FortisBC 2011 Capital Expenditure Plan August 4, 2010 Kelowna, BC - - PDF document

FortisBC 2011 Capital Expenditure Plan

August 4, 2010 Kelowna, BC

2011 Capital Expenditure Plan

• 9:00

Opening Remarks Joyce Martin

• 9:10

Overview System Development Plan / Integrated System Plan / 2011 CEP Overview Paul Chernikhowsky Overview Paul Chernikhowsky

• 9:30

Generation Ian Finke

• 9:55 Stations

Tim Richter

• 10:15 BREAK
• 10:25 Distribution

Gary Williams

• 10:45 Transmission/Telecommunications

Paul Chernikhowsky

• 11:30 General Plant

Tim Swanson

• 12:00 LUNCH
• 12:45 2009/10 Capital Plan

Operational Improvements Marko Aaltomaa

• 1:05 Demand Side Management

Mark Warren

• 1:45 Final Submission Process

Ludmila Herbst

• 2:00 WRAP-UP

Joyce Martin

2

B-2 FORTISBC – 2011 CAPITAL EXPENDITURE PLAN

EXHIBIT

1

System Development Plan & Integrated System Plan

Overview

Paul Chernikhowsky Director, Engineering Services August 4, 2010 Kelowna, BC

Overview

System Planning Overview

• Why We Need A Plan?

y

• Current Plan Created in

2004

• Minor Updates Annually
• 2005 SDP Projects either

completed or underway

2

completed or underway

2

SDP Station Projects

Completed:

• Nk’Mip (East Osoyoos) Substation
• Big White Substation
• Ellison Substation
• Black Mountain Substation
• Arawana Substation
• Kettle Valley Project
• Ootischenia Substation

In progress:

3

In progress:

• Benvoulin Substation
• Distribution Substation Automation Program
• Okanagan Transmission Reinforcement Project

2012 Integrated System Plan

Transmission / Distribution + Generation + General Plant + Demand Side Management + Resource Plan

4

To be filed in 2011 = 2012 ISP

3

CEP Overview

2011 Plan Future ($million) Generation 18.7 5.3 Transmission & Stations 28.3

• Distribution

23.6

• Telecommunications

7.1

• General Plant

13.6

• Plant & Equipment

91.3 5.3 D d Sid M t 5 8

5

Demand Side Management 5.8

• Subtotal (Additions)

97.1 5.3 Cost of Removal 6.2 0.0 TOTAL EXPENDITURES 103.3 5.3 Annual Operating Savings ($000s) 128 283

Note: 2011 CEP - Table 1.1, page 6

CEP Summary of Expenditures

2011 Plan Future ($million) TOTAL EXPENDITURES 103.3 5.3 Previously Approved 37.1 3.8 CPCN to be Submitted R i d (f l) 66 2 1

6

Remainder (for approval) 66.2 1.5

4

CEP Overview

Category Approval Requested ($millions) Generation 2.5 Transmission & Stations 12.3 Distribution 23.6 Telecommunication 5.6 General Plant 13.0 Plant & Equipment 57 0

7

Plant & Equipment 57.0 Demand Side Management 5.8 Subtotal (Additions) 62.7 Cost of Removal 3.4 TOTAL EXPENDITURES 66.2

Historical Expenditures by Category

160 180

Plant & Equipment 6 yr avg. = $115M

40 60 80 100 120 140 $ millions

$91.3M

8

• 20

2005 2006 2007 2008 2009 2010 2011

Generation Distribution Transmission P&C General DSM COR

5

2011 Capital Expenditure Plan Questions / Comments

1

2011 Generation

Ian Finke Manager , Generation August 4, 2010 Kelowna, BC

FortisBC Generating Plants

Corra Linn

Corra Linn

Upper Bonnington Lower Bonnington South Slocan Kootenay Canal (BCH)

2

2

Generation Projects

1 Major Projects Approval to 2010 2011 2012 Total 2 ($000s) 3 South Slocan Unit 1 Life Extension G-52-05 15,777 41

• 15,818

4 Corra Linn Unit 1 Life Extension G-147-06 13,505 2,433

• 15,938

5 Corra Linn Unit 2 Life Extension C-5-09 3,248 12,373 3,464 19,085 6 Generating Plants Upgrade Station Service Supply G-147-06 3,324 1,309 378 5,011 3 7 Upper Bonnington Spill Gate Rebuild

• 610

1,010 1,620 8 Subtotal Major Projects 35,854 16,766 4,852 57,472 Note: 2011 CEP - Table 2.1, page 13

Corra Linn Unit 2 ULE

• Estimated 2011

expenditures - $12 373 million

• Longer term reliability

$12.373 million

• Low cost energy for

customers

4

• Longer term reliability
• Estimated annual

increase of 8.2 GWh

3

Generating Plants Station Service Supply

• Reliability
• Estimated 2011

expenditures -

• Environmental

expenditures - $1.309 million

5

Upper Bonnington Spill Gate Rebuild

• Run of the river dam
• Spill gates built in 1940

P t d t i d i

6

• Prevent dam overtopping during

flood conditions

• Project driver is dam safety

4

Upper Bonnington Spill Gate Rebuild

• 2 gates, 40,000 lbs each
• 2011 - $0.61 million - Cut

stop log slots to provide isolation

• 2012 - $1.010 million

Refurbish gates

7

Generation Small Sustaining

Minor Projects Approval To 2010 2011 2012 Total ($000s) 9 South Slocan Plant Automation

• 243
• 243

10 South Slocan Fire Panel

• 11

Lower Bonnington and Upper Bonnington Plant Totalizer Upgrade

• 12

Lower Bonnington Powerhouse Plant Windows

• 13

All Plants Minor

• 266

86 351 957

• 85

344

• 266

171 695 957 8 13 Sustaining

• 15

Subtotal Minor Projects 957 1,903

• 429

957 2,332 Note: 2011 CEP - Table 2.1, page 13

5

South Slocan Plant Automation

Temperature Wireless Temperature Pressure Plant PLC Wireless Generation Historian 9 Vibration Smart Motor Overload Humidity Historian Trend Samples

Lower Bonnington Powerhouse Windows

• Estimated at $0.695 million over two

years

• Driven by safety and operations
• Driven by safety and operations
• Originally installed in 1925
• Necessary for plant temperature

control

10

6

LBO and UBO Plant Totalizers

• Estimated project

value $0.171 million

• Existing equipment

is obsolete

• Required to as part
• f Canal Plant

agreement

From old to new

11

Generation Small Projects

UBO Extension Powerhouse Crane Upgrade - $0 241 million Crane Upgrade - $0.241 million All Plants Powerhouse Crane Brakes - $0.231 million

12

7

Upgrade and Life Extension Program Schedule

Plant Upper Bonnington Lower Bonnington South Slocan Corra Linn

Units Completed Unit 5 ULE Unit 6 LE Units 1 & 2 ULE Unit 3 LE Unit 1 & 3 LE Unit 2 ULE Unit 3 LE 2011 Schedule Unit 1 LE 2012 Schedule Unit 2 ULE Total Units 2 3 3 3 13

2011 Generation Questions / Comments

1

2011 Stations

Tim Richter Maintenance Planner August 4, 2010 Kelowna, BC

F.A. Lee

2011 Stations Sustaining

2011 Plan ($000s) ($000s) Station Condition Assessment & Minor Projects 913 Station Urgent Repairs 676 Lambert 230 kV Switch Replacement 535 OKM Load Tap Changers Upgrade 681

2

Addition of Arc Flash Detection to Legacy Metal-Clad Switchgear 538 TOTAL STATIONS SUSTAINING 2,662

2

Station Condition Assessments & Minor Planned Projects

• Annual assessments conducted

Minor Planned Projects dri ers

• Minor Planned Projects drivers:
• Safety, Environment,

Reliability

• Cascade Computerized

Maintenance Management System (CMMS)

• Project & station deficiency

lists

3

• Expenditures of $0.913 million

in 2011

Fruitvale

Station Urgent Repairs

• Repair of station equipment
• Damage caused by:
• Damage caused by:
• Severe Weather
• Vandalism and Theft
• Animals
• Unexpected equipment

failure E dit f $0 676

4

• Expenditures of $0.676

million in 2011

Waterford

3

OKM Load Tap Changer Upgrade

• Reliability
• September 2009 outage
• 2010 Maintenance
• High industry failure

rate

• Failures disruptive
• Expenditures of $0.621

illi i 2011

5

million in 2011

OK Mission

Lambert 230kV Switch Replacement

• Reliability driven
• Reliability driven

replacement

• Installed 1976
• Parts unavailable
• Unreliable
• 7,000 customers

E dit f $0 535

6

• Expenditures of $0.535

million in 2011

A.A. Lambert

4

Add Arc Flash Detection to Legacy Metal-Clad Switchgear

Arc Flash

• Passage of current through air
• Passage of current through air
• Explosive
• High heat and pressure

Arc Flash Detection

• Safety driven
• Fast tripping
• Minimize equipment damage

7

q p g

• Expenditures of $0.538 million

in 2011

OK Mission 8

5

9 10

6

2011 Stations Questions / Comments

1

2011 Distribution Projects

Gary Williams Manager , Network Services August 4, 2010 Kelowna, BC

Distribution Growth

1 Approval 2011 2012 Total 2 ($000s) 3 GROWTH 4 New Connects - System Wide 10,581 10,581 5 Distribution Growth Projects

• 6

Unplanned Growth Projects 948 948 7 TOTAL GROWTH 11,529 11,529

2 Note: 2011 CEP - Table 4.1, page 35

2

Distribution Sustaining

Approval 2011 2012 Total 8 SUSTAINING ($000s) 9 Distribution Urgent Repair 2,274 2,274 10 Distribution Line Condition Assessment 938 938 11 Distribution Line Rehabilitation 2,331 2,331 12 Distribution Line Rebuilds 1,783 1,783 13 Distribution Right-of-Way Reclamation 578 578 Distrib tion Pine Beetle Ha ard Tree

3

14 Distribution Pine Beetle Hazard Tree Removal 1,913 1,913 15 Small Planned Capital 802 802 16 Forced Upgrades and Line Moves 1,456 1,456 17 TOTAL SUSTAINING 12,075 12,075

Note: 2011 CEP - Table 4.1, page 35

Distribution Sustaining

• Condition Assessment
• Rehabilitation
• Rebuilds

4

3

Distribution Line Condition Assessment

The program:

• provides a detailed assessment of each feeder

p

• based on an eight year cycle
• tests and treats poles

Proactively manages:

• risk to employee and public safety
• life extension of distribution plant

Budget of $0 938 million in 2011

5

Budget of $0.938 million in 2011

Distribution Line Rehabilitation

The Program Includes:

• Stubbing poles
• Replacing poles
• Replacing poles
• Replacing crossarms
• Guy wire repair
• Replace Hot Tap Connectors
• Other defects found during

assessments Benefits:

• Employee and public safety

6

Employee and public safety

• Service reliability

Budget of $2.331 million in 2011

4

Distribution Line Rebuilds

Project to replace sections of deteriorated lines. Li ti i l

• Line sections in general poor

condition identified by annual or detailed line patrol or day to day

• perations.

Based on localized safety/reliability of the section identified. Benefits E l d bli f t

7

• Employee and public safety
• Service reliability

Budget of $1.783 million in 2011

Distribution Pine Beetle Hazard Tree Removal

Project involves the removal of hazard trees killed by the Mountain Pine Beetle (MPB). Si ifi t MPB i f t ti i i

• Significant MPB infestation in our region
• Risks:
• Downed conductors
• Fires
• Impact on reliability
• Program addresses public

and employee safety issues environmental

8

issues, environmental concerns and maintaining reliability. Budget of $1.913 million in 2011

5

Small Planned Capital

Project captures off-cycle work required to keep the distribution lines safe and to keep the distribution lines safe and reliable.

• Operational and safety concerns
• n the distribution system related

to damage, clearance problems and aging equipment.

9

Budget of $0.802 million in 2011

Forced Upgrades and Line Moves

Project captures capital upgrades driven by third party requests.

• Relocation of distribution lines due

to highway/road widening initiated by Ministry of Transportation and or municipalities.

• Line moves driven by insufficient

land rights located on private property

10

property. Budget of $1.456 million in 2011

6

Distribution Urgent Repair

Project for repair or replacement of failed equipment. F il th di t ib ti t

• Failures on the distribution system

due to severe weather, vandalism and theft, animals, unexpected equipment failure and vehicle collisions.

• Can cause outages or present risk

that must be addressed in an expedient manner to ensure

11

expedient manner to ensure employee and public safety and service continuity is maintained. Budget of $2.274 million in 2011

2011 Distribution Projects Questions / Comments

1

2011 Transmission Projects

Paul Chernikhowsky Director, Engineering Services August 4, 2010 Kelowna, BC

Transmission Growth Projects

1 Previously Approved Expenditures to 2012 2011 Total

• 5-

Approved Dec 31/10 2 GROWTH ($000s) 3 Okanagan Transmission Reinforcement (OTR) C 08 4 Ellison to Sexsmith Transmission Tie Huth Bus

• 89,923

16,056 105,979

• 667

667

2

5 Huth Bus Reconfiguration 6 Total 373

• 4,674

5,047 21,397 90,296

• 111,693

Note: 2011 CEP - Table 3.1, page 20

2

Ellison to Sexsmith Transmission Tie

• Completion of a 138 kV

transmission loop in northern Kelo na northern Kelowna

• 46 Line outage will affect:
• ~10,000 customers
• ~65 MW of load
• Load growth about 1.5

MW per year

3

• Will provide N-1 capability

to a growing area

• $0.667 million in 2011

Ellison to Sexsmith Transmission Tie

5 k t f ll i ti 5 km route follows existing alignment adjacent to Hwy 97

4

Potential reuse of existing infrastructure

3

Huth Station Upgrade

• Major supply point for South Okanagan,

combined peak load over 80 MW in 2010

• Normal supply via one of two 63-kV lines

from RG Anderson, both lines cannot be

• perated in parallel
• Large amount of load is exposed to N-1
• utages
• Need first identified in 1998 & again in

2005 SDP

5

• Engineering/estimating approved in

2009/10 CEP

• Construction was deferred until 2011

Huth Station Upgrade

• Project Scope:
• Addition of three 63

kV circuit breakers

• Fibre-optic

communications from Huth to RG Anderson

• Protection

modifications for

6

parallel line operation

• Expenditures of $4.674

million in 2011

4

Transmission Sustaining

7 Previously Approved Expenditures to Dec 31/10 2011 Total 8 SUSTAINING ($000s) 8 SUSTAINING ($000s) 9 Transmission Line Urgent Repairs

• 468

468 10 Transmission Line Condition Assessment

• 443

443 11 Transmission Rehabilitation

• 1,518

1,518 12 Right-of-Way Enhancements

• 402

402 13 Right-of-Way Reclamations

• 534

534

7

g y 14 Transmission Pine Beetle Hazard Tree Removal

• 242

242 15 Total

• 3,607

3,607

Note: 2011 CEP - Table 3.1, page 20

Transmission Line Rehabilitation

• Remediation of defects identified in

previous years’ assessments

• In 2011 rehab lines assessed during

2009/10

• Also includes pole stubbing,

replacement of poles or cross-arms and other miscellaneous repairs

• Project cost estimates based on

historical information

• Required to ensure both safety and

reliability

• Expenditures of $1.518 million in 2011

8

5

2011 Transmission Projects Questions / Comments

1

2011 Telecommunications, SCADA, Protection & Control

Paul Chernikhowsky Director, Engineering Services August 4, 2010 Kelowna, BC

Telecommunications

This does not include corporate (business) communications:

• Desk phones and faxes
• Cell phones
• Wide-area network (WAN)
• Computers for business purposes
• SCADA Master Station hardware and software

Potential synergies – operational communications systems can also be used to provide corporate communications

2

2

Telecommunications

Operational Telecommunications I l d Includes:

• Teleprotection
• SCADA communications
• Remote diagnostic access
• Remedial Action Schemes

3

Telecommunications / SCADA / P&C

1 Approval To 2010 2011 2012 Total 2 Growth ($000s) 3 Distribution Substation Automation Program C-11-07 4,966 1,540

• 6,506

4 Kelowna 138 kV Loop Fibre Installation

• 3,382
• 3,382

5 Grand Forks to Warfield Fibre Installation

• 667
• 667

6 Subtotal 4,966 5,589

• 10,555

7 Sustaining 8 Lee to Vernon 230 kV Line Protection

• 1 286
• 1 286

4 8 Line Protection Upgrade

• 1,286
• 1,286

9 Communication Upgrades

• 265
• 265

10 Subtotal

• 1,551
• 1,551

11 Total 4,966 7,140

• 12,106

3

FortisBC Fibre-Optic Network

5

Kelowna 138-kV Loop Fibre Installation

6

4

Grand Forks to Warfield Fibre Installation

7

Lee-Vernon Protection Upgrade

Kelowna-area transmission system Two supply points: pp y p

• North – BC Hydro Vernon
• South – FortisBC Penticton

Communications equipment is 30 – 40 years old Project: replace all relays and communications equipment

8

communications equipment

• More reliable
• Self-monitoring
• Improved power-quality
• Expenditures of $1.286 million

in 2011

5

2011 Telecommunications, SCADA, Protection &Control Questions / Comments Questions / Comments

1

Operational Improvements

Marko Aaltomaa Manager , Network Services August 4, 2010 Kelowna, BC

Definitions

• SCC: FortisBC System Control Center
• SCADA (Supervisory Control and Data Acquisition): Control

( p y q ) system used to control & monitor the power system

• PIC: The Person in Charge or entity designated to operate and

control an assigned portion of the power system and to issue permits and protection guarantees for any work on the power system.

• Power System Mimic Diagram: a diagram used by the PIC to

2

y g g y show the real time status of the power system and to track permits and protection guarantees.

• GIS: Geographic Information System

2

Summary of 2009/10 Capital Projects

• Distribution Substation Automation Program

– Majority of stations complete by end of 2010 Majority of stations complete by end of 2010 – Provides remote control and monitoring from the SCC – Data Historian implemented and in service

• System Control Centre SCADA Enhancements

– Interfacing of SCADA and ArcFM GIS system Allowed for Distribution PIC to be transferred to SCC

3

– Allowed for Distribution PIC to be transferred to SCC – SCADA Web services implemented and in service

• Historically,

someone would h l f

Slocan

Substation Automation

have to travel for any switching or to

• btain operational

information at the station

• Ability to switch

remotely and

Slocan Approximately 68 km

y Operational information is now available at SCC

Castlegar

4

3

Substation Automation

Summary of GNR’s issued in 2010 on substations automated in 2009

Station # of GNR’s

• Est. Time

Total Man hours BLU 115 0.5 hr 57.5 hr OKM 13 0.5 hr 6.5 hr PAS 12 1.5 hr 18 hr VAL 29 2 hr 58 hr

• Estimated Time is based on historical switching requirements

5

VAL 29 2 hr 58 hr TOTAL 140 hrs

Substation Automation

6

4

Substation Automation Data Historian

7

SCC SCADA Enhancements

• Interfacing of SCADA and ArcFM GIS System
• ArcFM GIS is the source for the distribution mimic in
• ArcFM GIS is the source for the distribution mimic in

SCADA

• Allowed for transfer of distribution PIC to SCC
• SCC is now PIC of the entire system
• SCADA Web services in service

All fi ld t h t l ti SCADA i f ti

• Allows field to have access to real time SCADA information
• SCADA Web replaces historical distribution mimic in the

field

8

5

SCC SCADA Enhancements

• Historical Distribution mimic/PIC maps in districts

9

2011 Operational Improvements Questions / Comments

1

2011 General Plant

Tim Swanson Manager, Information Systems August 4, 2010 Kelowna, BC

General Plant

1 Approval to 2010 2011 2012 Total 2 ($000s) 3 Mandatory Reliability G-67-09, 2 000 595 2 595 3 y y Standards Compliance , G-162-09 2,000 595

• 2,595

4 Vehicles

• 2,000
• 2,000

5 Meter Inventory

• 213
• 213

6 Information Systems

• 5,550
• 5,550

7 Telecommunications

• 358
• 358

8 Buildings

• 1,244
• 1,244

9 Kootenay Operations Centre

• 485
• 485

10 Kelowna Long Term 489 489

2

10 g Solution

• 489
• 489

11 Furniture and Fixtures

• 176
• 176

12 Tools and Equipment

• 601
• 601

13 PCB Environmental Compliance

• 1,852
• 1,852

14 Total 2,000 13,563

• 15,563

2

Mandatory Reliability Standards (“MRS”)

• Completion of the MRS implementation to meet

compliance

• Expenditures of $0.595 million in 2011

3

Vehicles

4

3

Long Term Planning

• Fifteen year projection for Vehicles
• The average annual expenditure is $2.02 million over term

$1.50 $2.00 $2.50 $3.00 millions

Projected Fleet Capital Expenditures

Plan AVG

5

$0.00 $0.50 $1.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

$m Year AVG

Planned Vehicle Purchases

Category 2011 Category 2011 1 Heavy Fleet Vehicles 3 2 Service Vehicles 17 3 Off-Road Vehicles/Trailers 3 4 Total Units 23 5 Total Replacement Cost ($000s) 1,900 6 Contingency ($000s) 100

6

7 Total Cost ($000s) 2,000

Note: 2011 CEP - Table 6.2(b), page 57

4

Information Systems

7

Information Systems

2009 2010 2011 ($000s) 1 Infrastructure Upgrade 733 794 939 2 Desktop Infrastructure Upgrade 783 847 1,010 3 SAP & Operations System Enhancements 1,252 953 1,198 4 AM/FM Enhancements 192 423 493 5 Customer Service Systems Enhancements 871 794 904

8

6 SCADA Enhancements 800 688 528 7 HR Payroll Conversion 478 8 TOTAL 4,631 4,499 5,550

5

Infrastructure Upgrades

• Maintain up to date productive

infrastructure

2009 2010 2011 ($000s)

• Balance value and productivity
• Taking advantage of technology

to manage cost

1 Infrastructure Upgrade 733 794 939 2 Desktop Infrastructure Upgrade 783 847 1,010

682

Laptops & Desktops Servers & Storage Devices

9

2004 2005 2006 2007 2008 2009 2010 2011 40 156 118 157 73 81 50 50 424 560 596 634 655 667 682 670 Units by Age Still in Service Total Units 2004 2005 2006 2007 2008 2009 2010 2011 5 14 7 22 5 8 6 7 33 44 51 68 70 74 74 71 Units by Age Still in Service Total Units

Infrastructure Upgrades

Multifunction Printers

27 40 40 44 44 46 47 47 Units by Age Still in Service Total Units

10

2004 2005 2006 2007 2008 2009 2010 2011 3 15 10 12 4 2 1 6

6

Business System Upgrades & Enhancements

• Enhancing existing systems –

SAP, CIS, ESRI, etc.

• Based on business

requirements and efficiency

2009 2010 2011 ($000s)

11

3 SAP & Operations System Enhancements 1,252 953 1,198 4 AM/FM Enhancements 192 423 493 5 Customer Service Systems Enhancements 871 794 904

Business System Upgrades & Enhancements

12

7

SCADA Upgrades & Enhancements

• SCADA systems enhancements
• Integral to safety and reliability

2009 2010 2011

13

($000s) 6 SCADA Enhancements 800 688 528

HR Payroll Conversion

• Conversion of payroll service provider from ADP to Ceridian
• Limited earnings and deduction codes from ADP
• No solutions available from ADP
• Estimated expenditures in 2011 - $0.478 million

14

8

Buildings

15

Buildings

1 2011 2 ($000s) 3 Warfield Operations Drainage 173 4 SCC UPS Replacement 115 5 Racking Upgrades 130 6 Emergency Building Upgrades 106 7 Projects under $100,000 720 8 Total 1,244

Note: 2011 CEP - Table 6.4, page 66 16

1

Furniture & Fixtures

2011 2 ($000s) 3

Furniture & Fixtures

176

9

Long-Term Facility Solutions

• Kootenay Operations

Centre

• Estimated expenditures

in 2011 - $0.485 million

17

Long-Term Facility Solutions

• Kelowna Operations Centre
• Estimated expenditures in

2011 - $0.489 million

18

10

Tools and Equipment

1 2009 2010 2011 2 ($000s) 3 Tools & Equipment 572 575 601

19

PCB Environmental Compliance

• PCB regulations – Canadian Environmental Protection Act
• Compliance by 2014 for station equipment

p y q p

• 5 year program
• Equipment outages
• Estimated expenditures in 2011 -

$1.852 million

20

Equipment outages

• Customer impact

11

2011 General Plant Questions / Comments

1

2011 Demand Side Management Plan

Mark Warren Director, Customer Service August 4, 2010 Kelowna, BC

2011 Demand Side Management Plan Overview

• Historical DSM
• Development of 2011 DSM

Plan – Principles – Scope – Key inputs DSM P O ti

2

• DSM Program Options
• 2011 DSM Plan

2

Energy Savings and Cost

3

DSM Plan Principles

The 2011 DSM Plan shall be:

• Customer focused
• Cost effective
• Inclusive of best practices
• Compliant with DSM

Regulations

4

3

DSM Plan Scope

In Scope

• Energy and Demand Conservation

gy Measures

• Codes and Standards
• Small Renewable Generation
• Community-Based Awareness

Programs Out of Scope

5

Out of Scope

• Conservation Rates
• Fuel Switching

Key Inputs to DSM Plan

• 2007 BC Energy Plan

Energy plan DSM Regs

• DSM Regulations
• End-use surveys
• Conservation and Demand Potential

Review

• Best practices from research and
• ther utilities
• Public, stakeholder and First Nation

2011 DSM Plan Energy plan DSM Regs Survey Potential Scenarios

6

, consultation

• DSM Advisory Committee feedback

Public consultation

4

Program Options

Low Option Medium Option High Option 2011 Costs $5,021,471 % Load Growth 36% Total Resource Cost (TRC) ≥1.5 Appliances Consumer Electronics Residential Programs Consumer Electronics Lighting Heating / AC Systems Building Envelope Commercial Programs Lighting Street lighting Municipal Infrastructure Refrigeration Computer servers / networks Weatherization Building Envelope Lighting P & F 7 Industrial Programs Pumps & Fans Refrigeration Motor Rewinds Compressed Air Energy Management Information Systems Irrigation Programs Pump Upgrade Pivot Systems Low Income & Rental Programs First Nations Program Energy savings kits (ESK) Incentive Levels 25%

Program Options

Low Option Medium Option High Option 2011 Costs $5,021,471 $9,302,377 % Load Growth 36% 51% Total Resource Cost (TRC) ≥1.5 ≥1.0 R id ti l P Appliances Consumer Electronics Li hti Low Option Programs + Residential Programs Lighting Heating / AC Systems Building Envelope p g Enhanced Appliances Commercial Programs Lighting Street lighting Municipal Infrastructure Refrigeration Computer servers / networks Weatherization Building Envelope Low Option Programs + Enhanced Municipal Infrastructure Enhanced lighting Lighting Pumps & Fans 8 Industrial Programs Refrigeration Motor Rewinds Compressed Air Energy Management Information Systems Same Irrigation Programs Pump Upgrade Pivot Systems Same Low Income & Rental Programs First Nations Program Energy savings kits (ESK) Low Option Programs ESK Installation Energy evaluation Incentive Levels 25% 40%

5

Low Option Medium Option High Option 2011 Costs $5,021,471 $9,302,377 $20,050,282 % Load Growth 36% 51% 93% Total Resource Cost (TRC) ≥1.5 ≥1.0 ≥0.9 R id ti l P Appliances Consumer Electronics Li hti Low Option Programs + Medium Option Programs + Solar PV

Program Options

Residential Programs Lighting Heating / AC Systems Building Envelope p g Enhanced Appliances Solar Hot Water Residential Wind Commercial Programs Lighting Street lighting Municipal Infrastructure Refrigeration Computer servers / networks Weatherization Building Envelope Low Option Programs + Enhanced Municipal Infrastructure Enhanced lighting Medium Option Programs + Solar PV Lighting Pumps & Fans 9 Industrial Programs Refrigeration Motor Rewinds Compressed Air Energy Management Information Systems Same Same Irrigation Programs Pump Upgrade Pivot Systems Same Same Low Income & Rental Programs First Nations Program Energy savings kits (ESK) Low Option Programs + ESK Installation Energy evaluation Medium Option Programs + Home retrofits Incentive Levels 25% 40% 50%

Small Renewable Generation

Year Renewable measure TRC ≥1.0

• Residential Wind

2013

• Residential Solar Hot Water 2013
• Residential Photovoltaic

2018

• Commercial Photovoltaic

2018

10

6

Summary of 2011 Plan

Sector/Component Savings (MWh) Budget ($000s) TRC B/C (MWh) ($000s) B/C Residential 16,422 3,636 1.6 General Service 13,940 2,118 2.5 Industrial 9,360 613 3.6 Program sub-total 39,7922 6,367 2.1 Supporting Initiatives 725 Planning & Evaluation 750

11

g Total Expenditure 39,722 7,842 1.9 Net (of tax) Expenditure 5,764

Supporting Initiatives

Component Details Budget ($000s) Ed ti

• Sponsorship of ENGO programs (schools)

250 Education Sponsorship of ENGO programs (schools)

• Support and sponsorship of trades training

250 Awareness

• Direct and face-to-face marketing
• Collateral
• Product and sample give-aways
• Targeted advertising
• Public relations
• Partnerships
• Social networking

200 Codes & Standards Support

• Support of policy development initiatives

25 12 Community Engagement

• Support and sponsorship of community energy

efficiency programs, workshops and events

• Support and sponsorship of community events
• Public consultation

250 Total 725

7

Cost Allocation

Budget Allocation 2010 2011 Budget Allocation 2010 2011 Incentives 52% 62% Program administration 31% 19% Conservation culture 4% 3% Community energy planning 0% 3% Trades training 0% 1% Education 1% 2% 13 Planning and Evaluation 13% 10%

2011 Demand-Side Management Plan Questions / Comments

Regulatory Timetable

• Intervenor Registration

Wednesday, August 11

• Comments on Regulatory Process

Thursday, August 12 C i i IR N 1 Th d A t 12

• Commission IR No. 1

Thursday, August 12

• Intervenor Participant Assistance Budgets

Friday, August 13

• FortisBC IR Response

Thursday, August 26

• Commission IR No. 2 / Intervenor IR No. 1

Wednesday, September 8

• FortisBC IR Response

Wednesday, September 22

• Proposed:
• FortisBC Final Submission

Wednesday, September 29

• t s C

a Sub ss o ed esday, Septe be 9

• Intervenor Final Submissions

Wednesday, October 6

• Oral Argument (Commission Panel present)

Wednesday, October 13