appendix 9a dsm implementation plan - bc hydro - … · · 2018-02-27appendix 9a - dsm...

2012 Integrated Resource Plan

Appendix

9A

DSM Implementation Plan

2012 Integrated Resource Plan Appendix 9A - DSM Implementation Plan

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Table of Contents

1 Context and DSM Strategy ................................................................................. 1

1.1 Legal and Policy Context .......................................................................... 1

1.1.1 Definition of DSM ........................................................................ 1

1.1.2 British Columbia’s Energy Objectives ......................................... 2

1.1.3 Future Approval Process ............................................................ 3

1.1.4 DSM Regulation .......................................................................... 3

1.1.5 Bill 32 (Energy and Water Efficiency Act) ................................... 3

1.2 Conservation Potential .............................................................................. 3

1.3 DSM Strategy ............................................................................................ 4

2 DSM Plan Description ........................................................................................ 6

2.1 Contents .................................................................................................... 7

2.1.1 Energy-focused DSM .................................................................. 7

2.1.2 Capacity-focused DSM ............................................................. 17

2.2 Energy and Capacity Savings ................................................................. 18

2.2.1 Energy-focused DSM ................................................................ 18

2.2.2 Capacity-focused DSM ............................................................. 19

2.3 Utility Costs ............................................................................................. 20

3 Justification ...................................................................................................... 20

3.1 Energy-focused DSM .............................................................................. 21

3.1.1 Cost-Effectiveness .................................................................... 21

3.1.2 Rate Impact .............................................................................. 21

3.1.3 Environmental and Economic Benefits ..................................... 21

3.1.4 Comprehensive and Flexible .................................................... 22

3.1.5 Policy Alignment ....................................................................... 22

3.2 Capacity-focused DSM ........................................................................... 23

3.3 Alignment with Clean Energy Act ............................................................ 24

4 DSM Risk Management ................................................................................... 26

4.1 Risk Mitigation ......................................................................................... 26

4.1.1 Codes and Standards ............................................................... 26

4.1.2 Rate Structures ......................................................................... 27

4.1.3 Programs .................................................................................. 27

4.1.4 Portfolio .................................................................................... 28

4.2 Performance Management ...................................................................... 28


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List of Figures

Figure 1 DSM Strategic Framework ................................................................. 5

List of Tables

Table 1 DSM Tools and the Strategic Contexts .............................................. 6

Table 2 Energy-Focused DSM Tools and Initiatives in DSM Option 3 ............ 8

Table 3 Supporting Initiatives ........................................................................ 16

Table 4 Capacity-focused Program Areas..................................................... 18

Table 5 Energy-focused DSM: Cumulative Energy Savings since F2012 at Customer Meter in F2021 (GWh) (mid) ........................................ 19

Table 6 Energy-focused DSM: Cumulative Associated Capacity Savings since F2012 at Customer Meter in F2021 (MW) (mid) ..................... 19

Table 7 Capacity-focused DSM: Cumulative Capacity Savings since F2012 at Customer Meter in F2021 (MW) (mid) ............................... 19

Table 8 Utility Costs ($ million) ...................................................................... 20


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1 Context and DSM Strategy

BC Hydro’s Demand-Side Measure (DSM) Implementation Plan is guided by

government legislative requirements and policies including Bill 32 (Energy and

Water Efficiency Act) (section 1.1), an estimate of the potential energy and capacity

savings that could be achieved among BC Hydro’s customers (section 1.2) and

BC Hydro’s strategy for attaining this DSM potential (section 1.3). The DSM

Implementation Plan describes how BC Hydro will implement the DSM

recommendations of the IRP (section 2). The remainder of the Plan provides a

justification for proceeding with implementation and a discussion of risk

management tactics.

1.1 Legal and Policy Context

1.1.1 Definition of DSM

The term “demand-side measure” is broadly defined in subsection 1(1) of the British

Columbia (B.C.) Clean Energy Act1 (CEA):

“demand-side measure” means a rate, measure, action or program undertaken

(a) to conserve energy or promote energy efficiency,

(b) to reduce the energy demand a public utility must serve, or

(c) to shift the use of energy to periods of lower demand,

but does not include

(d) a rate, measure, action or program the main purpose of which is to encourage a

switch from the use of one kind of energy to another such that the switch would

increase greenhouse gas emissions in British Columbia, or

(e) any rate, measure, action or program prescribed.

1 S.B.C. 2010, c 22.


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With respect to (e), to date no rate, measure, action or program has been excluded

by B.C. Minister of Energy regulation under subsection 37(b) of the CEA.

BC Hydro does not consider the following to be DSM, all of which is captured in

BC Hydro’s Load Forecast:

Closure of industrial facilities as a result of economic conditions;

Rate increases from Revenue Requirement Applications (RRAs) or as set out

in BC Hydro’s Long Term Rate Forecast (LTRF) (as opposed to conservation

rate structures described below);

Natural conservation, defined as natural changes in efficiency that are expected

to occur in the absence of DSM initiatives.

1.1.2 British Columbia’s Energy Objectives

The following British Columbia’s energy objectives are relevant to BC Hydro’s DSM

Plan:

To achieve self-sufficiency (CEA, subsection 2(a)). Subsection 6(2) of the CEA

requires that BC Hydro achieve electricity self-sufficiency by 2016 and each

year thereafter.

To take demand-side measures and to conserve energy, including the objective

of BC Hydro reducing its expected increase in demand for electricity by the year

2020 by at least 66 per cent (CEA, subsection 2(b)).

To use and foster the development in B.C. of innovative technologies that

support energy conservation and efficiency (CEA, subsection 2(d)).

To reduce greenhouse gas emissions (CEA, subsection 2(g))

To encourage communities to reduce GHG emissions and use energy

efficiently (CEA, subsection 2(i)).


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To reduce waste by encouraging the use of waste heat (CEA, subsection 2(j)).

and

To encourage economic development and the creation and retention of jobs

(CEA, subsection 2(k)).

1.1.3 Future Approval Process

Pursuant to subsection 44.2(1)a of the UCA, BC Hydro will file an application for

BCUC approval of expenditures related to the DSM Plan. It is expected that the

application will include an updated DSM Plan that will reflect new information

available at the time of filing on plan performance, DSM costs and energy savings

opportunities.

1.1.4 DSM Regulation

In its determination of DSM cost-effectiveness when considering DSM expenditure

applications, the BCUC must consider and be guided by the Demand Side Measures

Regulation.2 The Total Resource Cost (TRC) test results reported in Attachment 1,

Tables 5 and 6, have been calculated in accordance with this Regulation.

1.1.5 Bill 32 (Energy and Water Efficiency Act)

Bill 32 (Energy and Water Efficiency Act) provides a new framework for the

development, administration and enforcement of codes and standards. Together

with the Pacific Coast Collaborative’s “2012 West Coast Action Plan on Jobs” that

seeks to jointly develop energy efficiency upgrades, technologies and standards,

additional and more cost effective DSM savings would be anticipated.

1.2 Conservation Potential

BC Hydro’s DSM strategy development is grounded in an estimate of the size of the

electricity conservation and efficiency “resource”, being the potential to save

electricity through DSM measures. The 2007 Conservation Potential Review (CPR)

2 Pursuant to section 44.2(5.1)(d) of the UCA.


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estimated the potential energy and capacity savings that could be achieved among

BC Hydro’s customers from 2006 to 2026. The CPR is a technical, end-use analysis

of where, how and at what cost electricity demand in British Columbia could be

reduced and estimates potential savings without assuming which DSM tools would

be employed. The CPR identified 19,000 GWh/year of economic potential electricity

savings by F2021 at a cost less than 13 cents/kWh. In addition, further savings are

possible through changes that are not reflected in the CPR estimates, such as

lifestyle changes, emerging technologies beyond those reflected in the CPR and

step-changes in energy efficiency technologies.

1.3 DSM Strategy

BC Hydro’s strategic objective to Mind Our Footprint outlines the goal of “fostering

an energy conservation and efficiency culture”. This objective is the starting point for

BC Hydro’s DSM strategy. The strategic framework introduced in the 2008 LTAP

continues to influence BC Hydro’s thinking on achieving electricity savings. 3 The

framework depicts three levels through which conservation and efficiency actions

can be influenced.

(i) Individual – refers to the context of the individual consumer who makes

decisions about energy-using equipment and buildings and how to operate or

use them.

(ii) Market – refers to the context of the marketplace where a number of market

parameters, such as prices and rules, influence decisions about energy

consumption and conservation by all consumers and market players.

(iii) Societal – refers to the context of the community or society where societal

norms and patterns of living and work influence market parameters and

individual choices.

The figure below provides a visual representation of the three contexts. 3 The strategic framework is consistent with that developed by BC Hydro’s Electricity Conservation and

Efficiency Advisory Committee.


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Figure 1 DSM Strategic Framework

With the strategic framework as its foundation, BC Hydro’s DSM strategy is to

pursue a diverse set of DSM tactics that:

Transform British Columbia’s economy by changing market parameters and

shifting societal norms and patterns to increase energy efficiency and

conservation,

Collaborate with customers and partners to leverage our efforts, and

Integrate with other offers and efforts, both internally and with other

organizations, to increase the effectiveness of programs and support market

and societal initiatives.

The DSM tactics fall under the following categories:

Codes and standards, designed to influence energy efficiency through

regulations on equipment, buildings and industry, tax measures and municipal

zoning and building permitting processes.

Societal Market Individual


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Conservation rate structures aimed at conserving energy, promoting energy

efficiency or reducing the demand BC Hydro must serve, such as the

Residential Inclining Block (RIB) rate, the Large General Service (LGS) rate,

and the Transmission Service Rate (TSR).

Energy-focused programs, designed to address barriers to energy efficiency

and conservation and capture additional conservation potential after codes and

standards and conservation rate structures, as well as to set the stage for

further changes to codes and standards;

Capacity-focused programs, including industrial load curtailment and a suite of

technology-focused programs, to specifically achieve capacity savings during

BC Hydro’s system peak by addressing barriers to peak shaving and peak

shifting;

Supporting initiatives, including support for the adoption of codes and standards

by various levels of government; public awareness and education; community

engagement; technology innovation; information technology; and indirect and

portfolio-level enabling activities that provide a critical foundation for the

success of the DSM tools in the DSM Plan.

Table 1 DSM Tools and the Strategic Contexts

Individual Market Societal

Codes & Standards √

Rate Structures √

Energy-focused Programs √ √ √

Capacity-focused Programs √

Supporting Initiatives √ √ √

2 DSM Plan Description

As described in Chapter 9, three key recommendations are made in the area of

DSM energy and capacity savings.


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(i) Pursue DSM Option 3 - Increase energy savings target to 9,800 GWh per year

by F2021 (1,000 GWh more than the current plan) based upon the first two

LNG loads being confirmed, through conservation and efficiency programs,

incentives and regulations.4 The utility cost of Option 3 over the four-year period

of F2014 – F2017 is estimated to be $1.4 billion.

(ii) Advance DSM Options 4 & 5 – Explore more codes, standards, and rate

options for savings beyond the 9,800 GWh target. This action supports Bill 32

(Energy and Water Efficiency Act). It also supports BC Hydro’s preparation for

the next IRP and has an approximate cost of $7 million from F2014 – F2017.

(iii) Pursue DSM Capacity Options - Pursue voluntary capacity-focused

conservation programs that encourage residential, commercial and industrial

customers to reduce energy consumption during peak periods. The utility cost

of DSM capacity options over the four-year period of F214 – F2017 is estimated

to be $143 million.

This section summarizes the contents of the DSM Plan.

2.1 Contents

The DSM Plan is made up of three DSM tools -- codes and standards, conservation

rate structures and programs -- along with six supporting initiatives focused on

energy and capacity savings. The Plan is flexible and will be adjusted over time as

appropriate to account for new information or new opportunities. The following

sections describe these tools and initiatives.

2.1.1 Energy-focused DSM

Table 2 summarizes the energy-focused initiatives within each of the DSM tools.

Each of these tools is described in turn.

4 DSM Option 3 targets energy savings by F2021 equivalent to approximately two Site C projects.


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Table 2 Energy-Focused DSM Tools and Initiatives in DSM Option 3

Tools Initiatives

Codes and Standards

Lighting

Torchieres

Traffic & Pedestrian Lights

Ceiling Fans

Fluorescent Lamps

High Intensity Discharge Lamps and Ballasts

Incandescent Reflector Lamps

Fluorescent Ballasts

General Service Lamps

Residential Appliances

Dishwashers

Portable Air Conditioners

Room Air Conditioners

Clothes Washers

Freezers

Refrigerators

Residential Electronics

Standby Power

Digital Television Adapters

External Power Supplies

Battery Chargers

Set-Top Boxes

Televisions

Other Residential Equipment

Furnace Blower Motors

Hot Tubs

Electric Water Heaters

Building Codes

BC Building Code City of Vancouver Building By-law

Commercial/Industrial Equipment

Commercial Clothes Washers

Ice Makers

Commercial Refrigeration

Dry Transformers

Large Air Conditioners

Liquid-filled Transformers

Single Package Vertical Air-conditioners

Packaged Terminal Air Conditioners

Pre-rinse Spray Valves

Large Motors

Rate Structures

Residential Inclining Block

Large General Service

Medium General Service

Small General Service

Transmission Service


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Tools Initiatives

Programs Residential

Behaviour

Lighting

Refrigerator Buy-Back

Low Income

New Home

Appliances

Consumer Electronics

Renovation Rebate

Load Displacement

Sector Enabling Activities

Commercial

Power Smart Partner

Product Incentive

New Construction

Load Displacement


Industrial

Power Smart Partners, Transmission

Power Smart Partners , Distribution

New Plant Design

Load Displacement


Cross Sector

Lead By Example

2.1.1.1 Codes and Standards

The term codes and standards refers to a range of government policy instruments

that can influence energy efficiency, including product/equipment regulations,

building codes, tax measures and municipal zoning and building permitting

processes. Codes and standards are coordinated with programs to help drive the

efficient technologies and practices. The DSM Plan supports and relies on

government implementation of a suite of changes to codes and standards. The

codes and standards included in DSM Option 3 have either been enacted,

announced or are planned by government.

The provincial government has introduced Bill 32 (Energy and Water Efficiency Act)

and initiated development of additional codes and standards since DSM Option 3

was developed. The DSM Plan will support the development of these additional

codes and standards and rely on their eventual implementation. Electricity savings

from additional codes and standards will increase the prospect of achieving targeted


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electricity savings and may allow BC Hydro to reduce its DSM costs relative to those

forecast in this DSM Plan. Additional details on the codes and standards projected in

the DSM Plan are provided in Attachment 3. While these actions are expected to

result in further codes and standards to rely upon in the future, BC Hydro will

continue to pursue and rely on Option 3 until sufficient certainty has been achieved

to adjust future DSM implementation plans.

2.1.1.2 Rate Structures

Rate structures are changes to the design of electricity rates to provide more

economically efficient price signals to customers which encourage conservation,

while collecting the same amount of revenue as previous rate structures. BC Hydro

has conservation rates in place (or with planned implementation) for 92 per cent of

its domestic load. Over the past five years, BC Hydro has implemented four

conservation rate structures for residential, commercial and industrial customers. A

conservation rate structure for small commercial customers in the Small General

Service rate class is planned for introduction in F2018. BC Hydro will continue to

consider potential changes to these rate structures that could achieve additional

electricity savings.5

2.1.1.3 Programs

The DSM Plan includes a suite of DSM programs that deliver a mix of information,

access to efficient technology and services, technical assessment and support, and

financial assistance to address barriers to cost-effective energy efficiency,

conservation and load displacement. The DSM programs are designed to capture

additional DSM energy savings potential that remains beyond that obtained from

codes and standards and rate structures. In addition, programs are designed to

complement rates structures and are critical in setting the stage for changes to

codes and standards. Sector enabling activities, such as trade ally support and

training, support the residential, commercial and industrial sector programs in

5 The government has initiated a review of industrial electricity policy, including industrial rates and rate design.


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achieving their savings. Programs will be adjusted as appropriate to account for new

information, such as aligning incentives with promising codes and standards or

changing program designs to work with new DSM financing mechanisms.6 A

description of the program strategy by sector is provided in the following sections.

Residential Programs

The suite of programs in the residential sector target a range of end-uses and aims

to address the barriers faced by all residential customers, including low-income

customers, in adopting energy efficiency and conservation measures. The

residential programs are designed to complement the RIB rate by helping customers

to respond to its conservation price signal and to set the stage for changes to codes

and standards, as they can help to advance and prepare the market for the adoption

of a regulation by government and acceptance by customers.

Behaviour: Provides customers with information and motivation to reduce their

consumption, including incentives to increase participation. This program will be

further enhanced with the introduction of Smart Metering, through the

introduction of in-home feedback.

Lighting: Targets increasing the efficiency of residential lighting by providing

incentives for residential customers to replace inefficient lighting technologies

with energy efficient products and raising awareness of efficient lighting

technologies, like specialty CFLs and light emitting diode products . In doing so,

the Lighting program sets the stage for government regulations on lighting.

Refrigerator Buy-Back: Encourages customers to give up their inefficient

second refrigerator, reducing the number of secondary refrigerators in the

marketplace.

6 In 2011, the government amended the Clean Energy Act (section 17.1) to enable the establishment of new

energy efficiency financing mechanisms by public utilities.


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Low-Income: Targets the energy-efficiency of low-income households by

addressing capital, awareness and education and other unique barriers that

often prevent these customers from participating in other DSM programs.

New Home: Encourages builders and developers to incorporate energy-efficient

products and design at construction, in order to increase the market share of

energy efficient new home construction and set the stage for changes to the

energy efficiency requirements in the BC Building Code.

Appliances: Encourages customers to consider energy efficiency when making

their appliance purchases by increasing awareness and providing upstream

incentives to retailers for targeted energy efficient products.

Consumer Electronics: Aimed at reducing the electricity consumption of

televisions and computers by residential customers through upstream

incentives directed at retailers.

Renovation Rebate: Encourages residential customers to undertake energy

efficient upgrades to their existing homes, primarily focused on their space

heating load. This program is embedded within the provincial government’s

LiveSmart BC offer and is managed and administered by the Ministry of Energy

in conjunction with BC Hydro and Fortis BC providing a seamless, fuel-neutral

and simple offer for customers.

Load Displacement: Expected to start in F2015, this program will target the

displacement of residential load through solar PV arrays for home use. The

objective of the program will be to prepare the market to take off when these

technologies become cost-effective in the future.

Finally, the DSM Plan includes residential Sector Enabling activities such as home

energy labelling, development of a financing initiative to provides access to loans for

energy efficiency home improvements, training to tradespeople and other partners to

enable them to deliver energy efficiency solutions and retailer partnerships that

support the success of residential DSM initiatives.


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Commercial Programs

The Commercial programs address the diverse needs and barriers businesses face

in undertaking energy conservation and efficiency measures. The suite of offers

includes financial resources, tools and education to identify and implement energy

saving capital projects and help to instil a conservation culture in the workplace. The

programs and sector enabling activities are designed to set the stage for changes to

codes and standards and to help customers respond to the conservation price

signals delivered by the LGS and MGS rate structures.

This is realized through a variety of program offers. The Power Smart Partners

program targets larger customers to implement energy efficiency retrofits, make

operational and maintenance changes, behavioural changes and to integrate energy

management into their ongoing business practices and corporate culture. The

Product Incentive program provides a simple mechanism to help businesses

implement simple retrofits as well as operations and maintenance and behavioural

actions. The New Construction program targets electricity savings of new

commercial buildings through more efficient design and construction relative to

standard practice and aims to transform the new commercial building industry to a

higher level of energy efficiency by influencing developers, designers, architects and

engineers. In the process, this program sets the stage for changes to the energy

efficiency requirements in the B.C. Building Code. The commercial load

displacement program (expected to start in F2015) will capture energy savings by

displacing existing electrical load at the customer site through the implementation of

a range of renewable distributed generation projects.

The DSM Plan also includes commercial sector enabling activities, which include the

Power Smart Alliance, which fosters collaborative relationships with energy

efficiency contractors, consultants, architects and design teams, the eCatalog which

addresses the availability barrier for energy efficiency products aimed at business

customers, and activities to further develop building labelling and a financing


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initiative to provides access to loans for energy efficiency measures and to build

workforce capacity in energy management.

Industrial Programs

The Industrial programs target opportunities among large industrial customers, such

as customer-based generation, process improvements, industrial equipment

upgrades and operations and maintenance improvements, as well as opportunities

in small and medium-sized industrial customers, such as lighting, compressed air,

process improvements and pumping. A primary strategy for the industrial sector is to

motivate and support industrial customers to integrate energy management into their

businesses and enable customers to undertake more energy efficiency projects. The

programs do so by providing tools, education and incentives to help customers

overcome barriers to implementing energy efficiency upgrades and improved energy

management practices.7 Industrial programs help customers to respond to the

conservation price signals delivered by the TSR and LGS rate structures and set the

stage for changes to codes and standards in the future.

The Industrial programs are designed to reflect the particular needs of customers

(e.g., size or sub-sector). The Power Smart Partners-Transmission program targets

large industrial customers who receive electricity supply at transmission voltage to

implement energy efficiency retrofits, make operational and maintenance changes,

behavioural changes and to integrate energy management their ongoing practices

and corporate culture. The Power Smart Partners-Distribution program is aimed at

small and medium industrial customers who receive electricity supply at distribution

voltage with a similar offer and objectives. The New Plant program provides a

comprehensive offer to support efficient facility design for new industrial plants in

British Columbia. The Load Displacement program provides support and incentives

7 The programs could also support customer compliance with industrial energy reporting requirements that are

contemplated under Bill 32 (Energy and Water Efficiency Act).


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for customers to displace purchased electrical load at their site through the

implementation of additional on-site generation of electricity.

The DSM Plan includes industrial sector enabling activities, such as the Power

Smart Alliance, which fosters collaborative relationships with energy efficiency

contractors and consultants to industrial customers, education and training on new

technologies and best practice information for customers and Alliance members and

activities to develop industrial plant certification as a tactic to increase energy

efficiency of industrial plants.

Lead By Example

The Lead by Example program targets electricity savings at BC Hydro’s facilities

through energy efficiency capital projects and working to instil conservation policies,

procedures and behaviours throughout BC Hydro’s organization.

2.1.1.4 Supporting Initiatives

The DSM Plan includes six supporting initiatives, shown in Table 3, that provide a

critical foundation of awareness, engagement and other conditions to support the

success of the DSM Plan’s tools and initiatives.


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Table 3 Supporting Initiatives

Supporting Initiatives Description

Public Awareness & Education Addresses market barriers to energy conservation by increasing: awareness of actions people and companies can take, acceptance of energy conservation as being the norm, understanding of the purpose and importance of energy conservation in general and participation in DSM initiatives specifically

Community Engagement Leverages the potential of communities and local governments to become energy efficient and embed conservation in community planning, and increase public energy conservation behaviour and interest in Power Smart programs

Technology Innovation Identifies world-leading energy efficient technologies and accelerates their commercialization and adoption in B.C.

Codes and Standards Support Supports government implementation of codes and standards with funding and technical assistance

Information Technology Design, development and deployment of IT infrastructure to support successful implementation of the Updated DSM Plan

Indirect and Portfolio Enabling General management and infrastructure to support implementation of the DSM Plan

2.1.1.5 Advancing Options 4 and 5

As outlined in Chapter 3, section 3.3.1, Options 4 and 5 would involve a shift in DSM

tactics to place a greater emphasis on changes in market parameters and societal

norms, including additional codes and standards, such as a building retrofit code,

and rate structures tied to building or facility energy intensity. These tactics have

considerable potential to deliver additional, cost-effective electricity savings but face

considerable uncertainty with respect to their feasibility, cost and impacts. The IRP

recommends that BC Hydro take action prior to the next IRP to begin to reduce

uncertainty about the feasibility and/or savings estimates for a selection of the tactics

in Options 4 and Option 5. A significant aspect of these activities will be working with

the government implementing Bill 32 (Energy and Water Efficiency Act), and the

Pacific Coast Collaborative’s “2012 West Coast Action Plan on Jobs”. These

activities could target building labelling, innovative rate concepts and industrial plant

certification. These activities are expected to include:

Strategy development


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Market research, studies and opportunity assessments;

Measure design, including modelling and cost-benefit analysis;

Customer, trade ally and/or stakeholder engagement; and

Pilots.

BC Hydro will develop an implementation plan for these activities for inclusion in

future DSM expenditure applications to the BCUC.

2.1.2 Capacity-focused DSM

While the energy-focused initiatives described above generate associated capacity

savings, additional capacity savings are achievable through capacity-focused DSM,

which targets capacity savings specifically. These activities, namely industrial load

curtailment and capacity-focused programs, will be pursued as a long-term capacity

resource and could represent a short-term resource if successful. These initiatives

represent BC Hydro’s first major implementation of capacity-focused DSM, and as a

result, experience will need to be gained to increase certainty of the expected

electricity savings.

2.1.2.1 Industrial Load Curtailment

Industrial load curtailment targets large customers who agree to curtail load on short

notice in return for a financial payment when total customer load exceeds

BC Hydro’s capabilities.

2.1.2.2 Capacity-focused Programs

The programs are designed to provide capacity savings that can be dispatched

under utility control. Programs may involve payment for customer equipment and a

financial payment for participation in the program. These program efforts will need to

be designed to encourage customer participation in the absence of peak and

off-peak price signals. In addition, as smart appliances are introduced with the


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capability to communicate with smart meters, new capacity-focused opportunities

are expected to emerge.

Table 4 Capacity-focused Program Areas

Residential Commercial Industrial

- Water heater control

- Thermostat or switch controlled heat

- Switch controlled radiant heat

- Energy management system load control

- Water heater load control

- Thermostat or switch controlled heat

- Air conditioning load control

- Direct load control for distribution customers

2.2 Energy and Capacity Savings

The DSM Plan will deliver an increasing volume of energy and capacity savings over

a 20-year period. This section provides a snapshot of energy and capacity savings

from the DSM Plan at roughly the ten-year mark, in F2021. The energy and capacity

savings presented in the tables are the mid savings estimates stemming from the

DSM uncertainty assessment, as described in Chapter 5, section 5.2.3.2 and are at

the customer meter and do not include additional savings through reduced line

losses.

2.2.1 Energy-focused DSM

Table 5 and Table 6 provide expected energy and capacity savings from

energy-focused DSM in F2021. Attachment 1 provides more detailed information on

savings.


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Table 5 Energy-focused DSM: Cumulative Energy Savings since F2012 at Customer Meter in F2021 (GWh) (mid)

Codes and Standards

Rate Structures Programs Total

Residential 1,540 0 625 2,165

Commercial 699 873 1,507 3,079

Industrial 61 565 3,084 3,710

Total 2,301 1,438 5,216 8,954

Table 6 Energy-focused DSM: Cumulative Associated Capacity Savings since F2012 at Customer Meter in F2021 (MW) (mid)

Codes and Standards

Rate Structures Programs Total

Residential 401 0 79 479

Commercial 123 120 193 437

Industrial 7 72 370 449

Total 531 192 642 1,365

2.2.2 Capacity-focused DSM

Table 7 provides a snapshot of expected capacity savings from capacity-focused

DSM at roughly the ten-year mark in F2021. Attachment 2 provides more detailed

information on savings.

Table 7 Capacity-focused DSM: Cumulative Capacity Savings since F2012 at Customer Meter in F2021 (MW) (mid)

Industrial Load Curtailment 286

Capacity-Focused Programs

Residential 99

Commercial 31

Industrial 61

Sub-total 191

Total 477


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2.3 Utility Costs

Implementation of the DSM Plan requires investment on the part of BC Hydro to

implement rate structures, programs and supporting initiatives. Table 8 summarizes

these costs over a 4 and 19 year period. The costs have been risk-adjusted to align

with the mid savings estimates provided above. Attachments 1 and 2 provide more

details on BC Hydro costs.

Table 8 Utility Costs ($ million)

DSM Plan Initiatives

Four Years:

F2014-F2017

19 Years:

F2014-F2032

Energy-Focused DSM Rate Structures 13 61

Programs

Residential 248 1,223

Commercial 470 3,005

Industrial 498 2,183

Total Programs 1,217 6,411

Supporting Initiatives8 144 815

Sub Total 1,374 7,287

Capacity-Focused DSM Industrial Load Curtailment 64 427

Capacity Programs 80 373

Sub Total 143 800

DSM Plan Total 1,5259 8,094

9

To the extent that additional codes and standards, DSM financing mechanisms or

rate structure changes deliver additional electricity savings, BC Hydro’s DSM costs

may be lower than indicated in the table.

3 Justification

The following section provides justification for the DSM Plan, including how the plan

aligns with the Clean Energy Act objectives.

8 Includes Codes and Standards support.

9 Includes $7 million for activities to advance Options 4 and 5.


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3.1 Energy-focused DSM

3.1.1 Cost-Effectiveness

Option 3 would deliver electricity savings at an average unit net cost of less than

$10 per MWh10, compared to new electricity supply costing an average of

$129 per MWh.11 As shown in Chapter 6, the expected cost of portfolios with

Options 3, 4 and 5 are quite close, with Option 4 being the lowest cost option.12

However, going beyond Option 3 is not recommended at this time because the small

cost advantage is outweighed by the additional deliverability risk associated with

Options 4 and 5. Nevertheless, the upside potential of Options 4 and 5 warrants

further attention, as discussed in recommended action II.

All DSM tools in the DSM Plan have a Total Resource benefit-cost ratio greater than

1.0 (refer to Attachment 1, Table 6).

3.1.2 Rate Impact

Despite the fact that Option 3 is expected to result in a rate impact compared to

Option 2, it is expected to result in lower overall electricity bills ($180 million relative

to Option 2 over the 20-year life of the IRP). Option 3 is expected to result in a

2 per cent rate increase over Option 2 over a ten-year period by F2021.

3.1.3 Environmental and Economic Benefits

DSM avoids the environmental impacts associated with the construction of new

generation facilities. Specifically, the energy-focused DSM outlined above would

avoid the environmental impacts of approximately 1,300 MW of new electricity

supply. Additionally, DSM has the potential to reduce the province’s greenhouse gas

emissions. Customers are forecast to reduce their natural gas consumption as a

10

Chapter 6, Figure 6-10. 11

$129/MWh is BC Hydro’s current reference energy price based on levelized UEC for the Clean Power Call firm energy price (adjusted for delivery to the Lower Mainland and for transmission losses and other Clean Power Call-related adjustments).

12 Chapter 6, Figure 6-11.


Page 9A-22 May 2012

result of BC Hydro’s electricity DSM activity, resulting in a 146,000 tonnes reduction

in GHG emissions in F2021.

Incremental DSM also provides economic development benefits through the creation

and retention of jobs and increases in GDP.

3.1.4 Comprehensive and Flexible

The DSM Plan provides a comprehensive portfolio of DSM measures with a broad

offering to all customer groups, which work in concert to affect significant and

enduring change in the way electricity is utilized in the province. DSM measures are

designed to complement one another and capture synergies. They are flexible and

can be changed over time in response to new information in order to optimize

performance and ensure DSM savings targets are achieved.

The DSM Plan is designed for learning in that it includes actions to begin to establish

and reduce uncertainty with respect to the feasibility and/or potential electricity

savings from selected DSM tactics that were identified as having considerable

savings potential. In F2032, in high DSM scenario, Option 5 could provide

8,100 GWh more savings than Option 3. Therefore, this learning will inform future

IRPs.

3.1.5 Policy Alignment

Option 3 aligns with several Clean Energy Act (CEA) objectives, as discussed in

section 3.3. The work undertaken to implement Option 3 will also support Bill 32

(Energy and Water Efficiency Act). Bill 32 provides a new framework for the

development, administration and enforcement of codes and standards. Together

with the Pacific Coast Collaborative’s “2012 West Coast Action Plan on Jobs” that

seeks to jointly develop energy efficiency upgrades, technologies and standards, the

Energy and Water Efficiency Act creates the potential for additional, cost-effective

DSM savings.


Page 9A-23 May 2012

3.2 Capacity-focused DSM

The load-resource balance indicates a capacity gap starting in F2017 that persists at

different levels over time despite the addition of large increments of generation

capacity from Mica Units 5 and 6, Revelstoke Unit 6 and Site C. At that point

BC Hydro will have exhausted the supply of relatively low cost and large scale

increments of generation capacity and will need to advance a number of long-term

capacity options to fill the remaining gap. Two capacity-focused DSM (CF-DSM)

options, Industrial Load Curtailment and Capacity-focused Programs, have the

potential to deliver capacity savings over the long-term, at an estimated cost of

$32/kW-year and $53/kW-year respectively.13 These costs are lower than gas-fired

generation and pumped storage, the marginal capacity resources depending on the

timeframe. If successful, CF-DSM will avoid the need for 475 MW of generation and

bulk transmission capacity, resulting in a lower environmental footprint. In addition,

CF-DSM would support BC Hydro in meeting its self-sufficiency and 93 per cent

clean requirements as part of the CEA. Section 6.10 in Chapter 6 discusses the

capacity analysis.

CF-DSM represents a new capacity resource to BC Hydro and is subject to

uncertainty with respect to its ability to reduce the system peak over the long-term.

For this reason, BC Hydro will not yet rely on capacity savings from CF-DSM for

resource planning purposes. However, implementation of CF-DSM starting in F2014

is justified based on BC Hydro’s need for capacity resources and the low cost of

CF-DSM relative to alternatives. CF-DSM provides the capacity potential to reduce

the need for bridging resources and the likelihood of new gas-fired generation being

used in contingency plans. Implementation will provide BC Hydro with information on

the cost and impacts of CF-DSM that will inform decisions in future IRPs on whether

to rely on CF-DSM as a long-term capacity resource.

13

Includes transmission and distribution losses.


Page 9A-24 May 2012

3.3 Alignment with Clean Energy Act

The DSM Plan contributes to and aligns with British Columbia’s energy objectives as

outlined in the Clean Energy Act. Specifically:

to achieve electricity self-sufficiency: The DSM Plan’s forecast energy and

capacity savings will contribute to BC Hydro achieving electricity

self-sufficiency.

to take demand-side measures and to conserve energy, including the

objective of BC Hydro reducing its expected increase in demand for

electricity by the year 2020 by at least 66 per cent: The DSM Plan is

forecast to reduce BC Hydro’s increase in electricity demand in F2021 by

approximately 58 per cent including the Initial LNG load. Without the Initial LNG

load, the plan would reduce the increase in demand by 78 per cent. None of the

DSM Options meet the 66 per cent objective; Option 3 goes further towards

meeting the objective than the current 2008 LTAP target.

to generate at least 93 per cent of the electricity in British Columbia from

clean or renewable resources and to build the infrastructure necessary to

transmit that electricity: The implementation of DSM lowers the demand for

new resources, assisting in the achievement of this objective at lower cost.

to use and foster the development in British Columbia of innovative

technologies that support energy conservation and efficiency and the use

of clean or renewable resources: Both the DSM programs contained within

the DSM Plan and the Technology Innovation supporting initiative will promote

the use of innovative technologies supporting energy conservation.

to ensure BC Hydro’s rates remain among the most competitive of rates

charged by public utilities in North America: The DSM Plan is expected to

result in a cumulative 2 per cent increase in rates over a ten year period by

F2021 relative to Option 2. However, the DSM Plan is forecast to reduce


Page 9A-25 May 2012

customer’s electricity bills by $180 million relative to Option 2 over the 20-year

life of the IRP.

to reduce BC greenhouse gas emissions: The DSM Plan is forecast to result

in natural gas savings that will reduce BC greenhouse gas emissions.

BC Hydro estimates that the DSM Plan will reduce greenhouse gas emissions

by 146,000 tonnes in F2021.

to encourage the switching from one kind of energy source or use to

another that decreases greenhouse gas emissions in B.C.: The DSM Plan

includes the Community Engagement supporting initiative which supports local

governments and developers to consider and develop community wide energy

plans that encourage energy efficiency and decrease GHG emissions.

to encourage communities to reduce greenhouse gas emissions and use

energy efficiently: The DSM Plan’s Codes and Standards Support and

Community Engagement supporting initiatives provide support for communities

to incorporate electricity efficiency into community energy planning and

implement energy efficiency policies and projects.

to reduce waste by encouraging the use of waste heat, biogas and

biomass: The DSM Plan’s Commercial and Industrial Load Displacement

programs encourage load displacement using waste heat or renewable fuels

such as biogas and biomass.

to encourage economic development and the creation and retention of

jobs: BC Hydro’s analysis indicates that economic development benefits and

employment increase with increasing effort on DSM.


Page 9A-26 May 2012

4 DSM Risk Management

BC Hydro’s approach to DSM risk management begins with the identification and

assessment of risk and the development of mitigation measures at various stages in

the DSM process. Performance management of the DSM Plan is a key component

in managing the risks related to DSM savings and costs. In addition, BC Hydro uses

Contingency Resource Plans to mitigate DSM-related risks.

4.1 Risk Mitigation

4.1.1 Codes and Standards

A key aspect of codes and standards risk mitigation is that BC Hydro does not have

direct control over the implementation of codes and standards and thus relies on the

action of governments to deliver these savings. Thus there is uncertainty regarding

the timing, coverage and efficiency level of codes and standards outlined in the

DSM Plan. However, these risks are mitigated by BC Hydro using its influence to

support the implementation of codes and standards through its DSM programs and

codes and standards supporting initiative.

In addition, BC Hydro monitors government approval of codes and standards and

uses the best available information, including results from completed evaluations, to

estimate codes and standards savings. If it becomes apparent that codes and

standards savings might be less than planned, BC Hydro can respond in a number

of ways, for example:

Approach the most appropriate government (i.e., federal, provincial or local

government) to expedite the enactment of regulations; and

Continue DSM programs to capture some of the savings expected from a code

or standard.


Page 9A-27 May 2012

4.1.2 Rate Structures

BC Hydro has implemented or is in the process of implementing four conservation

rate structures that have been approved by the BCUC.14 Together these rate

structures will deliver an efficient price signal to customer classes that consume

92 per cent of BC Hydro’s domestic load.

The principal risk for rate structures is that the customer response from the rate

structures is lower than planned. BC Hydro mitigates this risk in several ways during

design and implementation - by applying rigorous rate design that includes customer

consultations, forecasting rates using the best information available and educating

customers on rate structure and how they can respond to it and achieve bill savings.

If rate structure savings are lower than planned, BC Hydro can take the following

actions:

Redesign rate structures;

Increase customer communication and support effort related to rate structures;

and

Expand DSM programs to achieve additional savings.

4.1.3 Programs

To minimize the risk of lower participation than planned, DSM programs are

designed to address barriers to energy efficiency and elicit customer participation

using information from BC Hydro customers, trade allies and other jurisdictions.

BC Hydro also undertakes comprehensive market and technical research into

current and future DSM opportunities to develop the most effective Program and

Initiative designs. In addition, conservation rate structures complement programs by

motivating customers to participate.

14

The Transmission Service Rate, Large General Service Rate, Medium General Service Rate and Residential Inclining Block Rate.


Page 9A-28 May 2012

Programs also face a risk of delivering lower savings per participant than planned.

This risk is mitigated by using a variety of sources on unit savings to forecast overall

program savings, including market research, technical reviews of projects,

measurement and verification results and program evaluations. If DSM program

electricity savings fall below plan, BC Hydro can modify the program to respond and

increase participation, for example by:

Increasing or modifying program advertising;

Modifying the program application process or eligibility criteria;

Increasing or modifying program incentives; and

Revising the list of qualifying products.

4.1.4 Portfolio

At the portfolio or plan level, relying upon the flexibility of DSM is a key risk

mitigation strategy. If DSM savings fall below plan or costs rise above plan,

BC Hydro can shift costs or resources between initiatives or sectors. For example,

through the diversity of the DSM plan, if one program is more successful than

planned, resources may be shifted from another program to take advantage of that

success. In doing so, these adjustments allow for the improvement of the DSM Plan

as it is implemented and the mitigation of both cost and deliverability risk.

4.2 Performance Management

BC Hydro manages the performance of the DSM Plan in a comprehensive manner

than includes tracking a number of performance metrics, regular management

reporting and oversight and electricity savings confirmation. The primary

performance metrics for the DSM Plan are energy savings and costs, which are

tracked monthly by initiative in addition to a number of supplemental leading and

lagging indicators. Variances from plan are identified and discussed by management

with a view to take corrective measures if needed.


Page 9A-29 May 2012

To further gauge performance, BC Hydro is continuously collecting feedback from

manufacturers, retailers and other trade allies and partners on its initiatives.

Management judgement, industry input and stakeholder feedback are then

combined with these key performance indicators, when assessing changes to

programs and initiatives.

During the implementation of a program or initiative, risks are monitored through the

tracking of indicators as described above. If the program is not performing as

expected or if there is new information that could impact the program, program

management will work to identify and analyze the issue and understand its potential

impact on program performance. Issue identification and analysis could involve

gathering feedback from customers and trade allies and additional market research.

Once the issue is identified and understood, solutions would be explored and if a

specific change has a good prospect of mitigating the issue, adjustments would be

made to the program.

Finally, reliably estimating DSM savings is also an important strategy to mitigate

DSM deliverability risk. To accomplish this, BC Hydro undertakes a comprehensive

approach to DSM evaluation, measurement and verification.

Energy-Focused DSMTable 1. Cumulative Acquired Energy Savings from F2012 at Customer Meter (GWh)

F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024

Codes and StandardsResidential 529 844 1,013 1,154 1,274 1,379 1,465 1,540 1,608 1,670 1,727Commercial 259 418 492 550 595 633 668 699 727 753 777Industrial 18 24 30 37 43 49 55 61 67 73 78Sub-total 807 1,286 1,535 1,741 1,911 2,061 2,188 2,301 2,402 2,495 2,583

Rate StructuresResidential 0 0 0 0 0 0 0 0 0 0 0Commercial 645 1,119 1,066 1,031 1,025 990 955 873 850 833 825Industrial 394 565 561 564 574 575 578 565 571 578 588Sub-total 1,039 1,684 1,627 1,595 1,598 1,565 1,533 1,438 1,421 1,410 1,413

DSM ProgramsResidential 453 499 548 613 592 569 591 625 659 691 718Commercial 404 534 663 835 1,026 1,208 1,364 1,507 1,645 1,781 1,910Industrial 506 832 1,144 1,477 1,827 2,256 2,660 3,084 3,372 3,569 3,689Sub-total 1,363 1,866 2,356 2,925 3,445 4,033 4,615 5,216 5,676 6,040 6,317

TOTAL 3,208 4,835 5,518 6,261 6,954 7,660 8,337 8,955 9,500 9,946 10,313

Note: F2012 and F2013 are not shown as detailed and updated information for these years is included in BC Hydro's F2012 - F2014 Revenue Requirements Application.

Appendix 9A - Attachment 12012 Integrated Resource Plan

Page 1 of 10 May 2012DR

AFT

Energy-Focused DSMTable 1. Cumulative Acquired Energy Savings from F2012 at Customer Meter (GWh)

Codes and StandardsResidentialCommercialIndustrialSub-total

Rate StructuresResidentialCommercialIndustrialSub-total

DSM ProgramsResidentialCommercialIndustrialSub-total

TOTAL

F2025 F2026 F2027 F2028 F2029 F2030 F203121 Year Total:

F2032

1,776 1,820 1,862 1,907 1,951 1,995 2,044 2,093801 824 846 867 886 906 925 94584 89 95 100 105 110 114 118

2,661 2,733 2,803 2,873 2,943 3,011 3,083 3,155

0 0 0 0 0 0 0 0847 875 906 938 985 1,029 1,079 1,098609 633 656 678 705 731 759 778

1,456 1,508 1,562 1,616 1,690 1,760 1,838 1,875

751 792 840 900 977 1,063 1,146 1,2232,022 2,104 2,171 2,232 2,256 2,271 2,289 2,3053,757 3,809 3,877 3,916 3,820 3,727 3,600 3,5896,530 6,705 6,888 7,047 7,054 7,060 7,035 7,117

10,646 10,946 11,253 11,537 11,686 11,831 11,956 12,147



AFT

Energy-Focused DSMTable 2. Cumulative Associated Capacity Savings from F2012 at Customer Meter (MW)

F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024

Codes and StandardsResidential 145 240 281 314 341 365 384 401 416 430 444Commercial 43 69 82 93 102 109 116 123 129 135 140Industrial 2 3 3 4 5 6 6 7 8 8 9Sub-total 191 312 367 411 448 479 506 531 553 573 593

Rate StructuresResidential 0 0 0 0 0 0 0 0 0 0 0Commercial 89 154 146 142 141 136 131 120 117 114 113Industrial 51 74 73 73 74 74 74 72 73 74 75Sub-total 140 228 219 215 215 210 206 192 190 188 188

DSM ProgramsResidential 72 77 81 89 81 68 73 79 84 89 93Commercial 47 64 80 103 128 152 174 193 212 231 249Industrial 60 99 137 177 219 270 319 370 405 430 445Sub-total 179 240 299 369 428 490 566 642 702 750 787

TOTAL 510 780 885 995 1,091 1,180 1,278 1,365 1,445 1,511 1,568

Note: F2012 and F2013 are not shown as detailed and updated information for these years is included in BC Hydro's F12-F14 Revenue Requirements Application.



AFT

Energy-Focused DSMTable 2. Cumulative Associated Capacity Savings from F2012 at Customer Meter (MW)

Codes and StandardsResidentialCommercialIndustrialSub-total



TOTAL

F2025 F2026 F2027 F2028 F2029 F2030 F203121 Year Total:

F2032

456 467 477 489 501 513 526 540146 151 156 161 167 172 177 182

9 10 11 11 12 12 13 13611 628 644 662 679 697 716 736

0 0 0 0 0 0 0 0116 120 125 129 135 141 148 15177 80 83 86 90 93 97 99

194 201 208 215 225 234 245 250

97 102 107 112 117 122 126 129265 276 285 294 297 300 303 305454 460 469 475 464 453 438 437816 839 861 880 878 874 866 871

1,620 1,667 1,713 1,757 1,782 1,805 1,827 1,856



AFT

Energy-Focused DSM Table 3. Total BC Hydro Costs ($ Million)

F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 F2025

Rate StructuresResidential 0 0 1 0 0 0 0 1 0 0 0 0Commercial 1 1 2 3 1 1 1 2 1 1 1 1Industrial 1 1 1 1 1 1 1 1 1 1 1 1Sub-total 2 2 4 5 2 2 3 4 3 3 3 3

DSM ProgramsResidential 68 63 61 56 57 55 54 54 59 56 61 70Commercial 94 115 120 142 152 150 151 158 161 162 164 168Industrial 129 129 119 122 133 171 119 154 92 92 94 96Sub-total 291 306 300 319 342 376 324 365 311 310 319 334

Supporting Initiatives 35 36 37 36 38 39 41 42 42 42 43 44

TOTAL 328 345 341 360 383 417 368 411 355 355 365 381



AFT

Energy-Focused DSM Table 3. Total BC Hydro Costs ($ Million)



Supporting Initiatives

TOTAL

F2026 F2027 F2028 F2029 F2030 F2031 F203219 Year Total: F2014-F2032

1 0 0 0 0 1 1 92 2 2 2 2 2 2 331 1 1 1 1 1 1 194 3 3 3 3 5 5 61

74 75 81 77 66 68 67 1,223171 176 179 184 187 190 183 3,00599 103 104 105 106 108 109 2,183

344 354 364 367 360 366 359 6,411

45 46 49 49 49 50 51 815

394 403 416 419 412 420 414 7,287



AFT

Energy-Focused DSMTable 4. Customer Electricity Bill Savings ($ Million)

F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 F2025

Codes and StandardsResidential 49 84 106 128 150 165 179 192 205 218 230 242Commercial 23 39 48 57 66 71 77 82 87 92 97 102Industrial 1 2 3 4 4 5 6 7 7 8 9 10Total Codes and Standa 74 125 157 189 220 242 262 281 300 318 336 354

Rate StructuresResidential 0 0 0 0 0 0 0 0 0 0 0 0Commercial 68 171 166 164 167 165 162 151 150 150 152 159Industrial 44 81 80 82 84 85 86 84 86 87 89 94Total Rate Structures 112 252 246 245 252 250 248 235 236 237 241 253

DSM ProgramsResidential 44 52 61 72 73 72 77 83 89 96 101 108Commercial 38 62 80 105 135 163 191 219 247 275 304 331Industrial 37 71 100 134 171 213 256 301 340 371 398 418Total Programs 119 184 241 310 379 449 524 603 676 742 803 857

PORTFOLIO TOTAL 305 561 644 744 851 941 1,034 1,120 1,212 1,298 1,381 1,464



AFT

Energy-Focused DSMTable 4. Customer Electricity Bill Savings ($ Million)

Codes and StandardsResidentialCommercialIndustrialTotal Codes and Standa

Rate StructuresResidentialCommercialIndustrialTotal Rate Structures

DSM ProgramsResidentialCommercialIndustrialTotal Programs

PORTFOLIO TOTAL

F2026 F2027 F2028 F2029 F2030 F2031 F203221 Year Total: F2012-F2032

253 264 276 288 301 315 329 4,002107 113 118 123 128 134 139 1,71511 12 13 14 14 15 16 162

371 388 406 425 444 464 485 5,879

0 0 0 0 0 0 0 0168 178 188 202 215 231 240 3,30198 103 108 114 120 127 132 1,824

267 281 297 316 336 358 372 5,125

117 127 139 154 172 189 207 2,062354 375 396 412 427 443 459 5,043437 458 477 480 483 481 489 6,133907 959 1,012 1,046 1,082 1,114 1,154 13,238

1,544 1,629 1,714 1,787 1,862 1,936 2,010 24,242



AFT

Energy-Focused DSMTable 5. Benefit Cost Ratios

Utility Test

Total Resource Cost

Test 1

Non- Participant

Test

Codes and StandardsResidential n/a 7.3 1.7Commercial n/a 8.7 1.7Industrial n/a 59.1 1.7Total Codes and Standards n/a 7.8 1.7

Rate StructuresResidential 0.0 0.0 0.0Commercial 30.9 35.5 1.1Industrial 28.7 12.6 1.2Total Rate Structures 28.8 20.4 1.1

DSM ProgramsResidential 2.1 2.3 0.9Commercial 1.8 2.3 0.7Industrial 3.4 3.4 1.1Total Programs 2.5 2.7 0.9

PORTFOLIO TOTAL 4.5 4.1 1.1

1 As per the DSM Regulation: -The avoided cost of natural gas is equal to 50% of BC Hydro's Long Run Marginal Cost of electricity. -Non-energy benefits (NEBs) equal 15% of avoided costs of electricity and natural gas (with the exception of the Low Income program which has NEBs of 30%). -The regulation allows attribution of codes and standards benefits to DSM programs. However, in this analysis none have been attributed.



AFT

Energy-Focused DSMTable 6. Levelized Costs ($/MWh)1

Utility Test

Total Resource Cost

Test

Non- Participant

Test Utility Test

Total Resource Cost

Test

Non- Participant

Test

Codes and StandardsResidential $0 $27 $95 -$25 -$34 $70Commercial $0 $22 $89 -$17 -$35 $72Industrial $0 $3 $85 -$11 -$30 $74Total Codes and Standards $0 $24 $93 -$22 -$35 $71

Rate StructuresResidential n/a n/a n/a n/a n/a n/aCommercial $5 $5 $134 -$8 -$30 $121Industrial $5 $13 $119 -$8 -$21 $106Total Rate Structures $5 $8 $129 -$8 -$26 $116

DSM ProgramsResidential $67 $81 $167 $56 $25 $156Commercial $78 $87 $193 $66 $18 $180Industrial $42 $48 $125 $30 $14 $113Total Programs $58 $66 $154 $45 $17 $141

PORTFOLIO TOTAL $32 $44 $133 $17 -$5 $118

1 Levelized costs will differ from those provided in Chapters 3 and 6 as they do not include transmission and distribution losses and are calculated using a different methodology.2 Gross costs net of non-energy benefits, natural gas benefits, and generation, transmission and distribution capacity benefits.

Gross Levelized Costs Net Levelized Costs2



AFT

Capacity-Focused DSMTable 1. Cumulative Capacity Savings since F2012 at Customer Meter (mid) (MW)

F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024

Industrial Load Curtailment 0 38 114 190 238 267 286 286 286 286 286 286 286

Capacity ProgramsResidential 0 13 38 63 87 99 99 99 99 99 99 99 99Commercial 0 2 8 17 27 31 31 31 31 31 31 31 31Industrial 0 3 16 36 54 61 61 61 61 61 61 61 61Sub-total 0 19 62 116 168 191 191 191 191 191 191 191 191

Total 0 56 176 306 407 458 477 477 477 477 477 477 477



AFT

Capacity-Focused DSMTable 1. Cumulative Capacity Savings since F2012 at Customer Meter (mid) (MW)

Industrial Load Curtailment

Capacity ProgramsResidentialCommercialIndustrialSub-total

Total

F2025 F2026 F2027 F2028 F2029 F2030 F2031 F2032

21 Year Total: F2032

286 286 286 286 286 286 286 286 286

99 99 99 99 99 99 99 99 9931 31 31 31 31 31 31 31 3161 61 61 61 61 61 61 61 61

191 191 191 191 191 191 191 191 191

477 477 477 477 477 477 477 477 477



AFT

Capacity-Focused DSMTable 2. BC Hydro Costs ($ Million)

F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024

Industrial Load Curtailment 0 2 11 16 17 20 21 21 22 22 23 23 23

Capacity ProgramsResidential 0 10 11 12 13 2 2 2 2 2 2 12 12Commercial 0 2 3 5 5 4 4 4 4 4 4 4 4Industrial 0 1 3 5 7 8 8 8 8 8 8 9 9Sub-total 0 13 17 23 26 14 14 14 14 15 15 25 25

Total 0 15 28 38 44 34 35 35 36 37 38 48 49



AFT

Capacity-Focused DSMTable 2. BC Hydro Costs ($ Million)

Industrial Load Curtailment

Capacity ProgramsResidentialCommercialIndustrialSub-total

Total

F2025 F2026 F2027 F2028 F2029 F2030 F2031 F2032

21 Year Total:

F2012-F2032

24 24 25 25 26 27 27 28 427

12 13 3 3 3 3 3 3 1274 5 5 5 5 5 5 5 879 9 9 10 10 10 10 10 158

26 26 17 17 17 18 18 19 373

50 51 42 43 43 44 45 46 800



AFT

Capacity-Focused DSMTable 3. Levelized Costs1 ($/kW-yr)

Utility CostTotal Resource

Cost

Industrial Load Curtailment 66 46

Capacity ProgramsResidential 70 66Commercial 136 77Industrial 116 90Sub-total 95 76

Total 78 58

1 Levelized costs will differ from those provided in Chapters 3 as they do not include transmission and distribution losses and are calculated using a different methodology.


Page 5 of 5 May 2012

DRAFT

Codes and Standards in DSM Implementation Plan

Table 1 summarizes the status of changes to codes and standards that are included

in Option 3 and that BC Hydro is relying on for resource planning purposes,

including actual or expected effective dates.

Through the Codes and Standards supporting initiative and by aligning DSM

programs with future regulations as appropriate, BC Hydro will also support new

codes and standards that arise over time, such as those enabled by Bill 32 ( Energy

and Water Efficiency Act). Table 2 summarizes additional codes and standards

beyond those in Option 3 that are under consideration by the provincial government.



Table 1 Status of Changes to Codes and Standards in DSM Option 3

Level of Government Actual or Expected Effective Date

Lighting

Torchieres Federal December-2008

Traffic & Pedestrian Lights Federal January-2009

Ceiling Fans Federal January-2010

Fluorescent Lamps Federal January-2013

High Intensity Discharge Lamps and Ballasts Federal January-2013

Incandescent Reflector Lamps Federal January-2013

Fluorescent Ballasts Provincial January-2009

General Service Lamps Provincial January-11 / January-15

Residential Appliances

Dishwashers Federal January-2010

Portable Air Conditioners Federal tbd

Room Air Conditioners Federal tbd

Clothes Washers Provincial January-2015

Dishwashers Provincial January-2013

Freezers Provincial January-2014

Refrigerators Provincial January-2014

Residential Electronics

Standby Power Provincial January-2013

Digital Television Adapters Federal January-2012

External Power Supplies Federal July-2010

Battery Chargers Federal tbd

Set-Top Boxes Federal January-2015

Televisions Provincial January-2012

Other Residential Equipment

Furnace Blower Motors Federal tbd

Hot Tubs Federal tbd

Windows Provincial January-2009

Electric Water Heaters Provincial September-2010

Commercial/Industrial Equipment

Commercial Clothes Washers Federal January-2009

Ice Makers Federal January-2009

Commercial Refrigeration Federal January-2012

Dry Transformers Federal January-2012

Large Air Conditioners Federal January-2012

Liquid-filled Transformers Federal tbd

Single Package Vertical Air‑conditioners Federal January-2012

Packaged Terminal Air Conditioning Federal January-2013

Pre-rinse Spray Valves Federal January-2013

Industrial Large Motors Provincial January-2011

Building Codes

Building Code – Commercial – BC Provincial September-08 / January-13

Building Code – Residential – BC Provincial September-08 / January-13

Building Code – Commercial By-law City of Vancouver September-08 / January-13

Building Code – Residential By-law City of Vancouver September-08 / January-13



Table 2 Additional Codes and Standards Under

Consideration by the Provincial Government

Set-top boxes

Battery chargers

Air-source heat pumps

Ground-source heat pumps

Computers and servers

Industrial energy reporting

Compressed air

Building retrofit code



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