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

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CONFIDENTIAL
NEGOTIATED SETTLEMENT AGREEMENT
TERASEN GAS (VANCOUVER ISLAND) INC.
DATED THURSDAY, NOVEMBER 5
(d) All agreed to EEC expenditures will be considered and evaluated within the existing
portfolio, and be subject to the same financial treatment, as per the Commission’s
EEC Decision dated April 16, 2009 (Application, page 438, Item 15). However,
Innovative Technology programs will be managed by TGVI as a separate segment
of the overall portfolio to have a weighted average TRC of 1.0 or more. TGVI will
consult with stakeholders on the practical application of the weighted average TRC
through the EEC Advisory Committee.
(e) TGVI will report to the Commission on innovative technology programs as part of
TGVI’s annual report on EEC activities required under the EEC Decision.
The Parties offer the following rationale for the agreed upon 2011 EEC funding.
APPENDIX A
to Order G-140-09
Page 9 of 102
All Parties agree that it is important to maintain EEC funding levels in 2011 to allow
customers to have continued access to EEC programs and incentives. The residential
and commercial EEC programs relating to the $4.726 million funding in 2011 on a
portfolio basis in aggregate have a TRC of one or more. This means that, from a
resource perspective and on a portfolio basis, these programs are expected to yield
favourable results for customers. The predictability and continuity of these programs
on a sustained basis is critical to their overall success.
Issue No. 1 in the Commission Panel’s “Issues of Particular Concern to the
Commission Panel” stated:
“EEC Program – TGVI is to provide results of programs approved by the EEC Decision and
expectations for new programs before the Commission Panel will approve additional EEC
program funding.”
There are practical difficulties associated with the approach identified by the
Commission Panel. They include the following:
• As per the EEC Decision (Order No. G-36-09), TGVI will be reporting 2009
activities and results by no later than March 31, 2010. This report will also outline
the forecasted activities and programs for 2010. Recognizing the timing of the
recent EEC Decision and its current implementation in the Fall of 2009, the EEC
Report for 2009 results will give the Commission and stakeholders another check
point to validate the level of spend for 2011. However, there is expected to be very
little additional information on the results of programs available in March 2010 than
exists presently and is included in the evidentiary record of this proceeding. TGVI’s
EEC programs only completed start up phase in the Fall of 2009. It typically takes
longer than 6-8 months to achieve momentum with EEC programs. There will be
no information available in March 2010 on results for programs relating to
innovative technologies initiated in 2010 as a result of this Agreement. The
information that the Commission Panel appears to desire will be more likely
included in TGVI’s 2010 results report to be filed in March 2011.