1. Climate Change and Planning to Respond to Demand for Energy Services FortisBC Electric Resource Planning Advisory Group Paul Wieringa Electricity and Alternative Energy Division B C Ministry of Energy and Mines July 28, 2015

2. NERC Regions

3. Utilities: Paying Attention to Demand
For the past 10 years:
Supply: Increasingly, environmental concerns pushing clean/renewable resources
Demand: Energy efficiency
Future:
Demand: Increasingly, environmental concerns pulling electrification; productivity
Technology
Supply: continued focus on clean/renewable resources

4. Plans
2002: BC Energy Plan: Incremental Supply from IPPs for BC Hydro, strengthen BCUC, energy efficiency
2007: BC Energy Plan: energy efficiency 50% of incremental supply for BC Hydro, 93% clean resources province-wide
2008: Climate Action Plan: revenue neutral carbon tax, GHG targets, renewable and low carbon fuels

5. 2010 Clean Energy Act GHG reduction targets
S.18 Prescribed undertakings
Energy efficiency 67% of incremental supply
93% clean or renewable resources
Exempted projects and procurements from BCUC approval, expanded scope for BCUC on environmental and social issues.
Export market growth potential: surplus and insurance
Builds on revenue neutral Carbon Tax: $10/MT---$30/MT
Policy shift: greater focus on environment, reducing CO2 emissions, energy efficiency while maintaining an export oriented focus.
Policy: private sector and First Nations to build electricity generation; set clear targets; provide clear pricing signals on CO2.

6. Importance of Energy Efficiency

7. 1. Accelerating Energy Efficiency
Utilities Commission Act - DSM Regulation
Expand utility investment in DSM programs
Incentives, education, and technical support
Low income programs
Portfolio approach
Developing Codes and Standards
LiveSmart BC: Efficiency Incentive Program
Incentives and support for residential energy efficiency upgrades
LiveSmart BC: Small Business Program
Advice and support for small businesses to save energy
On-bill utility financing
Utility-based loan program tied to the meter
Can transfer to new owner or tenant when occupancy changes

8. DSM Regulation Address greenhouse gas emissions
Value emissions in cost-effectiveness tests
Places natural gas energy savings on more equal footing with clean electricity supply as an emission-reduction strategy
BCUC must compare electricity DSM against cost of clean long-term BC electricity supply—zero emission clean energy alternative (ZEEA)
Not export or spot market

9. 2. Focus on Customers’ Bills
10 Year Rates Plan for BC Hydro
Keep rates predictable
$2.4 billion/year investments in aging and new infrastructure
Government Approved BC Hydro IRP
Focus on conservation first, managing IPP resources, continued development of Site C and support for LNG
Burrard Thermal shutdown
Clean Energy Strategy to promote smaller clean energy opportunities and First Nations participation

10. Site C
Third Dam on Peace River
1,100 MW of capacity; 5,100 GWh/yr of energy
Lowest Cost
 Keeps rates low
Provides Capacity
Flexibility
Lowest GHG emissions

11. 3. Areas of Demand Growth
LNG; 8 new mines and 9 upgrades or expansions targeted under BC Jobs Plan
Electrifying the upstream oil and gas sector
Transmission expansions
Electrification (vehicles, heat pumps, etc.)
There are many unknowns about demand in BC. For FortisBC Electric, I will use the example of electric vehicles to illustrate a desired market transformation to lower emissions and lower the cost of transportation. (Electrifying the oil and gas sector is less applicable to FortisBC Electric and therefore I will focus on other areas and use transportation as an example.)

12. Transportation Fuel Volumes
Fuel Reported
Units
(millions)
Quantity
2010
2011
2012**
Gasoline
litres
4,459
4,311
4,089
Ethanol
235
263
252
Diesel
2,977
3,411
3,389
Biodiesel 61 96 89
HDRD 31 59 69
LNG Kg
0.16
2.4
Electricity
KWh
167
169
178
Hydrogen
0.18
0.26
0.28
CNG m3
4.35
4.82
0.64
Propane *
133
0.65
* Propane was under-reported in 2010.
** The 2012 quantities are 2/3 of 2012/13 quantities for Part 3

13. Clean Energy Vehicle (CEV) Program
$10.6 million over the next three years from Innovative Clean Energy (ICE) fund
$7.5 million for point-of-sale incentives, and dealer and sales staff incentives for electric and hydrogen fuel cell vehicles;
$1.59 million for investments in charging infrastructure and hydrogen fuelling infrastructure;
$1 million to assist fleets in adopting CEVs ; and
$500,000 for research, training, technology development and public outreach to help grow a local clean transportation technology sector
The Clean Energy Vehicle (CEV) Program has been reintroduced as of April 1, 2015.
$10.6 million over the next three years from Innovative Clean Energy (ice) Fund
$7.5 million for point-of-sale incentives, and dealer and sales staff incentives for electric and hydrogen fuel cell vehicles;
$1.59 million for investments in charging infrastructure and hydrogen fuelling infrastructure;
$1 million to assist fleets in adopting CEVs ; and
$500,000 for research, training, technology development and public outreach to help grow a local clean transportation technology sector

14. Clean Energy Vehicle (CEV) Program
Eligible vehicles and the maximum point-of-sale incentive amounts :
Battery Electric Vehicle: $5,000
Hydrogen Fuel Cell Vehicle: $5,000 plus $1,000 fuelling incentive
Plug-In Hybrid Electric Vehicle /Extended Range Electric Vehicle with a minimum battery capacity greater than 15 kilowatt hours (kWh): $5,000
Plug-In Hybrid Electric Vehicle/Extended Range Electric Vehicle with a minimum batter capacity less than 15kWh but greater than 4kWh: $2,500
Eligible vehicle list and information at
Vehicle rebate information:
Battery Electric Vehicle: $5,000
Hydrogen Fuel Cell Vehicle: $5,000 plus $1,000 fuelling incentive
Plug-In Hybrid Electric Vehicle /Extended Range Electric Vehicle with a minimum battery capacity greater than 15 kilowatt hours (kWh): $5,000
Plug-In Hybrid Electric Vehicle/Extended Range Electric Vehicle with a minimum batter capacity less than 15kWh but greater than 4kWh: $2,500

15. CEV: Outcomes in BC More than 2000 EVs on the road
692 public Level 2 charging stations
30 DC fast charging stations (17 installed)
306 residential Level 2 charging stations
Student training, research and development in electric vehicles and charging infrastructure
The development of guides and tools for planning and installing infrastructure in public spaces and in strata- owned buildings
Public outreach strategy and campaign (Emotive)
List of outcomes in BC (self explanatory)
Student training, research and development bullet refers to the:
Academic & Capacity Building Fund from the previous CEV Program which included:
Station planning
Buyer behaviours
Policy analysis
Grid impacts
Niche projects

16. Climate Leadership Plan
Live
Reduce consumption; energy efficiency
Fuel switching, district energy, net zero buildings
Community design
Travel
Efficient movement of people and goods
VKT
Transit
Clean transportation fuels
Work
Competitiveness
R&D, Technology
Efficiency
Value
Pricing
Adaptation
Energy efficiency/Productivity/Competitiveness linkages
Industrial energy reporting/ISO50001
• Pay-As-You-Save energy efficiency financing
• Efficiency supported by Smart Grid – electric vehicles, demand management

17. CLP Process Survey and submissions until August 17, 2015.
Draft Plan for comment December 2015
Final Plan March 2016.

18. Integrated Resource Planning
An integrated resource plan is a utility plan for meeting forecasted annual peak and energy demand, plus some established reserve margin, through a combination of supply-side and demand-side resources over a specified future period. (Regulatory Assistant Project/Synapse, 2013)
Increasingly, more difficult to understand demand and demand-side resources, than supply-side resources.
Climate change mitigation measures change end-use consumption.

19. Final Thoughts Demand for Electricity Services
Energy efficiency reduces demand
Electrification increases demand
Transportation
Space and Water Heating
New electrification metrics
Technology
Market Transformation
Incentives
Role of utilities
End use focus, downstream of the meter