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2012 Integrated Resource Plan Appendix 9A - DSM Implementation Plan
Page 9A-i May 2012
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
Sector Enabling Activities
Industrial
Power Smart Partners, Transmission
Power Smart Partners , Distribution
New Plant Design
Load Displacement
Sector Enabling Activities
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.
2012 Integrated Resource Plan Appendix 9A - DSM Implementation Plan
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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.
2012 Integrated Resource Plan Appendix 9A - DSM Implementation Plan
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.
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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.
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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
2012 Integrated Resource Plan Appendix 9A - DSM Implementation Plan
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.
2012 Integrated Resource Plan Appendix 9A - DSM Implementation Plan
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.
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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.
2012 Integrated Resource Plan Appendix 9A - DSM Implementation Plan
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.
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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.
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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
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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.
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Energy-Focused DSMTable 2. Cumulative Associated Capacity Savings from F2012 at Customer Meter (MW)
Codes and StandardsResidentialCommercialIndustrialSub-total
Rate StructuresResidentialCommercialIndustrialSub-total
DSM ProgramsResidentialCommercialIndustrialSub-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
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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
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Energy-Focused DSM Table 3. Total BC Hydro Costs ($ Million)
Rate StructuresResidentialCommercialIndustrialSub-total
DSM ProgramsResidentialCommercialIndustrialSub-total
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
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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
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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
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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.
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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 $118
1 Levelized costs will differ from those provided in Chapters 3 and 6 as they do not include transmission and distribution losses and are calculated using a different methodology.2 Gross costs net of non-energy benefits, natural gas benefits, and generation, transmission and distribution capacity benefits.
Gross Levelized Costs Net Levelized Costs2
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Capacity-Focused DSMTable 1. Cumulative Capacity Savings since F2012 at Customer Meter (mid) (MW)
F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024
Industrial Load Curtailment 0 38 114 190 238 267 286 286 286 286 286 286 286
Capacity ProgramsResidential 0 13 38 63 87 99 99 99 99 99 99 99 99Commercial 0 2 8 17 27 31 31 31 31 31 31 31 31Industrial 0 3 16 36 54 61 61 61 61 61 61 61 61Sub-total 0 19 62 116 168 191 191 191 191 191 191 191 191
Total 0 56 176 306 407 458 477 477 477 477 477 477 477
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Capacity-Focused DSMTable 1. Cumulative Capacity Savings since F2012 at Customer Meter (mid) (MW)
Industrial Load Curtailment
Capacity ProgramsResidentialCommercialIndustrialSub-total
Total
F2025 F2026 F2027 F2028 F2029 F2030 F2031 F2032
21 Year Total: F2032
286 286 286 286 286 286 286 286 286
99 99 99 99 99 99 99 99 9931 31 31 31 31 31 31 31 3161 61 61 61 61 61 61 61 61
191 191 191 191 191 191 191 191 191
477 477 477 477 477 477 477 477 477
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Capacity-Focused DSMTable 2. BC Hydro Costs ($ 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
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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
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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.
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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.
Appendix 9A - Attachment 32012 Integrated Resource Plan
Page 1 of 3 May 2012
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
Appendix 9A - Attachment 32012 Integrated Resource Plan
Page 2 of 3 May 2012
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
Appendix 9A - Attachment 32012 Integrated Resource Plan
Page 3 of 3 May 2012