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All Cost-Effective Conservation: Developing a New Conservation Framework for Ontario’s Natural Gas Utilities July 2014 1

All Cost-Effective Conservation: Developing a New Conservation Framework

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All Cost-Effective Conservation: Developing a New Conservation Framework for Ontario’s Natural Gas Utilities. July 2014. Disclaimer. - PowerPoint PPT Presentation

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Page 1: All Cost-Effective Conservation: Developing a New Conservation Framework

All Cost-Effective Conservation:Developing a New Conservation Framework for Ontario’s Natural Gas Utilities

July 20141

Page 2: All Cost-Effective Conservation: Developing a New Conservation Framework

The views and ideas expressed in this presentation are presented by the Toronto Atmospheric Fund to support the discussion around developing a new gas DSM policy framework. We welcome your views about these or other issues related to natural gas conservation policy in Ontario

http://www.toronto.ca/taf/index.htm

Disclaimer

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Page 3: All Cost-Effective Conservation: Developing a New Conservation Framework

Conservation

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Energy Efficiency

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Demand-Side Management (DSM)

Terminology

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Page 4: All Cost-Effective Conservation: Developing a New Conservation Framework

Ontario’s “Conservation First” commitment in the Long Term Energy Plan

Ontario’s 2007 Action Planon Climate Change

Minister of Energy’s Directive to OEB

Context

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Page 5: All Cost-Effective Conservation: Developing a New Conservation Framework

OEB DSM Working Group

Draft DSM Guideline document expected mid-August

Opportunity to submit comments

Process

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Page 6: All Cost-Effective Conservation: Developing a New Conservation Framework

Enable all cost-effective energy efficiency Achieve greenhouse gas reductions Be cost-effective Be fair Enable improved quality of living in buildings

& improved business productivity

Key Objectives

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Page 7: All Cost-Effective Conservation: Developing a New Conservation Framework

Investing in DSM can raise rates but will deliver bill savings

Maximizing participation is key to stakeholder benefit from DSM

Minimizing impact on low-income consumers

Challenges & Opportunities

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Page 8: All Cost-Effective Conservation: Developing a New Conservation Framework

Non-participants experience rate impacts

Therefore, increase participation (i.e. pursue all cost-effective DSM)

Bill Benefits Exceed Rate Impacts

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Page 9: All Cost-Effective Conservation: Developing a New Conservation Framework

Ambitious savings targets and budgets Aim for all cost-effective energy efficiency

i.e. > 1% total gas sales annually

Reflect bottom-up DSM potential studies and the experience of jurisdictions with similar goals i.e. minimum $200 million/year

for Ontario

Key Design Elements

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Page 10: All Cost-Effective Conservation: Developing a New Conservation Framework

Cost-effectiveness calculation should: Treat costs and benefits symmetrically

i.e. include costs and benefits for ___each perspective examined

Account for government policies/priorities e.g. address GHG emissions (carbon price) and

___low-income impacts.

Key Design Elements

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Page 11: All Cost-Effective Conservation: Developing a New Conservation Framework

Incent & reward utility performance

DSM should be at least as profitable as supplying gas.

Award incentives for high performance based on clear metrics

Evaluate DSM program impacts at least every three years (allocate ~ 3% of DSM budgets)

Key Design Elements

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Page 12: All Cost-Effective Conservation: Developing a New Conservation Framework

Integrate gas and electricity DSM programs

Can lower costs, enhance reach, improve market clarity, and lower transaction costs for consumers.

Require utilities to report on collaborations Fuel switching should be required where cost-

effective and reduces GHGs

Key Design Elements

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Page 13: All Cost-Effective Conservation: Developing a New Conservation Framework

Achieving all cost-effective conservation has multiple benefits:

Reduces GHGs (fast, cheap) Cheaper than supply-side Helps manage energy bills Green and local jobs Better homes & buildings

Is DSM Worth It?

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Page 14: All Cost-Effective Conservation: Developing a New Conservation Framework

For more information: To participate:

Toronto Atmospheric Fund Ontario Energy BoardJulia Langer Josh WasylykChief Executive Officer OEB Advisor416-392-0253 [email protected] [email protected]

Rebecca MallinsonTAF Policy [email protected]

TAF webinar available at:http://www.towerwise.ca/ontarios-natural-gas-conservation-framework/

Have Your Say

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