LEAP Conservation Working Group

June 25th, 2009

Agenda

• Union Gas Overview

• Helping Homes Conserve

• Weatherization

Union Gas –Who We Are• With more than 37,000 miles of distribution lines, Union

Gas has provided safe, reliable service to 1.3 million residential, commercial and industrial customers in 400 communities throughout Ontario for close to 100 years

• More than 150 billion cubic feet of gas storage at Dawn, the largest storage facility in Canada

• Union Gas’ storage and transportation assets are an important link in the movement of natural gas from all major North American supply basins to central Canadian and North Eastern U.S. markets

Union Gas Service Territory

5

DSM at Union Gas

• Actively engaged in DSM since 1997

• From 1997 through to the end of 2008, Union’s DSM activities have reduced customer demand for natural gas by more than 500 million m3

Helping Homes Conserve – Background• In the fall of 2006 we developed and launched our first

low-income program

• Success was limited due to issues locating and communicating with low-income customers

• Barriers were assessed and in 2007 a door-to-door strategy was launched which proved successful

Helping Homes Conserve – Program Offer• Professional installation of energy

efficient showerheads, pipe wrap, kitchen/bathroom aerators and programmable thermostats in low-income customer’s homes at no cost to the customer

• Program offered in Hamilton, Windsor, Sudbury, North Bay, London, Brantford and Cornwall

• Target of 10,000 showerheads, aerators and pipe wrap and 7,500 programmable thermostats

Helping Homes Conserve -Target Audience • Customers who have an income which is at 125% or

below Statistics Canada’s pre-tax, post-transfer Low-Income Cut-Off (LICO)

• Must pay their own energy bills

• Must reside in a residential building

Helping Homes Conserve – Customer Identification How did we identify our customers?• Purchased data through data mining company that identifies

postal codes with a high propensity of low income customers

• Data was analyzed and target lists were created

Helping Homes Conserve – Delivery to Market • Partnered with 3rd party contractor to perform installations by

professional technicians

• Technicians go door-to-door to addresses designated on our target lists

• Identified customers will receive a direct mail package in the mail a few weeks prior to the blanketing

• Direct Mail package will contain a letter explaining the technicians visit and a brochure outlining the program details

• As a reminder, technician will drop a notification flyer at the customers door 24-72 hours prior to their visit

Helping Homes Conserve – Delivery to Market• Technicians knock on doors asking if customers are

interested in an installation

• Customers have the option of booking an appointment with the technician

• If a customer isn’t home, the technician will leave a “sorry-we-missed you” door-hanger instructing them to call our toll-free number to book an appointment

• For tenants we require landlord permission to install a programmable thermostat

Helping Homes Conserve – Program Partners Social Service Agency PartnersHamilton• Housing Help Centre• Neighbour to Neighbour

Windsor• Downtown Mission

Sudbury• Red Cross of Sudbury – Housing Division• The Social Planning Council of Sudbury

London• Salvation Army

Currently working on developing relationships with agencies in new territories

Helping Homes Conserve – Education and Outreach • Education sessions held in partnership with our program

partners

• Low-cost and no-cost conservation tips

• Providing customers with a “starter-kit” for home weatherization

• Targeted education brochure

Low Income Weatherization - 2008 Hamilton Program• Weatherized 15 homes in “Keith Neighbourhood”

(30 audits performed)

• Customers will received a pre and post energy audit and building envelope upgrades including; attic/wall insulation and draft proofing

• No cost to customer

• Partnered with Environment Hamilton to recruit customers and Greensaver to deliver program

Low Income Weatherization – Retrofitted Homes

Low Income Weatherization - Program Saving Results2008• Calculated gas savings of approx. 27,000 m3 • Average of approx. 2000 m3 savings per home• Calculated electricity savings of approx. 4,300 kWh• Average of approx. 300 kWh savings per home• Resulted in approx. $60,000 of TRC

2009• Audited 6 units• Average 530 m3 potential savings per home• Average 500 kWh potential savings per home

Low Income Weatherization - Cost Summary2008• Spent approx. $10,000 on pre and post audits• Spent approx. $60,000 on retrofit costs• Spent approx. $40,000 on administrative costs• Total cost of approx. $110,000 to retrofit 15 homes ($7,300 per)

• Results in less than $1 in TRC earned for every dollar spent

2009• Associated costs are proving to be less as the m3 savings

are lower• Still earning less than $1 in TRC per dollar spent

Low Income Weatherization – Barriers• Extremely difficult to find candidates where the both the

resident and the home qualify

• TRC creates huge restrictions on which homes we can go into and what we can do once we’re in the home

• Customers generally lack an understanding of the benefits of weatherization

Low Income Weatherization – Barriers• Very difficult to set expectations with customers – do not

understand our “cost-effective” restrictions

• Recruiting customers takes a lot of effort and resources – not an easy concept to sell “quickly”

• Customers want their homes left in the same state it was prior to the upgrade (i.e. needs painting)

Walls After Insulation is Blown In

Low Income Weatherization – Lessons Learned • Large costs associated with implementation of the program

with little TRC earnings – increased funding needed to administer program on a larger scale

• TRC restricts us from going “deeper” in the home

• Program does not take into account the “non-energy benefits” of this program, such as increased comfort in the home

Low Income Weatherization – Lessons Learned • Current audit does not take into account supplemental

heating – i.e. electric space heaters, electric blankets, etc…

• Significant resourcing is needed to recruit customers and to educate them on the program benefits

• Customers who did participate in the program were very grateful and noted the improvement in their home comfort

Low Income DSM

Questions/Comments?