Helping to Create a Culture of Conservation

David J. ColliePresident and CEO

An Update on Ontario’s Smart Metering Initiative

The Ontario Market

Ontario Supply Outlook

• Need to replace 25,000 MW of capacity over 20 years • Desire to reduce coal• Localized system constraints

Smart Metering and Conservation History in Ontario

• 2004 – the province directs the energy board to establish a plan for implementation of smart metering

• Local distribution companies are funded for 3 year program of conservation and demand management

Information Programs - Demand Response and Smart Metering - Large Consumers

• Launched for customers over 200 KW demand

• Provide market intelligence

• Alarms - Via email, fax or phone

• Customers can Adjust accordingly

Regional Centre of ExcellenceCDM – Smart Meters for Market

Bidding

In-School EducationLinked with Smart Meter Data

Provincial Target

• 800,000 smart meters by end of 2007

• 4.5 million (all accounts) by 2010

• Condominium corporations – all by 2010

Implementation Staged Roll Out

• Selected utilities in first phase• Over ½ million installed by end of summer*

* estimated

Time of Use Pricing

• Numerous pilot projects being conducted• Determining price sensitivity points

Meter Data Management/ Repository (MDM/R)

• Province-wide system on behalf of the government of Ontario

• Called the Smart Metering Entity – yet to be formally established

• Currently the MDM/R is being constructed• Interface with 80 LDCs – 12+ systems• Oversight committee• Working groups ongoing

Public and EmployeeCommunications – Toronto Hydro

Used with permission

Regulation and Cost RecoverySmart Meters

• Dec. 2006 LDCs file implementation plans

• LDCs to receive an interim rate rider based upon plan

• Generic hearing in summer/fall of 2007 on costs

• MDM/R and AMI hearing by year end

• Time of Use rates – fall

• 2008 LDC rate rider

Occupant Benefits of Multi-Unit Residential

Submetering

Halton Condominium Corporation # 169Case Study

Background

• Implemented late 2005

• Smart meter pilot under CDM

• Space limitations required data collector technology

• Quadlogic chosen as vendor

• Monitor 83 units plus all major loads (common lighting, chiller, etc)

Quadlogic Mini Closet-5 Data Collector

Customer Motivation

• Fair allocation of in-unit consumption costs (many residents are “snow birds”)

• Supports conservation efforts by occupants

• Will be mandated for all condominium units by 2010 through Bill 21 – Energy Conservation Leadership ActSpace Limitations Require Data Collectors

Conservation Effect

Harbour Lights Energy Consumption Year-over-Year

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Co

nsu

mp

tio

n (

kWh

)

2006 2005

Data Weather Normalized & Adjusted for Lighting Retrofit

Implementation

Customer “Adjustment” Period 20% Conservation Effect

Benefit as a Diagnostic Tool

Harbour Lights - Ramp Heater Electricity Consumption

-

500

1,000

1,500

2,000

2,500

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

November 2005

Da

ily

Ele

ctr

icit

y

Co

ns

um

pti

on

(k

Wh

)

Ramp Heater Consumption

Diagnostic Tool (Con’t)

Harbour Lights - Ramp Heater Electricity Consumption & Weather Conditions

-

500

1,000

1,500

2,000

2,500

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

November 2005

Dail

y E

lectr

icit

y C

on

su

mp

tio

n

(kW

h)

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

cm

or

Deg

C

Ramp Heater Consumption (kWh) Daily Snowfall (cm) Mean Daily Temperature (Deg C)

Why is Ramp Heater On?

No Snow & 12°C

After Repair, Normal Operation Resumes

Ontario-Wide Extrapolation

• Extrapolating these results to all of Ontario’s multi-unit residential buildings would result in these annual avoidances:

1,100,000 tonnes CO2

1,650,000 mWh 4,900,000 Kg SO2

1,000,000 Kg NOx

Helping to Create a Culture of Conservation

David J. ColliePresident and CEO

An Update on Ontario’s Smart Metering Initiative