FortisBC Community Stakeholder Workshop Vancouver and Area

Transcription

1 FortisBC Community Stakeholder Workshop Vancouver and Area Long Term Resource Planning April 11,

2 Agenda 8:30 am Introduction to FortisBC 9:15 am Energy Solutions 9:45 am Distribution & Asset Management 10:00 am Break & Refreshments 10:15 am Group Activity 10:45 am Long Term Resource Planning 11:15 am Demand Forecasting 11:30 am Energy Efficiency and Conservation 11:45 am Closing Remarks 2

3 Workshop Objectives 1. Obtain feedback on Long Term Resource Planning issues 2. Provide a better understanding of the energy planning environment 3. Raise awareness of our safety messages, energy conservation programs, and integrated energy solutions 4. Capture new ideas for collaborating to meet community energy needs 5. Identify community partnership opportunities 3

4 Resource Planning Outreach Objectives: 1. Understand and plan for future energy needs 2. Get input and feedback from stakeholders on various LTRP issues 3. Provide timely information and analysis based on the LTRP process 4. Discuss other issues / successes / challenges affecting the company Stakeholder initiatives: 1. An external advisory group (RPAG) 2. Community consultation activities 3. Broad stakeholder forum 4

5 5 The Future. We re Ready.

6 6 Company Structure

7 Fortis Inc. in BC Natural Gas, Electricity, and Propane Over one million customers 135 communities across BC Over 2,000 employees Combined assets of $6.4 billion $1.03 billion invested since 2007 Planned capital investment $2.5 billion over next five years Integrated energy solutions portfolio 7

8 Bringing Customer Service In-House To have direct ownership of our interactions with our customers and manage: Customers changing needs Customer satisfaction Commitments to our customers 8

9 Positive Impact for BC 400 new jobs 650 short term jobs $25 million to BC GDP annually $4.5 million tax revenue annually 9

10 Corporate Giving Programs Community giving days Sharing Farm, Richmond Employee giving programs $300 donation 50% donation matching Payroll deduction Corporate sponsorships Warm hearts 10

11 First Nations Partnerships Mt. Hayes LNG Project & Chemainus First Nation Skill Builder 11

12 Our Role in BC s Energy Future 12

13 13 Help Us Shape the Future of Energy in BC

14 FortisBC Energy Solutions Integrated Energy Solutions 14

15 Energy Planning Environment Supply Economics Customer Needs Policy Technology 15

16 Transformation of Energy Delivery in BC Present Future (medium term) 16 Future (longer term)

17 Integrated Energy Utility 17

18 18 Integrated Energy Discussion

19 FortisBC Biogas Supply Model FortisBC may invest in upgrading plant, interconnection assets and main extension increasing asset base Biogas Source Upgrading Plant Asset recovery costs go into Biomethane rate Biomethane Rate Base Metering, Monitoring, Odourizing FortisBC Transmission and Distribution System Asset recovery costs from all customers Rate Base 19

20 Biomethane Projects Expected Volumes (GJ/Year) Project Catalyst 30,000 88,000 88,000 88,000 88,000 Salmon Arm 0 20,000 20,000 25,000 25,000 SUBTOTAL 30, , , , ,000 FUTURE City of Kelowna 30,000 60,000 60,000 60,000 Annacis Island 0 100, , ,000 Other 5,000 30,000 30,000 60,000 SUBTOTAL 0 35, , , ,000 20

21 Transportation CNG LNG Waste Haulers Heavy Duty Trucks Transit Buses Marine 21

22 Public Benefits of NGV Production New markets for gas Royalty revenue for government Transmission/ Distribution Incremental gas load drives system and cost efficiencies Customers Lower operating costs for fleets Lower delivery charges for all gas customers Communities Improved air quality Reduces GHG emissions 22

23 Current Projects CNG trucks Will displace 468,000 liters per year of diesel GHGs reduced by 213 tonnes per year Fuel savings ~50% 50 LNG trucks Will displace 3.6 million liters per year of diesel GHGs reduced by 3,754 tonnes per year Fuel savings ~50% 11 CNG buses - Kelowna Will displace 77,000 liters per year of diesel GHGs reduced by 121 tonnes per year Fuel savings ~25% 23

24 24 Energy Solutions - Combined Heat & Power

25 25 Energy Solutions 0.8 EF Hot Water

26 26 Energy Solutions Remote Community Distribute LNG

27 Distribution & Asset Management Distribution Manager 27

28 Operations Overview 28 Includes more than 700 field and support personnel Responsible for: Emergency response; 24/7/365 Operating and Maintaining existing facilities Building new facilities and pipelines Planning and design of new pipelines, services & meter sets Scheduling & dispatching personnel Divided into five zones Vancouver Island & Sunshine Coast Lower Mainland West Lower Mainland East Interior North Interior South

29 Asset Management A part of Operations Responsible for: Administering maintenance programs Planning and initiating new construction or replacement Field quality Integrity management Significant increases in refurbishment or replacement starting in 2012 Much of the system was installed in the 1950s and 1960s or before Need to understand and predict the best way to keep system operating safely and reliably Need to ensure customers money is properly spent 29

30 Projects Pending in Vancouver & Area 2012 $1.25 million 750 m of 60 mm, Dublin, New West. 540 m of 60 mm, 7 th Ave, New West 185 m of 60 mm, 49 th Ave, Vancouver 2013 $640 thousand 245 m of 114 mm, Acadia, Vancouver Station upgrades 2014 $ 3.82 million 320 m of 114 mm, Sweden Way, Richmond 4500 m of 168 mm, Lougheed Hwy, Burnaby 2700 m of 168 mm, Francis Rd, Richmond NOTE: These projects are subject to change 30

31 Third Party Damage Prevention High importance to Fortis BC third party damages every year Members of BC One Call and Common Ground Alliance Provide drawings and, if you can t find the line, locates Provide training through Dig Safe seminars Will provide training in working safely around gas lines at no cost Report damager information quarterly to WorkSafe BC 31

32 Third Party Damage Statistics for Vancouver & Area Includes: UEL, Vancouver, New Westminster, Burnaby, Richmond, North Vancouver, West Vancouver 32

33 Coordinating Utilities Activities We are all dealing with aging infrastructure There should be efficiencies for local governments as well as Fortis BC if we coordinate work (e.g. one road cut and repair) Fortis BC is developing better long range plans Plan to increase communications / coordination with local agencies 33

34 Break 15 minutes 34

35 Group Activity Critical Uncertainties 30 minutes 35

36 Long Term Resource Plan Background and Update 36

37 Integrated Resource Planning (IRP) Process Assess customer needs and examine options to meet the needs Examine the Planning Environment Forecast of Energy Needs Efficiency and Conservation Potential Options for Growth and Sustainment Select Preferred Options Long Term Strategy & Action Plan Risks & opportunities Customer & demand forecasts Demand side management Conservation effort, infrastructure, service offerings, energy purchases Portfolio Analysis 4-year Action Plan Clean Energy Act BC Utilities Act Section 44.1 BCUC Resource Planning Guidelines Directives and Orders Long Term Resource Plan (LTRP) IRP = LTRP 37

38 2010 Annual Natural Gas Demand Residential and Commercial Gas Sales Customer Additions & Demand Efficiency Improvements are approximately offsetting customer additions 38

39 Demand (TJ's) Reduced Carbon Intensity Future Annual Demand (Conceptual) 190, , , , , , , reference case Ref case Demand -Scenario A Natural gas efficiency Demand with scenario B Renewable thermal Alternative Energy(Conceptual)

40 Demand (TJ's) Natural Gas for Transportation Annual Demand (Conceptual) 190, , , , , , , reference case Ref case Demand -Scenario A Natural gas efficiency Demand with scenario B Transportation sector Transportation sector(conceptual) Renewable thermal Alternative Energy(Conceptual)

41 41 Regional Gas Supply Market

42 Gas Prices Disconnected from Other Fuels 42 42

43 Natural Gas Price Forecasts 3 rd Party 43 43

44 FortisBC Natural Gas System Lower Mainland and Vancouver Island Potential Expansion Gas supply benefits LNG as transport fuel 44

45 FortisBC (interior) Natural Gas System Savona Kingsvale Pipeline loop KAMLOOPS VERNON KELOWNA 12 Peakshaving LNG High demand growth area Additional system resource required in to meet demand growth System addition schedule could be advanced due to: new industrial demand in Okanagan TJ/d PENTICTON Pipeline loop NELSON Potential 45 Hedley reinforcement for transportation service OLIVER Y Midway Trail Compressor Addition 12 Kit-B Kit-A YAHK

46 +40 years +30 years +20 years +10 years -10 years +40 years +30 years +20 years +10 years -10 years Length [km] Length [km] Aging Infrastructure Distribution Pipelines Transmission Pipelines Distribution Mains - 27% of 22,100 km DP are older than 40 years TP and IP Pipelines Chart Title - 34% of 2990 km TP are older than 40 years - 38% of 660 km IP are older than 40 years TP IP Asset management system enhancements underway 46

47 What resources must FortisBC have in place to supply customers integrated energy needs safely, reliably, and securely, while managing environmental impacts and at reasonable cost, over the next 20+ years? Policy Environment Technology Competition Energy Demographics Customers Supply Economics

48 Scenarios - Visions of Future A. Define B. Explore C. Build D. Use Rapid Technological Advancement Pricing Carbon Doing More with Less Abundant Supply Constricted Supply Demand Renaissance Limited Choices Slow Technological Advancement

49 Demand Forecasting Customer and Use Trends 49

50 Residential Energy Use Profile Lighting 7% Appliances 19% Water Heating 24% Space Heating 50% 50

51 Energy Measurement - GJ Gigajoule GJ A Mainland residential customer uses approx. 90 GJ/yr One GJ is equivalent to A little more than a typical BBQ propane tank Residential demand, all regions, approx: 75,000,000 GJ/yr Fireplace, 17 GJ Hot Water Tank, 21 GJ BBQ, 3 GJ Furnace, 60 GJ 1 GJ = 2500 burgers Typical consumption by appliance, 100 GJ home 51

52 Energy Measurement Terajoule TJ = 1,000 GJ Measure for Commercial and Industrial customers Demand/Yr Example 1 TJ Large grocery store 5 TJ Hotel 15 TJ Mid-size hospital Petajoule PJ = 1,000 TJ Annual FortisBC throughput approx. 204PJ A big mill or mine could use 1-2 PJ/yr 52

53 Where Does the Gas Go? 57.5% of our Demand is Consumed in the Lower Mainland, and demand is split evenly between three sectors WHISTLER 0.4% COLUMBIA 3.3% FORT NELSON 0.3% REVELSTOKE 0.1% VANCOUVER ISLAND 16.6% INLAND 21.8% Industrial 37% Residential 37% LOWER MAINLAND 57.5% Commercial 26% 53

54 54 FEI Normal & Peak Day Load versus Recommended Portfolio

55 UPC, Gj Residential Account Declining Residential Demand , , , , , , , , ,000 Annual UPC, Gj Accounts 55

56 Percent of Gas Homes Residential New Homes Study (RNHS) Key Findings Space Heating The proportion of gas homes with a gas furnace continues to decline. Gas End-Use Trends Gas Space & Water Heating Gas boiler Gas Furnace Gas DWH Gas Fireplace 0 56 Before Dwelling Vintage or newer Pre 2006:REUS or newer: RNHS 2010

57 Percent of Gas Homes RNHS Key Findings Cooking and Appliances The penetration of gas cooking appliances, including piped gas BBQs, continues to increase. Gas End-use Trends Gas Cooking & Other End-Uses Thirty-three percent of new homes have a gas range (compared to 18% of gas homes built prior to 2006) Gas range Gas cook top Gas wall oven Gas clothes dryer Gas BBQ Gas outdoor heater Twenty-two percent have a gas cook top (compared to 13% of gas homes built prior to 2006), and 39% having a piped gas BBQ (16%) Before Dwelling Vintage or newer Pre 2006:REUS or newer: RNHS

58 Space DWH Cook BBQ Space DWH Cook BBQ Space DWH Cook BBQ Space DWH Cook BBQ Unit Energy Consumption (GJ) EnerGuide 80 Impacts on Consumption 70 Change in UECs ERS 77 ERS 80 ERS 86 58

59 Energy Efficiency and Conservation Programs and Planning Update 59

60 Energy Efficiency and Conservation (EEC) Overview 1 15 years of operation ( ) Total investment: 54.4 million ( ) Full time staffing: 3 staff (1997) 19 staff (2011) Net Annual Energy Savings: 46,461 GJs (1997) 166,110GJs (2010) 60

61 Why focus on EEC? Government 2007 Energy Policy 2010 Clean Energy Act Customers Lower energy bills Infrastructure optimization Shareholders Align interests with other stakeholders EEC benefits everyone Environment Infrastructure optimization GHG reduction 61

62 Residential Energy Use Profile Appliances 19% Lighting 7% Water Heating 24% Space Heating 50% Space and water heating make up 75% of a home s energy use Conservation of natural gas presents a significant opportunity to reduce energy consumption 62

63 Innovators Early Adopters Early Majority Late Majority Laggards Goal of EEC: Market Transformation The goal of EEC is to transform the market to a point where energy efficient equipment/systems/buildings are the new baseline for regulation Can be achieved through organic behaviour change influenced by education, or through direct measures like changes in regulated standards E.g. minimum efficiency for furnaces and boilers 63

64 $ Millions EEC Programs Breakdown by Expenditure $5 $5 $ $4 $3 $3 $2 $2 $1 $1 $0 Residential Commercial Affordable Housing Fuel Switching Education & Outreach Others Innovative Technology Actual Expenditure: $12 million 2011 Actual Expenditure: $16 million

65 New EEC Program Areas As part of the FortisBC Revenue Requirement Application, the Commission approved increased funding for two new program areas: Interruptible Industrial Customers Responsible for 29% of FortisBC s load Potential for significant reduction in consumption Innovative Technologies Evaluating potential energy savings Includes: Solar Thermal Hot Water, Occupancy Sensor, Tankless Water Heater, Residential GSHP Systems, etc. 65

66 Partner Initiatives (2010) - Residential (Live Smart BC, Energy Star Washer Program) - Commercial (PSECA initiative) - Innovative Technology (PSECA Solar) - Contractor Program Work collaboratively with federal, provincial and municipal government in development and implementation of regulations & programs 66

67 GJ Energy Savings from EEC Programs 300, ,000 Total Annual Energy Savings From EEC Programs (GJs) 246, , , , , % 100, % 50,

68 EEC Total Annual Energy Savings 2011 Affordable Housing, 13,155 Joint Initiatives, 19,852 Commercial, 156,846 Residential, 56,350 14,000 12,000 10,000 8,000 6,000 4,000 2,000 1,484 Cars GHG Reduction (tc02e) 6,679 8,472 Cars 12,556 2,790 Cars FortisBC will conserve 246,204 GJ s of Energy annually from it s 2011 programs ( 2,676 homes) 68

69 69 Thank you!