Attached is BC Hydro s annual filing of the Report on Demand-Side Management Activities for the 12 months ending March 31, 2012.

Transcription

1 Janet Fraser Chief Regulatory Officer Phone: Fax: July 0, 01 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, BC V6Z N Dear Ms. Hamilton: RE: British Columbia Utilities Commission (BCUC) British Columbia Hydro and Power Authority (BC Hydro) F00/F006 Revenue Requirements Application BCUC Decision: October 9, 00; Directive 69 (page 01) (AMENDED pursuant to 006 Integrate Electricity Plan and 006 Long-Term Acquisition Plan BCUC Decision: May 11, 006; Directive 16 (page 1-16) Attached is BC Hydro s annual filing of the Report on Demand-Side Management Activities for the 1 months ending March 1, 01. For further information, please contact Geoff Higgins at or by at bchydroregulatorygroup@bchydro.com. Yours sincerely, (for) Janet Fraser Chief Regulatory Officer sh/rh Enclosure British Columbia Hydro and Power Authority, Dunsmuir Street, Vancouver BC V6B R

2 Report on Demand-Side Management Activities for Fiscal 01 July 16, 01

3 Table of Contents 1 Introduction... 1 Expenditures and Electricity Savings for Fiscal Expenditures to Date... 7 Plan Performance... 9 Mitigation Measures Operating Expenditures for Fiscal Allocation of Supporting Initiative Costs to Programs List of Tables Table 1 Expenditures and Incremental Electricity Savings for F01... Table Expenditures since F Table Cumulative Electricity Savings since April 1, Table Utility Cost of Electricity Savings: F008 to F Table Benefit Cost Ratios of Electricity Savings: F008 to F Table 6 Operating Expenditures for Fiscal Page i

4 Introduction This BC Hydro annual report to the British Columbia Utilities Commission (BCUC) on demand side management (DSM) activities responds to Directive 69 from the BCUC decision on BC Hydro s F00/F006 Revenue Requirements Application (F0/F06 RRA), Directive 16 from the BCUC decision on BC Hydro s 006 Integrated Electricity Plan and Long Term Acquisition Plan (006 IEP/LTAP) and Directives 6 and 8 from the BCUC decision on BC Hydro s 008 LTAP. The report provides information on DSM expenditures, electricity savings, plan performance and mitigation measures for the 01 fiscal year (F01), or the twelve months ending March 1, 01. Directive 69 directed BC Hydro to provide information to the Commission for on-going review of Power Smart performance through: Executive Summaries of milestone evaluation reports and full final evaluation reports for each program. Semi-annual reports on DSM activities which, amongst others, will include: detailed breakdown of OMA expenses related to support activities carried out within the Power Smart group and in other departments that support Power Smart organization; detailed description of the functions of portfolio level costs and how these costs are allocated to programs; summaries of the overall performance of Power Smart with reference to program objectives; and variances of fiscal year budgeted and actual deferred capital expenditures and explanation of variances. 6 Directive 16 directed BC Hydro to continue to file reports on DSM performance as described in Directive 69 included in Order No. G-96-0 and to file its Semi Annual Page 1

5 Demand Side Management Reports in the same format as the June 00 Report with the following enhancements: Provide annual and cumulative totals since program inception; (i) (ii) Express these values on a per unit basis; and Provide the benefit to cost ratios for the three DSM tests Directive 6 directed BC Hydro to switch from semi-annual to annual DSM performance reports while Directive 8 directed BC Hydro to include in these reports metrics for each initiative, achievements in relation to milestones, and description of past or planned mitigation measures where warranted. These mitigation measures should include shifting program resources and alternative supply options for each program. Ongoing DSM performance reporting should demonstrate how BC Hydro is continuously pursuing DSM and that specific programs are cost-effective. BC Hydro is filing evaluation reports as a separate package. This report addresses the balance of Directives 69 and 16, as well as Directives 6 and Expenditures and Electricity Savings for Fiscal 01 BC Hydro s DSM expenditures 1 in F01 totalled $17. million while incremental DSM electricity savings totalled 1,1 GWh/year. This was $1. million or 8 per cent below the DSM Plan in BC Hydro s Amended F01 to F01 Revenue Requirements Application (F1-F1 RRA). Electricity savings were 1 GWh/year or 1 per cent above the F1-F1 RRA. Table 1 presents planned and actual DSM expenditures and incremental electricity savings in F01. 1 Comprising all DSM-related deferred operating and specific capital expenditures. DSM operating expenditures are presented in Table 6 of this report. Page

6 Table 1 Expenditures and Incremental Electricity Savings for F01 Incremental Expenditures¹ Electricity Savings Plan² Actual Variance Plan² Actual Variance $ 000 $ 000 $ 000 % GWh/yr GWh/yr GWh/yr % Codes and Standards Residential % Commercial % Industrial % Total Codes and Standards % Rate Structures Residential, (1,8) (61%) % Commercial & Industrial Distribution,17,188 (99) (0%) % Industrial Transmission % (89) (9) 0 (%) Total Rate Structures,6,19 (,7) (1%) % DSM Programs Residential Sector Behaviour 6,08,197 (,81) (7%) 8 1% Lighting,, 11 7% % Refrigerator Buy-back,90,07 (9) (19%) (1) (7%) Low Income,181,6 (716) (1%) 7 6 (1) (1%) New Home,197,0 (17) (8%) (1) (1%) Appliances,07, % 0 10% Consumer Electronics,78,9 8 1% 9 10% Renovation Rebate,06,1 1,7 61% 6 6 (1) (11%) Load Displacement n/a Sector Enabling Activities 1, 1,69 () (17%) n/a n/a n/a n/a Residential Sector Total 0,981 8,607 (,7) (8%) % Commercial Sector Power Smart Partner 1,068,8,17 1% % Product Incentive 1,8,019 7,196 9% 8 69 % New Construction 6,8,901 (1,68) (6%) 1 8 () (1%) Load Displacement n/a Sector Enabling Activities 1,99 1,86 (6) (%) n/a n/a n/a n/a Commercial Sector Total,06 6,69 9,8 17% % Industrial Sector Power Smart Partner - Transmission 6,17 0, (,79) (%) % Power Smart Partner - Distribution 1,86 1,99 (7) (%) 0 8 () (8%) New Plant Design,91,78 (18) (%) % Load Displacement 1,817 8,100 (,717) (7%) (10) (6%) Sector Enabling Activities 1,1 1,010 (0) (%) n/a n/a n/a n/a Industrial Sector Total 9,88 7,718 (11,670) (0%) 17 6 % Cross Sectoral Sustainable Communities,6,69 8 1% n/a Lead by Example,78,010 (,68) (%) 1 % Cross Sectoral Total 8,1,70 (,1) (0%) 1 % Total Programs 1,907 1,718 (7,189) (%) % Supporting Initiatives Public Awareness and Education 7,86 7,10 (71) (9%) Community Engagement 6,6 6,097 (7) (8%) Technology Innovation 1,97 1,6 (601) (1%) Codes and Standards,1 1,7 (1,067) (%) Information Technology 1,60 1,099 (1) (%) Indirect and Portfolio Enabling 10,6 9,0 (1,) (1%) Supporting Initiatives Total 1,11 6,1 (,801) (1%) TOTAL DSM 189,77 17,0 (1,7) (8%) 988 1,1 16 1% 6 Table 1 Notes: 1 Including all DSM-related deferred operating and specific capital expenditures that are relevant for DSM cost-effectiveness. Plan figures are from BC Hydro s F1- F1 RRA. Page

7 Reported savings from codes and standards and residential and commercial & industrial distribution rate structures are based on planned estimates. Expenditures for Codes and Standards Support are reported under Supporting Initiatives. Plan savings are negative because they are a net number. The new savings in the year are more than offset by savings deductions due to historical projects reaching the end of their measure life. 6 The following are explanations for the above variances: Codes and Standards Residential Commercial Industrial Rate Structures Residential Commercial & Industrial Distribution Industrial Transmission Programs Residential Sector Behaviour Lighting Refrigerator Buy-Back Low Income Reported codes and standards electricity savings were on plan. Expenditures were below plan due to the residential rate design project starting later than expected. Electricity savings were on plan. Expenditures were below plan due to lower than planned implementation costs for the Medium General Service (MGS) rate structure and lower Large General Service (LGS) rate sustainment costs, both due to lower than planned customer care and communication costs. Electricity savings were on plan. Expenditures were approximately on plan. Planned electricity savings are negative due to new savings in F01 being more than offset by historical savings that have reached the end of their measure life. Electricity savings were above plan due to greater than expected customer self-generation and energy efficiency project activity. Expenditures were below plan due to a delay in the corporate Customer Portal project causing a delay of the In Home Feedback program. Electricity savings were above plan due to stronger than forecast program participation largely driven through BC Hydro promotions of online paperless billing which in turn encourages customers to sign up for the Behaviour program. Expenditures were approximately on plan. Electricity savings were above plan due to stronger than forecast program participation, particularly in sales of LED and CFL bulbs, in response to the program offer and active promotion on the part of retail partners. Expenditures and electricity savings were below plan due to lower than anticipated program participation. An investigation to determine the cause is underway however initial findings suggest that new refrigerator sales in BC have declined, perhaps in response to the recession, which in turn has decreased the volume of used refrigerators that could participate in the program. Expenditures and electricity savings were below plan due to lower than anticipated participation in the program s Energy Conservation Assistance Program component. Despite BC Hydro and partner efforts, this program component continues to have difficulty locating and enrolling customers. Page

8 New Home Appliances Consumer Electronics Renovation Rebate Load Displacement Sector Enabling Activities Commercial Sector Power Smart Partner Product Incentive New Construction Load Displacement Sector Enabling Activities Industrial Sector Power Smart Partner Transmission Power Smart Partner Distribution New Plant Design Load Displacement Expenditures and electricity savings were below plan due to lower than forecast participation. The new home market is still rebounding from the recession and HST and housing starts are shifting to multi-family dwellings. In turn, the number of detached housing starts, which offer the greatest electricity savings potential for this program, are lower than expected. Expenditures and electricity savings were approximately on plan. Expenditures and electricity savings were above plan due to greater than anticipated participation in the program s TV component as a result of successful partnerships with retail partners facilitating increased stocking of energy efficient TVs and training of retail store staff. The expenditure variance was less than the electricity savings variance due to fixed costs remaining the same despite higher program activity. Expenditures were above plan because they include costs from F011 program activity that could not be accrued due to insufficient information from program partners. Electricity savings were below plan due to lower than forecast participation resulting from the termination of federal grants for energy efficiency retrofits. No expenditures or electricity savings were planned. Expenditures were below plan due to delays in partner training initiatives and cost sharing with retailers and manufacturers. Expenditures and electricity savings were above plan due to higher than planned participation in response to a more streamlined program process, an effective program offer and strong trade ally support. Expenditures and electricity savings were above plan due to higher than planned participation in response to a more streamlined program process, an effective program offer and strong trade ally support. Expenditures and electricity savings were below plan due to a selection of large projects taking longer to complete than planned. No expenditures or electricity savings were planned. Expenditures were below plan due to the cancellation or delay of selected enabling activities in response to a re-prioritization of expenditures to commercial programs. Expenditures were below plan because electricity savings from the mix of projects were more cost effective than planned as well as a shift in Monitoring, Targeting and Reporting expenditures into F01 due to customer implementation delays. Electricity savings were above plan due to unanticipated customer self-funded projects identified through energy managers and studies. Expenditures and electricity savings were approximately on plan. Expenditures were approximately on plan despite higher than planned electricity savings due to lower than planned incentive costs for participating projects. Electricity savings were above plan due to increased program activity among oil and gas and chemical customers. Expenditures and electricity savings were below plan due to a delay in the completion of a customer load displacement project. Page

9 Sector Enabling Activities Cross Sectoral Sustainable Communities Lead By Example Total Programs Supporting Initiatives Public Awareness & Education Community Engagement Technology Innovation Codes and Standards Support Information Technology Indirect and Portfolio Enabling Activities Total DSM Expenditures were below plan due to study costs that were either under budget or delayed to the next fiscal year as well as a redirection of staff resources from industrial plant certification and market transformation strategy development to business case development for industrial programs. Expenditures were approximately on plan. No electricity savings were planned. Expenditures were below plan due to staffing reductions and the deferral of selected projects. Electricity savings were above plan due to the program focusing on projects with faster implementation. Expenditures were below plan largely because of lower than planned costs in the Industrial Power Smart Partner Transmission and Load Displacement programs. Electricity savings were above plan because of higher than planned savings in the Power Smart Partner Transmission, New Plant Design, Commercial Power Smart Partner and Product Incentive programs. Expenditures were below plan due to lower than planned advertising in light of an increased focus on smart meter communications. Expenditures were below plan due to a reduction in Outreach and sponsorship activities in light of an increased focus on smart meter communications. Expenditures were below plan due to several complex projects involving multiple funding partners proceeding more slowly than planned, as well as the receipt of a funding contribution from a project partner in late March that will offset project costs in F01. Expenditures were below plan due to lower than planned total funding requirements for energy efficiency standards development work by the Canadian Standards Association as well as higher than planned leveraging of co-funding from other funding organizations. Expenditures were below plan due to delays in an IT project which shifted project development costs into the subsequent fiscal year. Expenditures were below plan due to active cost reductions in several areas, combined with the delay in the information technology project noted above whose support and management costs are funded under this initiative. Expenditures were 8 per cent below plan because of lower than planned costs for programs, in particular the Industrial Power Smart Partner Transmission and Load Displacement programs. Electricity savings were 1 per cent above plan because of higher than expected savings from selected programs (Power Smart Partner Transmission, New Plant Design, Commercial Power Smart Partner, Product Incentive) and the Transmission Service Rate. Page 6

10 Expenditures to Date BC Hydro s DSM expenditures from F008 through F01 totalled $601.7 million. Table presents DSM expenditures from April 1, 007 to March 1, 01. Comprising all DSM deferred operating and specific capital expenditures that are relevant for DSM cost-effectiveness. To present information in a format consistent with the DSM expenditures presented in BC Hydro s 008 LTAP, which cover the years F008 forward, these figures do not include $1. million in incentive refunds received since F009 related to DSM program activity before F008. Page 7

11 Table Expenditures since F008 F008 1 ($ 000) F009 1 ($ 000) F010 1 ($ 000) F011 1 ($ 000) F01 ($ 000) Total ($ 000) Rate Structures Residential -, ,6 Commercial & Industrial Distribution -,7,8,66,188 11,91 Industrial Transmission Total Rate Structures -,000,9,87,19 18,01 DSM Programs Residential Sector Behaviour - 1,1,17,08,197 9,7 Lighting,007,,67,6, 1,7 Refrigerator Buy-back,01,90,77,,07,17 Low Income 11 1,9,97,610,6 1,1 New Home 1,1 1,19 1,6 1,,0 7,76 Appliances 1,0,6,8,6,167 16,8 Consumer Electronics - 98,68,618,9 9,96 Renovation Rebate 9 1,19,00 1,111,1 8,1 Load Displacement Sector Enabling Activities,9 1,897,08 1,6 1,69 9,01 Residential Sector Total 1,77 0, 6,11,817 8,607 11,10 Commercial Sector Power Smart Partner 10,7 17,76,77 6,06,8 11,078 Product Incentive,8 7,90 1,6 1,8,019 60,6 New Construction,16,71,6,88,901 0,8 Load Displacement Sector Enabling Activities 1,7,100 1,80 1, 1,86 7,7 Commercial Sector Total 17,10 1,68,819,66 6,69 01,66 Industrial Sector Power Smart Partner - Transmission 8, 6, 8,9 7,01 0, 0,7 Power Smart Partner - Distribution 1,1,96 10,068 9,8 1,99 0, New Plant Design 10 79,6,610,78 1,770 Load Displacement ,100 8,100 Sector Enabling Activities 1,19 1,8 1, 960 1,010,708 Industrial Sector Total 11,10 1,18,168 1,7 7, ,8 Cross Sectoral Sustainable Communities - - 1,76,096,69 6,0 Lead by Example ,77,010 6, Cross Sectoral Total - -,719,7,70 1,89 Total Programs 0,8 66,11 96,80 96,8 1,718, Supporting Initiatives Public Awareness and Education 11,9 8,69 8,67 9,190 7,10, Community Engagement - 7,79 7,079 7,081 6,097 8,00 Technology Innovation - 1,18 1,10 1,8 1,6,67 Codes and Standards 77 1,9 1,6 1,7 1,7 6,08 Information Technology 1,0 1,87 1, ,099 6,70 Indirect and Portfolio Enabling 11,1 9,90 8,7 8,78 9,0 7,7 Supporting Initiatives Total, 0,09 8,8 8,9 6,1 18,19 Total DSM 6,00 101,17 19,7 10,68 17,0 601,7 Table Notes: 1 These expenditures differ slightly from the actual expenditures presented in BC Hydro s Report on DSM Activities for F011 because of the exclusion of Voltage Optimization expenditures and Rate Structure operating expenditures in order to align with DSM expenditures presented in BC Hydro s F1-F1 RRA. Page 8

12 Plan Performance BC Hydro s DSM electricity savings since F008 totalled,0 GWh/year at March 1, 01, which equates to 10 per cent of the planned savings of,10 GWh/yr in the F1-F1 RRA. Table presents actual cumulative savings as a percentage of plan in F008 to F01. Page 9

13 Table Cumulative Electricity Savings since April 1, 007 Actual as a Percentage of Plan 1 F01 Codes and Standards Residential 100% Commercial 100% Industrial 100% Total Codes and Standards 100% Rate Structures Residential 100% Commercial & Industrial Distribution 100% Industrial Transmission 11% Total Rate Structures 10% DSM Programs Residential Sector Behaviour 11% Lighting 100% Refrigerator Buy-back 10% Low Income 97% New Home 9% Appliances 90% Consumer Electronics 19% Renovation Rebate 9% Load Displacement n/a Residential Sector Total 10% Commercial Sector Power Smart Partner 11% Product Incentive 100% New Construction 9% Load Displacement n/a Commercial Sector Total 10% Industrial Sector Power Smart Partner - Transmission 111% Power Smart Partner - Distribution 97% New Plant Design 1% Load Displacement 9% Industrial Sector Total 108% Cross Sectoral Sustainable Communities n/a Lead by Example 19% Cross Sectoral Total 19% Total Programs 10% Total DSM 10% Table Notes: 1 Reported savings for codes and standards and rates structures are based on planned estimates as well as evaluated results. Page 10

14 The DSM electricity savings presented in Table have been achieved at an average net levelized utility cost of $ per MWh. Table presents the net levelized utility cost of actual DSM electricity savings achieved from April 1, 007 through March 1, 01. Page 11

15 Table Utility Cost of Electricity Savings: F008 to F01 Net Levelized Utility Cost ($/MWh) 1 Codes and Standards Residential -16 Commercial -10 Industrial -9 Total Codes and Standards -1 Rate Structures Residential -10 Commercial & Industrial Distribution - Industrial Transmission -7 Total Rate Structures -7 Programs Residential Sector Behaviour 18 Lighting -1 Refrigerator Buy-back Low Income 97 New Home Appliances 9 Consumer Electronics 0 Renovation Rebate Load Displacement n/a Sector Enabling Activities n/a Residential Sector Total 1 Commercial Sector Power Smart Partner Product Incentive 18 New Construction 6 Load Displacement n/a Sector Enabling Activities n/a Commercial Sector Total 1 Industrial Sector Power Smart Partner - Transmission 1 Power Smart Partner - Distribution New Plant Design Load Displacement Sector Enabling Activities n/a Industrial Sector Total 1 Cross Sectoral Sustainable Communities n/a Lead by Example 1 Cross Sectoral Total 91 Total Programs 0 Rate Structures and Programs 8 Total DSM Table Notes: 1 Net levelized utility cost is calculated by subtracting capacity benefits from gross utility costs and then dividing the resulting net utility costs by electricity savings. A negative net levelized utility cost means that the subtracted capacity benefits exceed gross utility costs. Cross Sectoral Total is greater than Lead by Example because the total includes costs from the Sustainable Communities program but no corresponding electricity savings. Page 1

16 6 7 8 The DSM electricity savings presented in Table have been achieved at a substantially lower cost than new electricity supply, with a Total Resource Cost Test benefit-cost ratio of.. Table presents benefit cost ratios of actual DSM electricity savings achieved from April 1, 007 through March 1, 01. The Lead by Example program s benefit-cost ratios are less than one due to the program incurring costs in its early years while electricity savings take longer to come online. The program s benefit cost ratios will improve as more savings come online. Page 1

17 Table Benefit Cost Ratios of Electricity Savings: F008 to F01 Utility Test Benefit Cost Ratios Total Resource Cost Test 1 Non Participant Test Codes and Standards Residential n/a Commercial n/a Industrial n/a 9.7. Total Codes and Standards n/a Rate Structures Residential Commercial & Industrial Distribution Industrial Transmission Total Rate Structures Programs Residential Sector Behaviour Lighting Refrigerator Buy-back Low Income New Home.. 1. Appliances Consumer Electronics Renovation Rebate Load Displacement n/a n/a n/a Sector Enabling Activities n/a n/a n/a Residential Sector Total Commercial Sector Power Smart Partner Product Incentive New Construction Load Displacement n/a n/a n/a Sector Enabling Activities n/a n/a n/a Commercial Sector Total Industrial Sector Power Smart Partner - Transmission Power Smart Partner - Distribution New Plant Design Load Displacement Sector Enabling Activities n/a n/a n/a Industrial Sector Total Cross Sectoral Sustainable Communities n/a n/a n/a Lead by Example Cross Sectoral Total Total Programs Rate Structures and Programs Total DSM Table Notes: 1 In keeping with the DSM Regulation (Ministerial Order M 71), the avoided cost of natural gas is valued at 0 per cent of BC Hydro s long run marginal cost of acquiring electricity generated from clean or renewable resources in B.C. and non-energy benefits are valued at 1 per cent of electricity and natural gas benefits. Page 1

18 6 7 8 While the DSM regulation precludes the use of the Non Participant Test in determining cost-effectiveness of a demand-side measure, this benefit cost ratio is included in the table consistent with Directive from the BCUC decision on BC Hydro s 008 LTAP. The Total Resource Cost Test benefit-cost ratio for the Low Income program includes a 0 per cent adder to program benefits, rather than a 1 per cent value for non-energy benefits, in keeping with the DSM regulation. Cross Sectoral Total is less than Lead by Example because the total includes costs from the Sustainable Communities program but no corresponding electricity savings Mitigation Measures Table indicates that most DSM initiatives are above plan in terms of cumulative electricity savings in F01 while Table indicates that the portfolio has delivered electricity savings at a substantially lower cost than new electricity supply. Based on the experience gathered over the past few years through initiative tracking, the following are mitigation measures that have been undertaken or are planned for the future. Codes and Standards Residential Commercial Industrial Rate Structures Residential Commercial & Industrial Distribution Industrial Transmission Programs Residential Sector Behaviour Lighting Refrigerator Buy-Back Low Income New Home Cumulative electricity savings in F01 were on plan. Cumulative electricity savings in F01 were on plan. Cumulative electricity savings in F01 were on plan. Cumulative electricity savings in F01 were above plan. Cumulative electricity savings in F01 were above plan. Cumulative electricity savings in F01 were on plan. Incentive levels for LED lighting will be reduced in F01 as retail prices are expected to decline. Cumulative electricity savings were above plan but program participation is declining. BC Hydro is investigating this trend in F01 to identify causes of decreasing participation and formulating plans to address the trend. Cumulative electricity savings in F01 were slightly below plan. An expanded partnership with FortisBC Gas is expected to increase program participation. BC Hydro will determine if adjustments to program qualifying criteria are also required. Cumulative electricity savings in F01 were below plan. A new partnership with FortisBC Gas is expected to increase program participation. Page 1

19 Appliances Consumer Electronics Renovation Rebate Cumulative electricity savings in F01 were below plan. Program specifications for qualifying products are increasing again in F01 to remain ahead of improving appliance baseline energy consumption, therefore improving cost-effectiveness of the program. Ongoing discussions and negotiations with retail and manufacturing partners will continue to influence stocking and promotions of qualifying appliances. Cumulative electricity savings in F01 were above plan. Strong retail partnerships formed over the past years will allow BC Hydro to achieve targeted electricity savings in F01 while adjusting the qualifying criteria for TVs to manage free-ridership and lowering incentive levels to reduce costs. Cumulative electricity savings in F01 were below plan due to the termination of federal grants. BC Hydro will continue to work with the Ministry of Energy and Mines and FortisBC to drive program participation in F01 and determine the best program model going forward. Load Displacement No electricity savings were planned in F01. Commercial Sector Power Smart Partner Product Incentive New Construction Cumulative electricity savings in F01 were above plan. Electricity savings have increased relative to plan since F008 in response to program improvements and strong trade ally support. Cumulative electricity savings in F01 were on plan. Electricity savings have increased relative to plan since F008 in response to program improvements and strong trade ally support. Cumulative electricity savings in F01 were below plan due to project completions taking longer than planned. An expanded partnership with FortisBC Gas is expected to increase program participation. No further mitigation measures are warranted because planned cumulative electricity savings are expected to be achieved. Load Displacement No electricity savings were planned in F01. Industrial Sector Power Smart Partner Transmission Power Smart Partner Distribution New Plant Design Load Displacement Cross Sectoral Sustainable Communities Cumulative electricity savings in F01 were above plan. The program recovered from below plan results in F011 with a strong performance in the pulp and paper sector in F01. Cumulative electricity savings in F01 were slightly below plan. No mitigation measures are warranted. Cumulative electricity savings in F01 were above plan. Continued targeting of growth sectors with better market intelligence has increased the program s performance. Cumulative electricity savings in F01 were slightly below plan due to the delay of one project into F01. No mitigation measures are warranted as planned cumulative electricity savings are expected to be achieved. BC Hydro has adjusted the program due to the evolution of the district energy market and the characteristics of proposed district energy projects. BC Hydro will continue to support and influence the creation of community energy plans, but this effort will be structured as a supporting initiative within the existing Community Engagement initiative. Page 16

20 Lead by Example Cumulative electricity savings in F01 were above plan. The program has shifted focus towards projects offering more cost-effective electricity savings. 1 6 Operating Expenditures for Fiscal 01 BC Hydro s DSM operating expenditures in F01 totalled $8,000. Table 6 presents DSM operating expenditures in F01. Table 6 Operating Expenditures for Fiscal 01 ($000) Labour 707 Materials 18 ABS Services 19 Other Services 79 Facilities and Equipment Total Allocation of Supporting Initiative Costs to Programs This section describes how supporting initiative costs are allocated to programs for the purpose of cost test calculations. In keeping with Directive 61 from the BCUC decision on the F0/F06 RRA, when calculating levelized costs and benefit cost ratios for this report, supporting initiative costs are allocated to DSM programs and rate structures based on their share of DSM electricity savings in F018. For example, rate structures and programs are forecast to save roughly 6, GWh/year in F018, so a program that is forecast to save 6 GWh/year in F018 represents one per cent of the total. In turn, one per cent of supporting initiative costs would be allocated to that program in each year when calculating the program s levelized cost or benefit cost ratio. DSM operating expenditures are not included in earlier tables. A description of supporting initiatives is available in the F1-F1 RRA (Appendix II, Attachment ). Page 17