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
which the Companies believe could improve performance and extend the reach of the energy
efficiency message within the commercial food service market segment. The Companies
propose to partner with GTNS that will be responsible for the program operations, including
overseeing the provision and installation of the pre rinse spray valves in qualifying locations.
GTNS will use its network of contacts in the food service industry to generate program
participants throughout the province. Further, GTNS will promote FortisBC’s other commercial
incentive programs wherever applicable. In practice, this will mean significant additional
customer direct promotions of the Efficient Commercial Water Heater program to one of its key
target groups. For their part, the Companies will pay for the new spray valves and provide
promotional materials and exposure for the program at all relevant opportunities.
While the initial forecast is for approximately 300 new spray valves to be installed, the
Companies will extend the agreement to allow for the installation of additional valves should the
initial collaboration prove to be positive and productive. The initial run of the program should
allow the Companies to invest approximately $25,000 in natural gas efficiency among
commercial food service establishments.
The Companies believe that despite the strong value proposition of low flow pre rinse spray
valves, the dynamics of the food service industry make it necessary to operate a DSM program
in order to capture the potential natural gas savings. The commercial food service business
tends to be exposed to significant volatility, making “cheapest first cost” a critical purchase
decision criteria for any item that is not critical to customer service. Food service establishments
typically lack the time or resources to research energy saving options or understand the benefits
provided. Though low flow spray valves pay for themselves relatively quickly, the ultimate
magnitude of the dollar savings per any single valve is unlikely to move most potential
beneficiaries to action. A utility funded DSM program makes it easy and straight forward for
participants to save natural gas by effectively eliminating both the effort and risk that potential
participants would normally associate with the selection of high efficiency options.
The spray valve program will also play an important role in introducing a new concept to the
food service industry, namely that energy is a variable cost. The Companies believe most food
service establishments consider energy to be a fixed cost and that changing this mindset is
essential to ultimately bringing about market transformation. In this light, the Companies believe
low flow pre rinse spray valve programs are an essential first step that will lead to greater
energy savings down the road.
4.4.3.1.3 Spray Valve Program Summary
The program is initially expected to install approximately 300 low flow pre rinse spray valves in
locations that would otherwise be using standard flow rate sprayers, generating significant
natural gas savings as a result. The Companies thus believe the program will successfully
deliver tangible natural gas GJ savings, as well as the non-tangible benefit of raising energy
awareness in the commercial food service sector. Furthermore, the program will allow the
Companies to develop and evaluate a business relationship with a potentially valuable partner
in the effort to achieve market transformation in the commercial food service sector. Finally, the
proposed program and partnership with GTNS represents an excellent opportunity to raise
SECTION 4: COMMERCIAL ENERGY EFFICIENCY PROGRAM AREA Page 85