1. Customer Energy Retrofit Integration with Local Improvement Charges

2. 1 1 CONFIDENTIAL Enbridge Consultation Background On Bill Financing was proposed by Intervenors as part of Enbridge’s DSM 2013/2014 negotiations On October 3, 2012 EGD agreed with OBA and DSM consultation participants to work towards the possibility of offering a program such that –it would be feasible, viable and cost effective –three Consultative meetings would held to develop a project plan On November 15, 2012 EGD and OBF consultative agreed to integrate Community Energy Retrofit with LIC –EGD is seeking for a municipality to partner and pilot LIC

3. 2 2 CONFIDENTIAL EGD’s Guiding Principles Design a program that : –has minimal impact on customers’ energy bill –does not negatively affect Enbridge’s customer satisfaction –provides reasonable savings to expenditure ratio –leverages existing infrastructure and minimizes implementation cost

4. 3 3 CONFIDENTIAL What’s We Have Done So Far Launched Customer Energy Retrofit (CER) in July 2012 –Gained knowledge on what works and what doesn’t –Incorporating lessons learned for our 2013 CER program –2013 Budget of $1.8 Million with increased targets Researched what other jurisdictions are doing –Home retrofit funding models; target audience; loan mechanism Retained services of EnerFocus Consulting Outlined approach and goals for integration of CER with LIC –Listed key questions to be answered to help define the scope

5. 4 4 CONFIDENTIAL The Challenge & Our Approach There are too many unanswered questions around scope of LIC program –A pilot partnering with a municipality is our recommended approach –Get a clear understanding/answers of these design questions: define scope Identified eight key design elements that will constitute EGD’s DSM LIC program and for any given municipality –The approach is to discuss each element in a time-boxed fashion during a design session with stakeholders –When time runs out, we will park the topic for discussion to the next meeting along with action items and issues list

6. 5 5 CONFIDENTIAL LIC Pilot - Design Elements LIC Program Pilot 2. Transferability of Debt 7. Reputable Professionals 5. Standardized DSM Measures 4. Performance Indices 3. Processes & Procedures 1. Financier / Lenders 6. Target Audience & Campaigns 8. LIC Infrastructure Municipality Specific Elements

7. 6 6 CONFIDENTIAL Design Element – Details Element 1: Financiers/Lenders –City financed or banks/credit unions/insurance companies –How many to target; selection criteria; economy of scale –Secure low interest rates; who absorbs risks on default loans? –Loan terms; credit rating; paperwork; lien; size of transaction Element 2: Transferability of debt –Is it possible to tie debt to the property How to initiate, enforce and maintain –Regulatory approval and legal obligations associated with transferring debt from one account to another –Should there be a lien mechanism in place

8. 7 7 CONFIDENTIAL Design Element – Details (Cont’d.) Element 3: Processes & Procedures –Bill calculation; Billing; Payment Processing; Collections –Data and information flow –Collections and methodology for partial payment –Service Levels and Quality Control Element 4: Performance Indices –Actual savings of DSM measures can be a challenge Insufficient data Consolidation of savings from gas, electricity and water –What are the alternatives Deemed savings; AMR implementation; Additional meter readings at targeted houses; Other options

9. 8 8 CONFIDENTIAL Design Element – Details (Cont’d.) Element 5: Standardized DSM Measures –Need for an approved DSM measure list Standardized costs for various DSM measures –Include DSM measures for gas, electric and water? Non-DSM measures; Soft costs associated with retrofits Element 6: Target Audience & Campaign Programs –Who is eligible for LIC program? Small business; Low income; Home owners; High Rises; C & I –What marketing programs should be launched? Direct or Mass marketing Marketing Collateral (Flyers, posters, brochures, web content, visual aids, data sheets, white papers etc.) –Volume analysis for LIC

10. 9 9 CONFIDENTIAL Design Element – Details (Cont’d.) Element 7: Reputable Professionals –Standard to select reputable supplier and contractors in Ontario Training, licensing, monitoring, enforcing –Standards to be used for pre and post audit Certified Measurement & Verification Professional NRCan standards Element 8: LIC Infrastructure –Municipality to create/modify its existing IT infrastructure or outsource? –Support personnel Customer care processes; credit application processing; Liaison with financiers/contractors/suppliers/service providers; Accounting; Legal support

11. 10 CONFIDENTIAL LIC Pilot Planning – Draft Roadmap * Assuming that one municipality has approved implementation with EGD of an LIC pilot

12. 11 CONFIDENTIAL LIC Project Plan Outputs Template style ‘Information packet’ for municipalities –Draft plan and components to implement LIC –Draft plan and components to integrate with Enbridge CER –List of recommendations around what works; where standardization is beneficial Option to leverage EGD OBA functionality – Bill Ready Charge Enbridge CER program adjusted to adopt LIC –Attuned campaign plan and marketing collateral that will maximize uptake –Revise program plan to dovetail LIC with minimal disruption

13. 12 CONFIDENTIAL Next Steps Conduct meetings with Municipalities: –Present approach and identify interest –Conduct design session(s) –Define high level scope for pilot Report back to OBF and DSM consultation on Dec/11/’12 and going forward Participate in TAF working group and provide updates Develop project plan for pilot –Estimate costs, work effort, dependencies and constraints –Get approval for pilot implementation