Affordable Housing, Electricity and the Conservation Bureau Low Income Energy Network Conference May 26, 2006 Julia McNally Manager Planning, Coordinating and Reporting Conservation Bureau TM

2 THREE KEY MESSAGES  Ontario Electricity Challenge  Role of the Chief Energy Conservation Officer and the Conservation Bureau  Our Conservation Challenge and Opportunities in Affordable Housing

TM 3 Ontario Power Authority  The Ontario Power Authority (the “OPA”), is a corporation without share capital created under the Electricity Act  Established in 2005 to provide leadership in planning and coordination of measures for electricity conservation and load management initiatives  OPA is responsible for ensuring an adequate, long- term supply of electricity in Ontario – this includes the integration of generation development, power system planning, and electricity sector development, in addition to the Conservation Bureau

TM 4 Conservation Bureau  Conservation Bureau is a division of the Ontario Power Authority and is headed by the Chief Energy Conservation Officer, Peter Love.  The Bureau consists of four sections  Commercial & Institutional (includes MUSH sector)  Residential  Industrial & Agricultural  Planning, Reporting & Coordinating  As well the Bureau has a Conservation Fund that is used to pilot projects that can be replicated across the province and Conservation Awareness budget for awareness/action projects

TM Targets:  5% reduction in peak electricity demand  10% reduction in electricity consumption Long-Term Target:  Create a conservation culture

TM 6 Vision for Conservation in Ontario  Ontario is a place where energy is used in an environmentally sustainable, economically productive and socially beneficial way. As North American leaders, we demonstrate our Culture of Conservation through our choices of energy use. Mission for the Conservation Bureau  To inspire a Culture of electricity Conservation in Ontario that supports and enables all energy consumers in making wise, efficient and productive choices, where we live, shop, play, learn and work. Objectives of the Conservation Bureau  Create and foster the development and delivery of CDM initiatives informed by the best available market knowledge  Develop needed infrastructure and market mechanisms to deliver sustainable Conservation & Demand Management  Champion the building of a Culture of Conservation to achieve sustained commitment to conservation

TM 7 ONTARIO’S ELECTRICITY CHALLENGE  25,000 MW (80% current capacity) going out of service by 2025  Potential investment of $70 billion likely required  Status quo not an option

TM 8 CONSERVATION AND DEMAND MANAGEMENT Conservation – Reduces consumption and demand at all times Demand Management – Shifts load from peak to off-peak hours

TM 9 GOVERNMENT INITIATIVES AND TARGETS FOR 2007  25 Government initiatives summarized:  Institutional framework  Set goals for renewables  Includes directing OEB to develop plan to install a smart electricity meter in 800,000 Ontario homes by 2007 and in every home by 2010 Government targets for 2007:  5% Reduction in weather- adjusted peak demand from 27,000 MW to 25,650 MW by 2007  10% Reduction by Provincial Operations by 2007, 66 Million kWh

TM 10 CURRENT CONSERVATION BUREAU INITIATIVES  Directives:  1000 MW Combined Heat and Power  500 MW DM / DR  100 MW Low Income / Social Housing  100 MW Lighting / Appliances  300 MW Toronto  150 MW Commercial Buildings/MUSH Sector  150 MW Electrically Heated Houses and Other Residential Upgrades  Conservation Fund & Conservation Awareness Program

TM 11 OPA Initiatives  The OPA has created a $ 1 million Technology Fund for pre- commercial products that are related to either energy efficiency or renewable energy.  This fund is jointly managed by the Conservation Bureau and the Electricity Sector Development branch of the OPA.  The OPA has recently announced a Standard Offer for renewable power:  Up to 10 MW Renewable  $0.11 for wind, biomass, small hydro $ for peak)  $0.42 for solar photovoltaic

TM 12 Integrated Power System Plan and Who Does What Study  OPA is developing an Integrated Power System Plan  It will deal with the conservation, supply, transmission, distribution and procurement process for energy in the Province.  It will involve extensive stakeholdering  “Who Does What” in Conservation  Looking at best way to operationalize government policy set out in Electricity Act  2 Phases  Phase 1 – role of LDC’s and CB in 2007, responsive to OEB  Phase 2- role of all players future CDM market  To be completed over summer 2006

TM 13 BUREAU RECOMMENDATIONS Ontario Energy Efficiency Act Ontario Building Code Ontario Fire Code PST Rebates Ozone Depleting Substances Other Barriers

TM 14 Program Implementation Strategies Fill the gapsFill the gaps –Complement and leverage existing energy efficiency and conservation programs Federal Government LDCs and Gas Utilities Local Community Groups –Facilitate maximum savings –Province-wide program access Utilize strategies that acquire resources in the near and long termUtilize strategies that acquire resources in the near and long term –Promote energy efficient products and services that will benefit residents and building owners alike Support and build on existing market provider networksSupport and build on existing market provider networks EnablingEnabling –Address multiple barriers to energy management program implementation and participation Legislative First cost and access to financing Information Perceived risks Phased approachPhased approach End State: Market Transformation

TM 15 Social Housing Sector* Low Income Housing Markets Program Components Private Rental Housing Single Homes / 1 st Nation Communities Energy Efficient End-use Products Building Envelope Improvements Operational Improvements Phase l: Launched March 28, 2006 Low-Income Conservation and Demand Management Program *For OPA’s program development purposes, the Affordable Housing Program initiative is categorized within the Social Housing Sector.

TM 16 Energy Efficient Product List Qualified List – Triple E Working Committee TRC Cost Effectiveness Test Financial Incentives Loan Guarantee Interest Buy-Down or Financial Grant Program Management Procurement Program Management Services Education Measurement & Verification Low Income CDM Program – Phase 1 Social Housing Implementer: SHSC “Green Light” Initiative Launched March 28, 2006 Program Mix

TM 17 Every Kilowatt Counts  The program was created to give every Ontario resident the ability to make effective conservation decisions.  Money savings coupons will include the following:  $5 off a two-pack or more of ENERGY STAR qualified compact fluorescent light bulbs;  $15 off a programmable thermostat to keep homes cool only when needed;  $5 off an electrical timer so lights are off when not needed; and  $25 off an ENERGY STAR qualified ceiling fan so that Ontarians can set their air conditioners’ temperatures a little higher and still feel the cooling benefits of well-circulated air.  The coupons will be redeemable at more than 1,600 participating retail locations in more than 400 communities across Ontario.

TM 18 Cool Savings Rebate  This program offered to Ontario residents with existing central Air Conditioning (AC) systems.  Money savings coupons will include the following:  $50 REBATE ON AN AC TUNE-UP  Residents that are currently on an AC annual maintenance plan do not qualify for this rebate.  Tune-up must be performed between April 21 to June 30,  Claims for Tune-up rebate must be received by August 1,  $75 (UP TO) REBATE TOWARDS NEW, INSTALLED PROGRAMMABLE THERMOSTAT  Only applies to customers who do not currently have a programmable thermostat.  Service must be performed between April 21 and August 31,  Claims for thermostat rebate must be received by October 1,  $500 REBATE ON REPLACEMENT OF AN EXISTING SYSTEM WITH AN ENERGY STAR® QUALIFIED SYSTEM  Installation must occur between April 21 and August 31,  Claims for ENERGY STAR® qualified system rebate must be received by October 1, 2006.

TM 19 Economic Demand Response (DR)  Participants will remove load from the grid at a 3 hour ahead signal based on a certain price level.  The price level at which curtailment occurs is known as the strike price and is agreed to by the participant and the OPA based on the season and the business situation.  By reducing the size of demand peaks through DR initiatives Ontario can potentially  avoid the cost for some expensive generation capacity  avoid the need for some expensive imports of electricity power  preserve the integrity of the transmission system and reduce some of the cost required for system capacity improvements

TM 20 Q & A “The "Conservation Bureau" wordmark, "C Star" logo, and "Power Of Conservation" tagline are trade-marks owned by the Ontario Power Authority”. Julia McNally Website: