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
road 20 over the same period. As a result, approximately 5,260 tons of annual GHG emissions
will be avoided.
Within the current climate of low natural gas prices, this represents a remarkable success as the
price of natural gas cannot be considered a driver of energy efficiency upgrades to any great
extent, except in those customers with very high gas consumption or where natural gas is an
input into some business process. Although the current price of gas can make it a challenge to
find cost effective energy saving measures to incent, it reinforces the need for energy efficiency
programs in order to achieve the government’s energy and climate change objectives. With low
natural gas prices, some customers are not motivated to save without utility encouragement.
Energy Efficiency and Conservation programs then become necessary to drive long term
market transformation towards improved efficiency.
A few additional highlights from 2010 include:
• Over $2.4 million committed as incentives to energy efficiency projects;
• A 58% increase year over year in Efficient Boiler program participation;
• The launch of the Efficient Commercial Water Heater program;
• Participation in the Public Sector Energy Conservation Agreement in partnership with the
Climate Action Secretariat and BC Hydro; and
• Work with BC Hydro to develop joint program offerings (Refer to 4.4.3.2 Commercial
Custom Design Program).
While the commercial programs have done well on a number of counts, the Companies have
also faced challenges and identified areas for improvement. With just over $2.5 million
expended in this program area, the commercial programs have ultimately underinvested when
compared to the approved amounts. This underinvestment represents opportunities to reduce
natural gas consumption that have not been capitalized upon. This situation is a result of the
considerable diversity of needs among commercial customers and a requirement for sufficient
EEC resources to address those needs. When it comes to commercial area DSM programs,
one size does not fit all. While the Companies’ initial focus has been to develop and operate
DSM programs around technologies with broad applicability to the commercial sector, investing
more and obtaining greater savings requires a more focused approach, with programs tailored
to meet the needs of specific subsectors. This approach will necessarily require resources to be
able to focus more specifically on the needs of the various subsectors. Beyond program design,
relationships with outside organizations and associations are crucial to program success and
these must be cultivated. The Companies must have the resources in place to invest the
required time and effort to build trust and confidence with partners in order to help assure
program success.
20 Based on five tons of carbon dioxide per year for a typical mid-sized car driven 20,000 kilometres per year.
Source: Statistics Canada, accessible at: http://www.statcan.gc.ca/pub/16-251-x/2006000/findings-resultats/greenhouseserre/4156371-eng.htm
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SECTION 4: COMMERCIAL ENERGY EFFICIENCY PROGRAM AREA Page 47