CDM Business Program Updates

Transcription

1 CDM Business Program Updates June 17, 2016 Joe Bilé, Manager, CDM Program Delivery & Business Development Jen Grado, Lead, CDM Business Development

2 Agenda 1. Retrofit 1.1. Overview 1.2 Retrofit V2 Enhancements 1.3 Multi-Site Application 1.4 Post-Installation Optimization Services 1.5 Project Measurement & Verification (M&V) Procedures Combined Track 1.7 Prescriptive Lighting 1.8 Fast Track 1.9 Incentive Harmonization 1.10 Retrofit Next Steps 2. Process and Systems Upgrades Program (PSUP) 2.1 Preliminary Engineering Study (PES)/Detailed Engineering Study (DES) Funding Rates Recommendation rd Party Combined Heat and Power (CHP) 2.3 CHP for new facility builds 3. Questions 2

3 Program Stages of Development Approved Changes Proposed Changes Program 2016Q3 2016Q4 2017Q1 Small Business Lighting Energy Manager HPNC Quick Fix Retrofit V2.1 3 rd Party CCHP HPNC for CHP Building Commissioning Developed Design Concepts Audit Conceptualized Design Retrofit Gen. 3 PSUP 2017 HPNC 2017 Retrofit 2017 Upstream 3

4 Retrofit Program Development Generation 1 Convert Agreements to Conservation First Framework (CFF) Retrofit Version 1.1 Generation 2 Apply program enhancements to CFF Retrofit Version 2 and 2.1 M&V Procedures V2 Generation Holistic review of market, technology, incentives, & opportunities Additional version releases 4

5 1.1 Retrofit Overview Business Case and Retrofit V2 rules approved April 11, 2016 CDM-IS Retrofit delayed until Q Most elements of Retrofit V2 proceeding V2.1 effective June 20, 2016 Exceptions: Fast Track dependent on CDM-IS Incentive Harmonization (custom incentive changes) to be reviewed through V3 enhancements V2 Rules available online: Framework/Program-Rules.aspx 5

6 Summary of Retrofit Rules in Effect 6

7 1.2 Retrofit V2 Enhancements Enhancements Multi-Site Application (MSA) model Effective January 1, 2016 Post-Installation Optimization Services Monitoring & Targeting (M&T) eligible costs Effective for new projects as of April 11, 2016 Project M&V Procedures 2.0 Available and optional as of April 11, 2016 Effective for new applications as of June 20, 2016 Combined Track Effective for new applications submitted as of June 20, 2016 Prescriptive Lighting Incentives Effective for new applications as of June 20, 2016 Fast Track Available Q with CDM-IS Release Status 7

8 1.3 Retrofit V2 Enhancements: Multi-Site Application (MSA) MSA Model Introduction of formalized structure for Lead LDCs to manage applications with sites across multiple LDC service territories Goals: Streamline and simplify the MSA application and approval process to improve customer experience and program cost effectiveness More equitable sharing of costs for Lead LDCs In Market Date: Effective January 1,

9 STAGE 1 STAGE 2 STAGE Retrofit V2 Enhancements: Post Installation Optimization Services Cost Eligibility M&T Projects M&T measures under Retrofit usually include equipment purchase and/or accompanying post-installation optimization activities that assure system performance Currently, costs of post-installation maintenance and service agreements are ineligible Equipment Installation Project Close (In Service) + Advanced Incentive Monitoring & Performance Assurance Costs Eligible In-Market Date: Effective for new projects as of April 11,

10 1.5 Retrofit V2 Enhancements: M&V Procedures 2.0 M&V Procedures Changes include increased threshold for enhanced M&V, updated demand savings definition and templates for M&V Plans Goals: Simplified process and consistent with other jurisdictions More efficient, consistent and accurate plans from Participants Elements: Enhanced M&V threshold increased from $25,000 incentives to $40,000 incentives Templates available for Basic and Enhanced M&V M&V procedures and sample M&V Plans for popular measures Demand savings definition revised to 1 p.m. to 7 p.m. on business days from June 1 to August 31 In Market Date: Available and optional as of April 11, 2016 Effective for new applications as of June 20,

11 M&V Threshold Change Project incentive $80,000 $40,000 Today Enhanced M&V After June 20 Lighting Non-Lighting Enhanced M&V IPMVP Option B IPMVP Option A Enhanced M&V IPMVP Option A/B/C/D $25,000 Basic M&V Basic M&V Basic M&V $10,000 $0 M&V not required 11

12 Demand Savings New Definition Old Definition Demand Savings (kw) = maximum reduction in electricity demand between the Base case and the Energy Efficient Case occurring in the same hour between 11 a.m. to 5 p.m. on business days, June 1 through September 30. New Definition Demand Savings (kw) = average load reduction in electricity demand between the Base case and the Energy Efficient Case occurring between 1 p.m. to 7 p.m. on business days, June 1 through August

13 1.6 Retrofit V2 Enhancements: Combined Track Combined Track Removal of Engineered Track and allowing Engineered Worksheets to be submitted through Custom Track Goals: Reduce confusion with Engineered Track Allow channel partners to use their own tools Improve net to gross through application of M&V Procedures Elements: Engineered Track will be removed from the Save on Energy website Engineered worksheets will remain available on Save on Energy website for reference Applicants can choose either Prescriptive or Custom Track All custom applications (including those submitted with an Engineered Worksheet) will require M&V plan in compliance with M&V procedures. In Market Date: Effective for applications submitted as of June 20,

14 1.7 Retrofit V2 Enhancements: Prescriptive Lighting Incentives Updates to the Prescriptive Lighting Incentives Version Retrofit Program - Lighting Eligible Measures worksheet and Version 6.0 Retrofit Program Exterior Lighting Eligible Measures worksheet Goals: Addition of new measures including LEDs Improve cost effectiveness, reasonableness of incentives based on measure cost and clarify savings assumptions Removal of obsolete measures (CFL, standard T8, HID, IR Halogen) Elements: Addition of new measures including LEDs Revision to measures and incentive levels (~$0.09/kWh) Assumed base case is for reference only (LDC Discretion) Prescriptive Exterior Lighting Worksheet includes pole mounted roadway/street lighting measures. In Market Date: Effective for new applications as of June 20,

15 Other LED Lighting Approval Changes 15

16 1.8 Retrofit V2 Enhancements: Fast Track: Fast Track Streamlined approval for Prescriptive Projects with incentive <$3,000 No change to post-project requirements Goal: Reduce approval times and increase volumes of applications Elements: Reduce LDC and participant administration costs for Pre-Project approval LDC has full discretion In Market Date: Available Q with CDM-IS Release 16

17 1.9 Retrofit V2 Enhancements: Incentive Harmonization Goal: Align incentive rates with energy targets Reduce budget liabilities related to some demand based incentives In Market Date: BWG to engage consultant to review program incentive structure with expected in-market date in

18 1.10 Retrofit Program: Next Steps June 20, 2016 Effective Date V2.1 Prescriptive Lighting Worksheets Combined Track M&V Procedures 2.0 CDM-IS Development Continues Q Release Planned Retrofit version 3 Related to further enhancements Retrofit Generation 3 Procurement starting 18

19 2.0 PSUP Enhancements PES and DES Funding Rates Recommendation E-Blast May 11, rd Party CHP Ownership Allowance New PSUP Rules and Participant Agreement available June 2016 Rules Currently Posted for comment CHP for new facility build through PSUP May be associated with a HPNC project 19

20 Questions? Sign up for EConnect for Biz at 20

21 Disclaimer The information in these materials is based on information currently available to Corporation and its affiliates (together hereinafter referred to as ), and is provided for information purposes only. does not warrant the accuracy, reliability, completeness or timeliness of the information and undertakes no obligation to revise or update these materials. (including its directors, officers, employees, agents and subcontractors) hereby waives any and all liability for damages of whatever kind and nature which may occur or be suffered as a result of the use of these materials or reliance on the information therein. These materials may also contain forward-looking information within the meaning of applicable securities laws in Canada ("Forward-Looking Information"). The purpose of the Forward-Looking Information is to provide Toronto Hydro s expectations about future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All Forward-Looking Information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify Forward-Looking Information, although not all Forward-Looking Information contains these identifying words. The Forward- Looking Information reflects the current beliefs of, and is based on information currently available to, s management. The Forward-Looking Information in these materials includes, but is not limited to, statements regarding Toronto Hydro s future results of operations, performance, business prospects and opportunities. The statements that make up the Forward-Looking Information are based on assumptions that include, but are not limited to, the future course of the economy and financial markets, the receipt of applicable regulatory approvals and requested rate orders, the receipt of favourable judgments, the level of interest rates, s ability to borrow, and the fair market value of s investments. The Forward-Looking Information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the Forward-Looking Information. The factors which could cause results or events to differ from current expectations include, but are not limited to, the timing and amount of future cash flows generated by Toronto Hydro's investments, market liquidity and the quality of the underlying assets and financial instruments, the timing and extent of changes in prevailing interest rates, inflation levels, legislative, judicial and regulatory developments that could affect revenues, and the results of borrowing efforts. cautions that this list of factors is not exclusive. All Forward-Looking Information in these materials is qualified in its entirety by the above cautionary statements and, except as required by law, undertakes no obligation to revise or update any Forward-Looking Information as a result of new information, future events or otherwise after the date hereof. 21

22 Combined Track: Proposed Program Design Changes # Element Current Approach Proposed Change 1 Program Structure Three existing Tracks; Prescriptive, Engineered, and Custom Engineered Track will merge into the Custom Track 2 Applicant Experience Applicants currently use the Prescriptive or Engineered Tracks where a Worksheet exists. Custom Track used when the Project doesn t fit into the other predefined categories Measures have been redefined such that Applicants can choose the Track that works best for them at that time; Prescriptive or Custom. 3 Worksheets Engineered Worksheets must be used where the Measure falls into one of the pre-defined categories Applicants will be able to provide their own calculations (i.e. most valuable for lighting applications) 4 Realization Rates Engineered Projects are currently not subject to M&V requirements, which has negatively impacted realization rates All Custom projects, including ones that would have previously been submitted as Engineered, will be compliant with the [revised] M&V Procedures 22