POWER.HOUSE. Residential Solar Storage Project

Neetika Sathe VP, Corporate Development & Smart Grid Technologies

POWERSTREAM INC.

2015-2020 Conservation First Framework (CFF)

• 7 TWh provincial target for LDC-delivered CDM is double previous framework’s target on annualized basis

• LDCs allocated 6-year target and budget by IESO • PowerStream’s target of 535 GWh is equivalent to 6% reduction in annual

energy throughput over 6 years

• Financial incentives available for achieving target and for coordinating with other LDCs in Joint CDM Plans

• LDCs must meet their assigned target through IESO-funded CDM programs

• Provincial programs • Local/Regional programs • IESO-funded pilots

CDM Plan implementation update

• Nov 2014: First LDC to enter into Energy Conservation Agreement w/ IESO

• Dec 2014: PowerStream & Collus PowerStream first to submit a 6-year CDM Plan

• Feb 2015: First IESO-approved 6-year CDM Plan

• July 2015: Transitioned to Conservation First Framework

• Aug 2015: First LDC to receive IESO approval for Local Program (Business Refrigeration Incentive Program)

Behind the meter solution

Solar Integration

Grid Interactive

Outage Management

Residential Solar Storage Pilot

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IESO Conservation Fund for 20 homes: • $500,000 grant to support pilot for 20 targeted homes in PowerStream territory • 5 KW solar array; Sunverge unit- 6.8 KW/11.4 KWH battery and EMS • Aggregation of distributed assets to create a Virtual Power Plant • Technology partner: Sunverge • Installation partner: RBI

Key Pilot Objectives

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Business Model Definition – Customer vs Utility Ownership, Financing models, etc.

Required Processes – To Support Business Model Implementation

Technology Evaluation – Operational flexibility, installation, O&M, etc.

Customer Value – Dispatch model, bill reduction, value of resiliency

Grid Value – CDM Benefit, Capital deferral, congestion management, Ancillary Services

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Overview

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Program Benefits: Immediate backup power in case of an

outage Power your home with clean energy Reduce your electricity bill, up to $100 per

month!

Program Details: • Upfront payment towards installation $3500 • Monthly service fee $20 over 5 year contract

Available to only 20 PowerStream customers

Introducing POWER.HOUSE.

Power your home with solar… even after the sun goes down!

Customer Acquisition Strategy

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System benefits: customers on feeders with congestion, voltage, resiliency, issues

Energy profiling: identify load profiles that match well with system

Physical Limitations: requirements for solar, roof configuration

Customer Demographics: income, age

Enrollment Process

Initial customer contact and screening

Deal memo reviewed and signed

Preliminary home inspection passed

Structural Engineering review passed

Participation Agreement Signed

Systems installed

Customer Enrollment

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Enrollment Statistics

7 customer events 112 registered guests 52 deal memos signed + $1000 cheques Overwhelmingly positive response

during presentations 20 customers enrolled in 30 days

Direct Mail 35%

Referral 5%

PS Staff 3%

Media 4%

Word of Mouth

7%

Website 13%

Email blast 33%

Lead Sources

Installation Progress Racking design + building permits

completed 12 SIS units delivered 9 PV systems complete 5 unit energized awaiting ESA inspection

Key Learnings

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Challenges Achievements Net Metering Implemented Ontario’s first Net Metering on TOU

billing process (currently manual, provides blueprint for future adoption)

A/C Disconnect Switch Launched internal dialogue to eliminate A/C disconnect for DG projects <10kw – PS would be first in Ontario and would facilitate DER deployment

Insurance Created awareness within the insurance industry of new initiatives and identified friendly insurers.

Permits Educated municipal planning departments –set new precedents

Customer Communication Tightened protocols and created streamlined processes

Site Inspections/Prequalifying homes Developed best practices to accelerate and improve qualification and site inspection

Questions?

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HORIZON UTILITIES CORPORATION and horizon UTILITIES Looking beyond… & Design are registered trade-marks in Canada of Horizon Holdings Inc. and are used under license by Horizon Utilities Corporation.

Take Charge, Save Energy, Earn Rewards - Pilot

January 15, 2016

Brian Smith – Horizon Utilities Chief Conservation Officer Eric Feagler – Exec. VP Client Solutions Simple Energy

2 Project Goals

• Test a Social Benchmarking digital engagement solution for up to 50,000 residential customers

• Test energy savings potential from Social Benchmarking

• Test customer engagement and response to a Social Benchmarking solution

• Test CDM program cross promotion capability

• Gain a better understanding of behavioural based savings opportunities

3 Project Considerations/Lessons Learned

• Compliance in the Digital Age

• Privacy Rules – MFIPPA and FIPPA:

• CASL - http://fightspam.gc.ca/eic/site/030.nsf/eng/home

• AODA - https://www.ontario.ca/page/accessibility-laws

• Customers with Email – Lessons learned

4 Customers Like & Want to Earn Rewards

5 Don’t take our word for it….

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“I think for me, the

benefit was the first

reward I received. I

actually got something

in return for my effort,

and that in itself has

made it fun.”

– Wendy M.

“It helped me to visually see where I was using energy and

gave me tips on how to change what I was doing to become

more energy efficient.” — Simmon K.

“The site is very interactive and fun to use. It has helped us be more mindful of how much energy we

use and how to be more efficient.” - Ken G.

“I would like to be a part of this to help lower my energy usage costs

and to be a part of this positive program.” ~Candice B

“Thank you very much for this “Take Charge” program…it truly has

helped me to better understand my usage of electricity in the

household. I am finding all kinds of ways to save money.”

~Susan D

6 Next Steps

• Final evaluation of Energy Savings from the Pilot February 2016

• Approval received for a Local Program December 2015

• Develop methodology with our partner Simple Energy to determine persistent savings from consumer behavior in purchasing and installing real measures vs behavior based savings

• Examine expanding the Social Benchmarking platform to support consumer purchases of real measures.

7 Commercial Results Customer Actions Simple Energy Enablement

Positioning Horizon Utilities as the Primary Energy Resource

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Underutilized Assets

Brand

Data

Channel

Customers

Maximizing Customer Lifetime

Value

Horizon Assets

Increasing Penetration of Utility Enabled

Products and Services

Cross Program Enrollment

Social Benchmarking

Customer Programs

Energy Saving Measures

Customer Engagement Platform:

Motivation

Marketplace: Streamlined Action

Establishes the “Platform” for Utility-Customer Engagement

Time

LTV

8 Engaging Customers through a Consumer-centric Experience

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Engage with Targeted Communications

Earn Points for Engagement Activities

Enroll in Programs, Purchase Energy Saving Products

Redeem Points for Rewards

Motivational Mix

9 Micro-targeted Communications

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Customers: Receive relevant and timely

information

Horizon Utilities: Drives program participation and

increases program results

Customers receive a communication from their utility that is data-driven, personalized and beautiful

10 Energy Insights

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Customers: Feel in control and better

understand their energy use

Horizon Utilities: Lowers Cost to Serve by empowering customers

to self help

Personalized Energy Insights dashboard, where customers can see how their energy usage compares to that of others in the community, view personalized tips and earn rewards for saving energy.

11 Home Insights

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Customers: Increasingly personalized experience,

including more targeted tips, program offers, product offers, etc.

Horizon Utilities: Interactive animation improves

capture of home information Optimized program experience

Home Insights is a fun and simple way for customers to tell their Utility more about their home energy characteristics in exchange for a more personalized energy management experience.

12 Marketplace

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Customers: Receive and act upon personalized

product recommendations from their Utility

Horizon Utilities: Increase the efficacy of the overall

Energy Efficiency portfolio and further position the Utility as a

trusted energy partner

Customers can browse, compare and purchase energy-related products and services, and get instant rebates, on a fully featured and Utility-branded ecommerce platform.

Increased interest in CHP technology

Need for both consistent heat and electricity

Improved economics and availability of pre-packaged, modular systems as low as 20 KW

Now opportunities for relatively small-scale private investment and ownership in CHP.

CHP will greatly assist in achieving CDM Targets

Agressive targets for CDM

Need for recognition, awareness and good news stories to inspire more projects

Need to share best practises between Gas/LDC

LDC’s have opportunities to create a positive image in the market place in assisting in innovative cost saving solutions

Identify customer base with loads of 100 KW to 1.5 MW

Assist clients in selection of proven technologies and engineering solutions to implement

Identify load profiles to ascertain CHP potential Ongoing involvement and interaction with CDM

Program Advisors for dates, milestones, notices Establish internal go–no go to approve DES Potential Skin in the Game is important

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Shift to a proactive customer engagement strategy Customer engagement – Top down approach Reaffirm the decision for DES will go to implementation Inform and update on project milestones Continuity with all stakeholders Client buy in and responsibility Report and identify potential financial implications Raise the profile of the project with COO , CFO, CEO

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Potential savings Potential costs Future projects Positive PR and Awareness

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The assessment purpose is to evaluate the potential for the installation of a (CHP) for the facility. The assessment looks at the following factors: Determine the baseload/thermal load of the facility to size up the generation unit. Potential specifications of the unit. Potential savings Potential costs * Please note that there is no $ investment in this process for the customer

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A Business case can be generated as to the viability of LDC involvement in whole or in part for future increased revenues.

Municipal facilities have prime CHP opportunities

Opportunity to walk the talk

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Steps: audit, implement, measure learn and adapt Develop detailed plan and launch - in collaboration Build a positive working relationship with client’s team Adapt, leverage client’s existing tools and practices Identify and address (unique) needs of key stakeholders Develop/convey positive, clear, simple, relevant messages

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The goal: To create positive awareness, appreciation and engagement for all projects, enhance ‘partner’ reputations and stimulate business growth for LDCs

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