All Cost-Effective Conservation:Developing a New Conservation Framework for Ontario’s Natural Gas Utilities
July 20141
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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Conservation
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Energy Efficiency
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Demand-Side Management (DSM)
Terminology
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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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OEB DSM Working Group
Draft DSM Guideline document expected mid-August
Opportunity to submit comments
Process
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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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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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Non-participants experience rate impacts
Therefore, increase participation (i.e. pursue all cost-effective DSM)
Bill Benefits Exceed Rate Impacts
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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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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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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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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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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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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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