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

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CONFIDENTIAL
NEGOTIATED SETTLEMENT AGREEMENT
TERASEN GAS INC.
DATED THURSDAY, NOVEMBER 5
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 industrial programs or
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 TGI’s 2010 results report to be filed in March 2011.
• Employees responsible for the programs at TGI, whose salaries are funded from
EEC funding, will face the prospect of losing their jobs in 2011. This could lead to
employee retention issues. Employee turnover issues may disrupt the program
implementation progress and potentially be more costly if EEC activity is ceased
and later resumed.
• Programs will need to begin winding down in advance of 2011 if the 2011 funding is
not approved. For example, programs will need to have an end date of December
31, 2010 which may not yield positive results since programs will be winding up in
the middle of the heating season.
12.2 The Parties agree that the Commission may sever Section 12.1 (a) and (b) above from
this Agreement, with the remainder of this Agreement remaining in force and effect. If
the Commission severs Section 12.1 (a) and (b), then the Parties agree that the
following provisions take effect:
(a) The Residential and Commercial EEC programs totaling $23.075 million in 2011
will be removed from the EEC expenditure forecast and the revenue requirements
for 2011. (If 12.2 takes effect, the financial schedules in Part IV of this Agreement
and the revenue requirements resulting from this Agreement will be revised to
reflect this).
(b) The Parties agree that the first annual report on EEC Activities, which was due to
be filed on March 31, 2010 pursuant to Order No. G-36-09, can be filed on or
before June 30, 2010. Concurrent with that report, TGI will file an application with
the anticipation of a decision within 120 days after filing. The application will
include requests for:
i. approval of the above EEC funding for 2011;
ii. approval of the same financial treatment approved in the EEC Decision; and
iii. approval for the continuation of the portfolio approach and assessment
methodology as approved in the EEC Decision.
13. Alternative Energy Solutions
APPENDIX A
to Order G-141-09
Page 8 of 110
Alternative Energy Solutions (“AES”) means Geo-exchange, Solar-thermal and District
Energy Systems as those terms are described in the Application.