1. Draft for discussions GT and/or HE Furnace - Energy use - Energy efficiency - Environmental issues - Markets - Cost - Scenarios - Scenarios bonus

2. Draft for discussions Residential energy use

3. Draft for discussions Emissions - For the GHG intensity emission in electricity sector around 750 kgGHG/MWh, Furnace with 90% of efficiency has the same GHG emission than GT with COP=3.75 - Below this intensity, Furnace has less emission. - Above this intensity, GT has less emission. - It is supposed that this intensity will be reached around 2019.

4. Draft for discussions Markets Canada ≈ 50,000 GT systems installed (source: CGC) 23,000 in Ontario 16,000 in Quebec 5,000 in British Columbia 2,500 in Manitoba 1,000 in Alberta 500 in Saskatchewan

5. Draft for discussions Markets TodayGTHPFR90 Energy cost (Elec. + NG) [$/y]2,8002,0002,600 Retrofitting cost [$]-25,0006,500 Maintenance cost [$/y]100300150 Future Natural Gas Cost Future Electricity Cost

6. Draft for discussions Payback based on RRO-ENMAX COP = 3.2

7. Draft for discussions Conclusions for residential sector Today - GT helps with energy efficiency better than FR9x - FR9x generates less GHG emissions than GT - FR9x has better financial/cost opportunities than GT In 2015 - GT helps with energy efficiency better than FR9x - GT and FR9x generate similar GHG emissions - FR9x has similar financial/cost opportunities than GT In 2020 and so on - GT helps with energy efficiency better than FR9x - GT generates less GHG emissions than FR9x - GT has better financial/cost opportunities than FR9x

8. Draft for discussions Conclusions for residential sector GT opportunities today - For customers that: - have lower furnace efficiency (55,000 households in AB are using furnace efficiency lower than 68 %) - have electricity at high rates (73% are based on RRO rates) - We have around 40,000 households in these conditions - around 13,000 households in perfect conditions - around 27,000 households in good conditions For stimulating the market with a 8 year of payback period, we can offer: - COP = 3.75 or higher, and - A bundle including the lower possible electricity cost (7 cents?), and - $3000 in provincial grants, or - Between $900 and $1,200 per year (TAX?), or - $ 1/month/customer (@ROR=8%)

9. Draft for discussions Summary NG Consumption [GJ/y] NG Elect. Consum. [kWh/y] Furnace AFUE [%] Customers with up to before efficiency or lower Energy Cost [$/y] Saved money [$/y] Emissions [tGHG/y] Saved Energy at residential [%] Saved Energy in the system [%] (Elect. Geothermal retrofit COP Housing today Energy uses [kWh/y] Or [GJ/y] Saved Emissions [%] NT Furnace retrofit Total grants [$] Reductions (TAX + CO2 + customer +..) [$/y] Payback [y] ROR [%] and years [y] to recover the money Socialization [$/m/cust/1000 systems per year] ) Electricity cost variation [$/MW/y/1000 systems] Equipment Cost [$] Maintenance Cost [$/y] Electricity Cost Year of Analysis Today GT NG Heat(Wat. )

10. Draft for discussions Summary Alberta Government fund [$M] Geothermal retrofitNT Furnace retrofit System installed Increase in Alberta GDP [%x1000] Created Jobs in Alberta Saved energy [TJ] Saved emissions [ktGHG] Years Improvement in energy use in residential sector [%] Provincial income [M$] (Business [%] People [%] ) Business [M$] Equivalent to residential consumption today Total grants [$] Reductions (TAX + CO2 + customer +..) [$/y] Payback [y] Equipment Cost [$] Maintenance Cost [$/y] Federal grant

11. Draft for discussions Summary GeothermalNT Furnace System installed Increase in Alberta GDP [%x1000] Created Jobs in Alberta Saved energy [TJ] Saved emissions [ktGHG] Improvement in energy use (residential.) [%] Provincial income [M$] Business [M$] Alberta Government fund [$M] Solar PVWindPower GT Subsidy per cent/kWh Grant per system (customer) [$] Simple Payback [y]