1. FortisBC Alternative Energy Services Inc.
Doug Slater
General Manager
FortisBC Alternative Energy Services Inc.
January 31, 2018
FortisBC

2. FortisBC Alternative Energy Services
Affiliate of FortisBC Energy Inc., a subsidiary of Fortis Inc.
Portfolio includes >5 million square feet, 50,000 MWH
Largest utility provider of onsite thermal energy in BC
Who we are:
FAES, an affiliate of FortisBC Energy Inc., is a wholly owned subsidiary of Fortis Inc., the largest investor-owned energy delivery utility in Canada with over $47B in total assets
What we do:
FAES got its start in thermal energy during the Terasen Gas days by helping fund the development of renewable energy infrastructure primarily focused on ownership geo-exchange systems.
Our business has since evolved and grown to own and operate a variety of on-site thermal energy systems. We define Thermal Energy Systems as the in-building central mechanical systems or energy centres that provide the space heating, space cooling and domestic hot water heating.
We currently have 27 operating projects across 45 sites in BC and have invested over $55 to date in acquisitions of Thermal Energy Systems.
Our in-building TES assets provide service to nearly 5 million square feet of residential, commercial/retail and office space customers and which constitutes approximately 50,000 MWh annually of energy for thermal energy.
FAES has commitments for another 30,000 MWh annually and an additional 2.5 million square feet to be operational by 2020.
We are the single largest utility provider of onsite thermal energy in BC today.

3. Example Projects Marine Gateway Sovereign Modello Empire TELUS Garden
Example Projects in Vancouver:
Marine Gateway at Cambie and Marine in Vancouver. This system incorporates a geo-exchange loop field plus waste heat recovery (commercial and grocery store
TELUS Garden here in downtown Vancouver. The system was designed and we have now successfully recovered the waste heat from TELUS’ data centre for use in the residential and office component
Another one of our project’s in Vancouver is Empire at Queen Elizabeth Park. This project uses a small on-site SHARC system which recovers heat from wastewater
Other
Other projects include the SOLO district, Modello and Sovereign projects in Burnaby as well as Seylynn Village in North Vancouver.
Empire
TELUS Garden

4. FAES Business Model
Acquire, own, operate and maintain in-building thermal energy systems including sustaining capital requirements
Technology agnostic; diverse portfolio of assets
Geo-exchange, waste heat recovery, variable refrigerant flow, heat pumps and hydronic systems
Developer Benefits
Financial savings
Leadership in energy sharing
System performance/optimization
Expertise
End-User Benefits
Simplicity
Stable & predictable rates
Peace of mind
Business Model:
The FAES business model is to acquire, own, operate and maintain centralized in-building or on-site mechanical systems (thermal energy systems) – for space heating, space cooling and DHW heating including sustaining capital requirements which ensures system performance over time.
Technology:
FAES is technology agnostic: we work with developers and mechanical consultants to determine the system technologies that provide the optimal solution for each project.​
FAES owns and operates a diverse portfolio of assets including renewable and recoverable technologies such as geo-exchange, waste heat recovery and variable refrigerant flow systems, as well as conventional technologies including heat pumps and hydronic systems.
Benefits – What’s in it for Developers and End Users:
As a third-party utility owner and operator of centralized thermal energy assets, our business model offers multiple benefits to both the developer and the end-users or customer:
For the developer:
Financial savings: the investment offered by FAES to acquire the thermal energy systems adds capital to the bottom line of the project, to help offset the cost of installing an upgraded, more energy-efficient solution with improved capabilities.
Leadership in energy sharing: We help by aligning the interests of diverse end-user groups to enable effective energy sharing and waste heat recovery. Furthermore, we provide a third-party intermediary for operational issues.
System performance and optimization: We focus on ensuring the thermal energy system delivers on its sustainability objectives through management of system performance and optimization over the long term.
Expertise: As the pioneer and leading thermal energy service provider in BC, we’re able to draw on our own expertise as well as engage with expert consultants and contractors to manage today's increasingly complex thermal energy systems.
For the end users or customers:
Simplicity: Our thermal energy rate includes the costs of initial capital, operation and maintenance, commodity fuels, replacement or sustaining capital, and insurance. This means one thermal energy rate, which consolidates all related expenses into a single line item for customers.
Stable and predictable rates: Our thermal energy rate is designed to smooth energy system costs over the life of service thereby helping create stable and predictable rates for customers.
Peace of mind: We provide worry-free service through managing the complexities of system operation, maintenance, optimization and sustainment over the long term

5. LCES Policy – “Utility-Owned On-Site”
FAES provides a solution for LCES Type #2a “Utility-Owned On-Site”
The way to think of “Utility-Owned On-site” is:
Akin to an NEU in terms of end-user infrastructure ownership, and
Akin to User-Owned in terms of the onsite physical infrastructure.
LCES type #2a requirements include:
Design and performance outcomes
System purchased and operated by a utility with sufficient expertise and capacity
Registration with the British Columbia Utilities Commission
Policy recognizes aggregation opportunities
LCES Policy:
As you’ve learned, if a developer of a new building chooses to pursue the LCES Pathway, the developer must also choose an LCES type.
The LCES Policy recognizes four types of systems.
The FAES business model of owning and operating in-building thermal energy systems provides a solution for type #2a “Utility-Owned On-Site”.
How to think of Utility-Owned On-Site:
The way to think of utility owned onsite is that end users would own essentially the same equipment as if they were attached to an NEU. The utility is responsible for all aspect of its care and maintenance.
However, it is like a User-Owned system in terms of the physical on-site infrastructure and opportunities for in-building energy sharing.
Requirements:
The city’s requirements for this type of LCES include design and performance outcomes as well as that the system must be purchased and operated by a utility with sufficient expertise and capacity.
FAES has a proven business model and streamlined legal agreements. We will work with the developer to execute definitive agreements and provide the evidence the City requires for security of a long-term energy services.
Furthermore, as one of the leading thermal energy service providers in the province and city, FAES has demonstrated successful operational experience with Low Carbon Energy Systems.
The final requirement from the city is in consideration of registration with the BCUC. To date FAES has successfully registered 10 Stream A projects with the commission.
Aggregation:
Another interesting item for consideration in the LCES policy pathway is that of aggregation. If a utility can demonstrate the operational carbon intensity in aggregate of the buildings serviced by such utility outperforms the City’s GHG requirements, there may be an opportunity to use this “extra GHG performance” towards meeting the requirements for another project.
This provides some incentive to capture onsite opportunities that may not be equally available to all developments.

6. Thank you To learn more, please contact: Lloyd Jacobs
Manager, Thermal Energy Solutions
Cell: