SUPPLEMENTARY INFORMATION REQUESTS OF THE SIERR CLUB

Transcription

1 SUPPLEMENTARY INFORMATION REQUESTS OF THE SIERR CLUB 1. Please describe how the avoided costs used in DSM programs conducted by BC Hydro account for environmental benefits of the measures and programs. a) If the avoided costs do not include an accounting for environmental benefits, please explain why they do not? b) Is there any "indirect" way in which the environmental benefits of DSM programs are accounted for in program design, measure selection or program prioritization? 2. Is there any component for quantifying the "risk benefits" of DSM (price stabilty, ease of ramping up or down program implementation, low incremental cost) in the avoided costs used to evaluate the benefits of DSM investments? If so, please describe. If not, why not? 3. Is there any attempt by BC Hydro to quantify systematically the benefits DSM and/or distributed generation might have in deferring or avoiding specifc transmission and distribution ("T &D") system upgrades, the need for which is triggered by growth-induced constraints on the system? If so please describe. If not, why not? a) Is there component of T &D system planning that seeks to integrate targeted DSM and distribution planning with a least-cost approach to transmission and distribution system investments? b) Are DSM programs targeted to identified constrained areas of the T &D system? If so, on what basis? c) Has there been a systematic assessment ofdsm potential on Vancouver Island as part of the Vancouver Island Call for Tender? If so, please indicate where that assessment can be found. 4. Is there any effort particularly with the Power Smart Partners Program, to integrate and account for the environmental benefits to be derived by the PSP program offerings with requirements for businesses or provincial entities to meet Greenhouse Gas Reduction targets? Is there any system that would, for instance, credit DSM savings toward industrial, commercial, provincial or national GHG reduction goals? If so, please describe. If not, why not? 5. Reference: Volume 2, Appendix M: DSM Evaluation Summary and Plan. Why is it not a stated goal of the Evaluation Plan "to understand existing energy markets and the dynamics within those markets that affect energy choices by customers as completely as possible?" Please provide reference to any market characterization studies that assess for example: Vendors active in the market; services provided by those vendors; barriers perceived by those vendors to providing higher levels of effciency services; incentives and

2 dis-incentives in contracting, design, and market relationships that bear on their wilingness to promote efficiency services. 6. Reference" Volume 2, Appendix M: Preamble: Evaluation efforts described in Appendix M as "market characterization" appear to be for very specific products, such as CFL's or Holiday lighting products. Does BC Hydro in its DSM program planning ever start the planning process by conducting a thorough investigation of a market (for instance the large commercial market, the industrial market, the small commercial market, the residential new construction and renovation market), and then design programs to address all cost-effective opportunities within each market? so, please provide examples. If not, why not? 7. Has BC Hydro made any attempt to assess the effects of starting and stopping "programs" for specific products or classes of products on the readiness of trade alles (retailers, wholesalers, electrical contractors, other equipment installers)-- in various markets to participate in programs? 8. Has BC Hydro considered the possibilty of conducting programs in market sectors for a sustained period of time and simply including new products and revising strategies as market changes and opportunities warrant over time? Has BC Hydro done any assessment of how such a strategy might increase market transformation with regard to specific efficiency products and strategies in a quantifiable manner? 9. Does BC Hydro have a working definition of "lost opportunity" markets as distinguished from "retrofit" markets? If so, please describe where such definitions are provided in the filing. Does BC Hydro place a planning priority on addressing "lost opportunity" markets? If not, why not? 10. Does BC Hydro place a planning priority on accomplishing comprehensiveness of installation of cost-effective measures in its DSM programs? If so, please ilustrate by providing an example. 11. Do Program managers have the flexibilty to include new measures and change incentives within DSM programs based on process evaluation feedback, customer feedback, or the emergence of new products or new opportunities in the market? What approvals and review procedures are required to make such changes? 12. Reference: Volume 2, Appendix N: Power Smart Program Summaries, p. 2, in the description of the Power Smart Partners (PSP) - Industrial, under the heading "Incentive Fund", sentence reading: "Projects are evaluated against established criteria set forth by BC Hydro. Projects which prove to be the most cost-effective on a $kwhbasis receive incentives" (Emphasis added.

3 a) Is his program designed to incentivize the measures that are already the most attractive to customers? b) Does this leave substantial cost-effective, opportunities unincentivized? Please discuss. c) Does BC Hydro "package" incentive offers to increase comprehensiveness; for instance, by offering incentives for longer payback measures if the company wil implement and fully fund short-payback measures? 13. Reference: New Construction Program description in Volume 2, Appendix N, p. 18. How wil the new construction program interact with existing and future building codes, and with code implementation and enforcement? Is there a strategic plan for using DSM programs to "ratchet up" the code level? 14. Reference: Home Energy Upgrade Program ("HEU"), V.2; App. N., p. 24. Has BC Hydro considered offering incentives for fuel switching from electric to gas heating systems in existing homes? If so, please describe. 15. Reference: HEU Program, V.2; App. N., p. 24 With regard to the HEU program, please describe the Natural Resources Canada (NRCan) programs referenced in this program description. 16. Reference: Power Smart Program (PSP), V.2. App. N; P. 1, under Technology" Please describe, or identify where in this fiing or elsewhere, there is a full description of BC Hydro s "load displacement" program as referred to in the PSP program description. Describe how this effort is integrated with the DSM aspects of the program. 17. Please provide or indicate where a description of peak load for the BC Hydro system by month and by day can be found for Reference: App. K, V.2., "BC Hydro Transfer Pricing Agreement, FY 2004" (Agreement between BC Hydro and Powerex Corp.) pp Please describe and provide any analysis that has been conducted by BC Hydro to maximize the benefits of DSM savings to off-system sales through Powerex. Please refer specifically to how DSM savings can be reflected and quantifed in projected alterations to Domestic Load (definition 1.1.6); and Net delivered quantity to Powerex Definition 1.1.9) a) Has DSM investment been evaluated with regard to its potential to increase those off-system sales? b) Has any analysis been done to determine when peak market prices in the RTO occur and coordinate that with potential DSM measures

4 likely to have coincident savings that would provide extra value to BC Hydro for its off-system sales at those times? 19. What economic test or tests are used to evaluate possible investments in Load Displacement projects? a) Are these tests the same as those used for DSM investments? If so please explain how they are applied by giving a specific example. not, please explain why not. b) Does the $.025 utilty test maximum cost requirement apply to these projects? If not, why not? c) Is the RIM (Rate Impact Measurement) test applied to these projects? If so, please ilustrate by describing a specific example. 20. For each of the Power Smart Programs described in Appendix N, please provide detail on the financial incentives offered to participating customers. In particular, please indicate either the typical dollar amount of the financial incentive, or the percent of the efficiency measure installed cost that is covered by the incentive, for each program. 21. For each of the Power Smart Programs described in Appendix N, please describe in detail how the program budgets are determined? Are they determined on a bottom-up approach (based on a sum of all the measures implemented), or on a top-down approach (based on a total amount of funding for the program)? 22. For each of the Power Smart Programs described in Appendix N, please provide information regarding (1) the number of customers eligible for the program, (2) the number of participants in the program, and (3) the proportion of the participants relative to the total eligible. 23. Reference: Power Smart 10-Year Plan in Appendix I, pages 5 and 6. Was the $0.025/kWh hurdle applied to each efficiency measure, each efficiency program in total, or all the effciency programs in total? 24. Reference: Power Smart 10-Year Plan in Appendix I, page 7, "Cost of new electricity supply, Please provide the stream of annual unit costs that were used as a proxy for the long-run cost of new electricity supply. Please provide all studies documents and work papers that were used in developing this proxy for the long-run cost of new electricity supply. How does this proxy compare with the cost that would have resulted from the traditional methodology described in this section. Please provide your

5 most recent estimate of the long-run cost of new electricity supply based upon the traditional methodology described in this section. 25. Reference: Power Smart 10-Year Plan in Appendix I, page 8, "Customer Electricity Tariff Rates Please provide the basis for the valuation of green house gases at $3 per tonne.