Customer Energy Retrofit

Integration with Local Improvement Charges

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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

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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

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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

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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

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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

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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

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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

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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

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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

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LIC Pilot Planning – Draft Roadmap

* Assuming that one municipality has approved implementation with EGD

of an LIC pilot

Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13

Meet with potential municipalities to partner

Identify municipal partner for LIC Pilot

List and finalize terms of partnership

Project Launch - Develop charter

Identify stakeholders and mobilize team

Conduct Design Sessions and Identify Scope

Create Project Plan for Pilot & Get Approval

Start LIC Pilot Implementation

Develop Processes & Procedures

Design & Implement Infrastructure

Develop Marketing Plan

Prepare for Design Sessions

Communicate with key stakeholders

EGD's DSM LIC Pilot

Planning - Roadmap

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1212CONFIDENTIAL

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

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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