# Presentation: 328302

## Integrating Energy Efficiency into Utility Planning

- Energizing the Northwest — Today and Tomorrow
- September 28th, 2004

- Derek Henriques
- BC Hydro - Power Smart

## BC Hydro Profile

- Third largest electric utility in Canada
- 4,400 employees
- Third lowest rates in North America
- 1.6 million customers
- Generating Capacity 	~	11,000 MW (90% hydro generation)
- Transmission  	~	18,000 km
- Distribution	~	56,000 km
- Average rate 5 cents/kWh (Canadian)
- Financials effective March 31/04
- Net Income - $98 million
- Revenues - $3,424 million
- Domestic Revenues - $2,553 million
- Trade Revenues - $871 million

## Key Elements of Success

- Effective Energy Efficiency Policy Framework
- A thorough knowledge of opportunities and inventory of the conservation resource
- Integrated Electricity Planning
- Bundle programs into portfolios to achieve economies of scale
- Share risks and benefits between all parties
- Think long term when making DSM investments
- Use both acquisition and market transformation strategies
- Ensure consistent evaluation of demand side and supply side options

## BC Energy Policy

- _Key Guidelines Energy Efficiency / Conservation_
- Establish new rates allowing large electricity consumers to choose a supplier other than the local distributor
- Establish rate structures that provide better price signals to large electricity consumers for conservation and energy efficiency
- The BC Government will update and expand its Energy Efficiency Act, and will work with the building industry, other governments and stakeholders to improve energy efficiency in new and existing buildings
- The Utilities Commission Act will be amended to remove a disincentive for energy distributors to invest in conservation and energy efficiency

## Conservation Potential Review

- A complete review of the conservation potential in BC completed in 1994 and updated in 2003
- Resource achieved to date: 3,500 GWh or 400 avMW
- Target to achieve 35% of the 10,000 GWh required to support load growth by F2014 through conservation
- Target supported by energy acquisition and market transformation initiatives, and by building codes and efficiency standards
- Additional portfolios of conservation are available in the integrated electricity plan

## Barriers to Cost Effective Energy Efficiency Investments

- Availability of more efficient products and processes
- Awareness that more efficient products or processes exist
- Accessibility to the products or processes where the end user needs it
- Affordability relative to the competing but less efficient options
- Acceptability of the performance by the end user

## Critical Tools

## Examples of Programs

- The following are examples of programs operated by BC Hydro

## The Compact Fluorescent Light Bulb Giveaway

**The Opportunity**: Lighting constitutes the largest energy savings opportunity in our residential segment. Compact Fluorescent Light Bulbs(CFLs) are an existing technology, widely used in other parts of the world, that use up to 75% less electricity and last up to eight times longer.
**The Challenge:** Prior to 2002, CFLs had a very low share of market, minimal shelf space, and low consumer awareness/understanding.
**The Solution:** Encourage our customers to try the product, learn about the benefits - and encourage  retailers and manufacturers to support it with pricing, selection and availability.

## The Offer: Two FREE CFLs, and a $5 value toward additional bulbs. Pick-up at participating retailers when the Power Smart Outreach Team is on location (customers learn about the benefits of CFLs first hand from BC Hydro representatives)
Communications: Direct Mail and Advertising.

**Communications:** Direct Mail and Advertising.

- The Compact Fluorescent Light Bulb Giveaway

## Refrigerator Buy-Back Program

**The Opportunity**: Thousands of British Columbians have a second, older, inefficient (and often under-used ) fridge humming away in the basement or back porch.
**The Challenge**: An inefficient second fridge can add up to 10% onto a customer’s annual usage and electricity costs. We had to stop the waste and acquire that energy back from our customers by getting those inefficient old refrigerators out of circulation.
**The Solution**: Provide a financial incentive to customers to get rid of the fridge - and make it easy for them.

## Refrigerator Buy-Back Program

**The Offer**: In 2002, we re-introduced our  Refrigerator Buy-Back Program. Customers received $30 for their old refrigerator, free pick up, and environmentally sound recycling.
**Communication**: Advertising and appliance retailer point-of-sale.
**Results:** Over 35,000 old refrigerators have been taken out of circulation since late 2002 - representing an estimated 32 GWhs - or enough energy to power 3,200 homes.

## Seasonal LED Program

**The Opportunity**: Seasonal light emitting diode lights (SLEDs) use 95% less energy. The holiday season also coincides with our highest demand period, making SLEDs - combining capacity and energy savings advantages.
**The Challenge**: The market didn’t exist. Prior to 2003, SLEDs were not available for sale in Canada.
**The Solution**: In 2002, BC Hydro acquired limited product and promoted the technology to raise awareness. In 2003, we worked with manufacturers to bring the lights to market for the 2003 holiday season. We identified a new technology, recognized its potential, and accelerated its appearance in the marketplace.

## Seasonal LED Program

**The Offer:** Combined with Natural Resources Canada to offer $5 off coupon for sale of SLED light strings.
**Communication**: Point-of-sale and newspaper.
**Results:** Over 400,000 SLEDs sold - double the sales forecast.
- A “buzz” in the marketplace - all participating retailers sold out.
- The beginning of Market Transformation - without the active participation of BC Hydro and our partners in the distribution channel, it’s unlikely that SLEDs would have appeared in Canadian retail stores before the end of this decade.

## Traffic Light Exchange Program

**The Opportunity:** Prior to 2002, BC municipalities and the B.C. Ministry of Transportation used incandescent bulbs for traffic light signals. Light emitting diode (LED) signals use about 90% less energy, are brighter and last longer (reducing maintenance costs).
**The Challenge****:** With numerous priorities competing for limited capital budgets, energy efficiency was not always on people’s radar screens.
**The Solution:** Partner with local and provincial governments to reduce the capital requirement for retrofits.

## Traffic Light Exchange Program

**The Offer**: BC Hydro Power Smart pays for 50% of the material and installation costs  of the retrofit, the customer repays the other 50% over 5 years - with no financing charges.
**Communication:** Direct selling through our Key Account Managers.
**Results:**
- In two years, 99% of traffic light intersections in our service area have been converted to LEDs.
- Savings of over $1.4 Million in electricity costs alone (in most cases, maintenance savings exceed electrical savings!). That’s money that can be used on other priorities.
- To date, the program has yielded savings of about 29 GWhs - enough to power 2,900 homes each year.