re: bcuc - sustainable services ltd. - application for ... … · bcuc - stream a tes application...

15
~ SSL. September 4, 2018 British Columbia Utilities Commission Sixth Floor, 900 Howe Street, Box 250 Vancouver, BC V6Z 2N3 ATIN: Patrick Wruck, Commission Secretary SSL-Sustainable Services Ltd. 957 Langford Parkway Victoria, BC V9B OAS T: (250} 391-7260 F: (250} 391-7268 www.SSL-BC.com [email protected] via Email [email protected] RE: BCUC - Sustainable Services Ltd . - Application for Stream A TES Dear Mr. Wruck, Further to the Commission's Order dated June 5, 2018 directing SSL to file an application for regulatory approvals, please find enclosed our Stream A TES Application and supporting appendices. Sincerely, SSL-Sustainable Services Ltd . Kyle Taylor Manager cc: Lisa Parkes, Corporate Counsel - SSL B-1

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Page 1: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

~ SSL.

September 4, 2018

British Columbia Utilities Commission

Sixth Floor, 900 Howe Street, Box 250

Vancouver, BC V6Z 2N3

ATIN: Patrick Wruck, Commission Secretary

SSL-Sustainable Services Ltd.

957 Langford Parkway

Victoria, BC

V9B OAS

T: (250} 391-7260

F: (250} 391-7268

www.SSL-BC.com

[email protected]

via Email

[email protected]

RE: BCUC - Sustainable Services Ltd . - Application for Stream A TES

Dear Mr. Wruck,

Further to the Commission's Order dated June 5, 2018 directing SSL to file an application for regulatory

approvals, please find enclosed our Stream A TES Application and supporting appendices.

Sincerely,

SSL-Sustainable Services Ltd.

Kyle Taylor

Manager

cc: Lisa Parkes, Corporate Counsel - SSL

B-1

malura
Text Box
BCUC File 58524
Yvonne.Lapierre
Stream A Registration-Westhills
Page 2: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

BCUC - Stream A TES Application f or SSL-Sustainable Services Ltd. 2018-09-04

Stream A TES Application - Background:

Section 2.3 of the TES Guidelines state that two types of TES are considered by the Commission to be

Stream A Thermal Energy Systems. The second of these are "Any TES that does not meet the

requirements of an Exempt TES, without a CPCN or a CPCN exemption that has an in-service date prior

to August 28, 2014."

SSL was established in 2008 and began providing thermal energy as a municipal service through its

Community Energy System in 2010. Several years of planning, design and construction of infrastructure

preceded the system commencing operation, and as part of that, SSL requested a meeting with BCUC.

That meeting was held on June 3, 2008, between Brian Williston and Philip Nakoneshny of BCUC, and

Reg Stewart, Ryan McKenzie and Georgeann Glover of SSL, as well as two consultants working with SSL

on the creation of the system. A range of topics were discussed at that meeting, with SSL

representatives answering all of the BCUC representatives' questions, and the meeting did not result in

BCUC regulation of SSL.

We submit that the second basis for being considered to be a Stream A TES set out above exists for

situations exactly like SSL's where the thermal energy provider had commenced operation prior to

BCUC's Thermal Energy Guidelines being enacted. Not only is this the situation for SSL, representatives

of the company also went above and beyond simply determining whether BCUC appeared to regulate

thermal energy providers, and sought and attended a meeting with BCUC representatives to

ensure that it was in compliance with BCUC rules. We make this submission in support of SSL's

application to be considered a Stream A TES on the basis that it has an in-service date prior to August

28, 2014.

Name of Applicant:

Company Name:

BC Business Registration No.:

Year Registered:

Full Address:

Phone:

Email Contact:

Public or Privately held Business:

Name of Parent Company:

TES Location (address):

TES Service Area:

Primary Energy Centre:

Kyle Taylor

SSL-Sustainable Services Ltd .

Inc. No. 0822775

2008

204-957 Langford Pky, Victoria, BC V9B OAS

250-391-7260

[email protected]

Private

Westhills Land Corp {957 Langford Pky, Victoria, BC V9B OAS)

Westhills community (see Appendix A)

3011 Langford Lake Rd, Victoria, BC

Page 2 of 8

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BCUC - Stream A TES Application for SSL-Sustoinoble Services Ltd. 2018-09-04

Is this TES a:

New Construction Retrofit Purchase Extension to an existing TES In service prior to 2014/08/24

In Service Date of the TES:

April 2010

Description of the Construction phase-in or build-out period (in years):

Construction of the TES began in 2008, with commissioning of the first phase and establishment of

utility operations occurring in early 2010. Subsequent build-out of the TES - including both the primary

energy centre and thermal energy distribution network - was phased with the Westhills development

project and completed in 2017.

Service Provided:

Space heating is provided to all customers. Space cooling and domestic hot water heating is provided to

the majority of customers.

Primary Thermal Energy Sources:

Energy conversion technology used:

Heating:

Cooling:

Geo-exchange

Geo-exchange

The TES utilizes water-to-water heat pumps and plate heat exchangers in its primary energy centre.

Buildings served:

420 single-family homes; 4 town home strata complexes (32 units); 1 condo strata (68 units)

Approx. 110,000 sq-meters of serviced floor area

Municipal building permit number:

N/A

Page 3 of 8

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BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04

Location of TES facilities and description of site size. Include map or schematic diagram if possible.

The TES was established to provide heating and cooling services to end-users in the community of

Westhills in Langford, BC. SSL-Sustainable Services Ltd. ("SSL") delivers these services as part of a

Services Agreement with the City of Langford ("the City") and consistent with the terms and conditions

of Bylaw 1291, both of which define a contiguous Service Area within the municipal boundaries of the

City where the TES currently operates. Further details are provided in Appendices A and B.

Description of TES including energy centre and distribution system {drawing, diagram or description

of equipment, connections etc.)

The primary thermal energy source for the TES is a gee-exchange borefield consisting of 212 vertically

drilled wells combined into a closed-loop system. The gee-exchange borefield is located underneath

Goudy Field, which is part of an artificial playing surface and stadium complex owned by the City. The

TES also utilizes natural gas boilers as an energy source for backup and peak demand energy needs.

Finally, the TES is connected to Westhills Arena, a nearby ice rink facility owned by the City, which

provides supplemental energy to the TES in the form of waste heat generated by its refrigeration system.

Energy from the above-mentioned sources is routed through a primary energy centre which transfers

this thermal energy into a water-based distribution network. Each street within the service area

contains a pair of energy distribution mains, connecting all users to a common loop (similar to a water

system). Water is used to deliver heat to and from end-users because of its strong ability to store

thermal energy. The distribution network consists of two mains in every street: a "warm" pipe and a

"cool" pipe. The warm pipe contains water running at a higher temperature and is the main energy

source for space and domestic hot water heating. The cool pipe runs at a lower temperature and acts as

a cooling sink to remove heat and provide space cooling.

End users connect to the distribution network via on-site water-source heat pumps, which provide

functional heating or cooling to their buildings.

Describe system size and known energy demand.

Please refer to the "Load Forecast & Analysis" section (below) and Appendix B for details on system size and energy figures.

Description of whether system and or site is designed to be scalable and intended to connect to other

systems, buildings or locations.

The TES is broadly designed for scalability, as evidenced by its ability to expand from initially serving only

a handful of customers to its current service base of more than 400 connections. At this time, there are

no confirmed plans to scale the system beyond its current capacity.

Page 4 of 8

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BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04

Description of back up or alternative services available. Including information of provider.

In addition to the primary thermal energy source (geo-exchange), the TES also uses centralized natural

gas (FortisBC) boilers in its energy centre, along with a waste heat recovery system connected to a

nearby ice rink (owned by the City) . Most end user mechanical systems also include an electric (BC

Hydro) or natural gas (FortisBC) backup/heating component.

Any other information on service/energy provided and the scope of services and facilities.

SSL leases water-source heat pump systems to the majority of its end users. These systems are

designed to be compatible with the operating conditions provided by the overall TES. As part of this

arrangement, SSL is also responsible for the ongoing maintenance, repair, and eventual replacement of leased equipment.

While largely separate from the TES, SSL is also responsible for the delivery of potable water within the

Westhills Service Area. Water is provided under a similar structure to that of the TES, with SSL acting as

a service provider on behalf of the City in accordance with a local bylaw and Service Agreement.

Description of the use of municipal or public rights of ways.

SSL has installed infrastructure for the energy distribution system throughout the roads leading to and

within the Westhills Service Area. One such road, Lot D, is actually a titled lot (owned by the City)

making up a part of the Langford Parkway. There is infrastructure running under this road, including

two large distribution pipes, which is used to provide the Energy Service to the Westhills Energy Service

Area with no SRW or other charge in place formalizing SSL's rights to install such infrastructure nor

preserving SSL's ownership of this infrastructure. Similarly, as opposed to what is often the case for

major utility providers such as BC Hydro and Fortis, SSL and the City do not have a formal highway

license agreement in place for SSL's installation of Energy Service infrastructure in dedicated roads.

While the Services Agreement contemplated the granting of such an instrument by the City to SSL, it

was in fact never entered into by the parties. The attached Appendix Coffers a schematic plan showing

the areas where infrastructure is installed pursuant to a formal charge and areas where there is no such

formal charge or license agreement.

Name the customer(s) involved in the selection or signing of contracts.

N/A {Unclear what is being asked?}

Number of customers/end-users:

The TES currently provides service to 425 connections.

Page 5 of 8

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BCUC - Str eam A TES Application for SSL-Sustainable Services Ltd. 2018-09-04

Type of customers: (e.g.)

All customers are residential, including a mix of single-family homes, strata town homes, and a 68-unit strata condominium.

Is (are) the Customer(s) obligated or restricted to taking service from the TES? If so, how and why.

Customers are not required to receive service from the TES. Alternative options, such as electric

heating/cooling, are available through other providers (e.g. BC Hydro) and provisions exist for termination/disconnection of service from the TES.

What percent of the estimated TES cost was/will be competitively tendered?

System construction is complete and there are no confirmed plans for further expansion.

How else is cost reasonableness for construction of the facility assured?

System construction is complete.

LOAD FORECAST & ANALYSIS

I/We confirm that the load analysis and energy demand forecast was/will be completed by the

following qualified person(s):

Andrew Byrnes, P.Eng. {Pinchin Ltd.}

Information on peak loads (MW) and annual loads {MWh) by thermal energy end-use.

TOTAL Peak Load (MW) HEATING 1.627 MW

COOLING 1.396 MW Annual Loads (MWh) HEATING 2,346 MWh

COOLING 1,344 MWh

What is the method used to forecast the peak and annual loads? What are the key assumptions and

design references used?

Peak loads are based on actual plant data from 2016 and forecast based on 2018 customer buildings.

Annual loads are based on data from previous 12 months of operation as provided by the operator (SSL).

Page 6 of 8

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BCUC - Stream A TES Application for SSL-Sustainable Services Ltd.

What is the peak design output (MW) of the TES (not including peaking/backup systems)?

1.648 MW heating capacity

What is the peak design output (MW) of the peaking/backup system?

1.464 MW heating capacity

2018-09-04

Has the TES been designed to meet the full peak load for the site? If not, please explain other sources of peaking

Customer buildings include backup/peaking heat sources. This includes electric resistance duct heaters

in single-family homes and electric resistance or natural gas boilers in multi-family buildings.

Cost Estimates

Estimated Capital Cost:

Estimated Annual Operating Costs:

Approx. $11M

Approx. $0.SM

Page 7 of 8

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BCUC-Stream A TES Application f or SSL-Sustainable Services Ltd.

APPENDICES*:

Appendix A - Westhills Energy Service Area

Appendix B - SSL TES Distribution Schematic

Appendix C - SSL TES Right-Of-Way Schematic

2018-09-04

* attached separately

Page 8 of 8

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2

WESTHILLS ENERGY SERVICE AREA

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Page 10: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

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ARENA AND

BOLWING ALLY

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REV:

DESIGNED: DRAWN: CHECKED: REVIEWED:

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AutoCAD SHX Text
Westhills
Page 11: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

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AP B

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DWG

WESTHILLS PROJECT No.

GOVERNING AUTHORITY FILE No.

WESTHILLS DRAWING No.

003-GEO

003-GEO-02

SHEET 02 OF 05

REV:

DESIGNED: DRAWN: CHECKED: REVIEWED:DATE:SCALE: 1:2000

GEOTHERMAL MAIN SYSTEM

MAIN BOOK

SSL

DAV

RJR

2018/07/27

FOR CONTINUATION SEE PAGE 04

FO

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ON

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UA

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AG

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5

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1:200040 120m

LEGEND

- GEOTHERMAL MAIN COLD

- GEOTHERMAL MAIN WARM

- GATE VALVE

- GEOTHERMAL MANHOLE

AutoCAD SHX Text
Westhills
Page 12: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

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WESTHILLS PROJECT No.

GOVERNING AUTHORITY FILE No.

WESTHILLS DRAWING No.

003-GEO

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SHEET 03 OF 05

REV:

DESIGNED: DRAWN: CHECKED: REVIEWED:DATE:SCALE: 1:2000

GEOTHERMAL MAIN SYSTEM

MAIN BOOK

SSL

DAV

RJR

2018/07/27

LEGEND

- GEOTHERMAL MAIN COLD

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AutoCAD SHX Text
Westhills
Page 13: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

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AP B

ASE.

DWG

WESTHILLS PROJECT No.

GOVERNING AUTHORITY FILE No.

WESTHILLS DRAWING No.

003-GEO

003-GEO-04

SHEET 04 OF 05

REV:

DESIGNED: DRAWN: CHECKED: REVIEWED:DATE:SCALE: 1:2000

GEOTHERMAL MAIN SYSTEM

MAIN BOOK

SSL

DAV

RJR

2018/07/27

LEGEND

FOR CONTINUATION SEE PAGE 02

- GEOTHERMAL MAIN COLD

- GEOTHERMAL MAIN WARM

- GATE VALVE

- GEOTHERMAL MANHOLE

FO

R C

ON

TIN

UA

TIO

N S

EE

P

AG

E 0

5

AutoCAD SHX Text
Westhills
Page 14: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

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TWO GATE VALVES

BY-PASS

TEMPERATURE

AND PRESSURE

SENSORS

AIR VALVES

TEMPERATURE

AND PRESSURE

SENSORS

AIR VENT

AIR VALVES

AIR VALVES

TEMPERATURE

AND PRESSURE

SENSORS

AIR VALVES

JB ELECTRICAL

2" BY PASS

NO VALVES

BLOW OFF IS UNDER

PAVEMENT IN BARREL

DEC ACCEPTED IT AS IS

SADDLE LOCATION

TEMP & PRESSURE SENSOR

CAUTION VALVES

RIGHT HAND CLOSE

DEW/DEC VALVE AND INSTRUMENT

CHAMBER-2 (3800X1600)(LXW). 2 PAIR

SHUT-OFF VALVES. TEMPERATURE

SENSORS/PRESSURE SENSORS PAIR.

DEW/DEC EDUCTOR CHAMBER

(3000X1600)(LXW).

EDUCTOR ASSEMBLY AND PAIR OF

BLOW-OFFS.

DIRECT BURIED

GATE VALVE.

TYPICAL OF 2

AIR VALVES

AIR VALVES

DEW/DEC VALVE AND

INSTRUMENT CHAMBER

(3800x1600) (LxW). 2

PAIR SHUT-OFF

VALVES.

DIRECT BURIED

GATE VALVE.

TYPICAL OF 2

2-4" VALVES

REDUCED TO 2"

2-4" SERVICES

LOW PT FLUSHOUT

CHAMBER

2-4" VALVES

REDUCED TO 2"

CHAMBER

LINE VALVES OUTSIDE OF

BUILDING

3 PAIRS OF GATE

VALVES IN CHAMBER

DEW/DEC MAIN LINE

BLOW-OFF ASSEMBLY

PAIR

DIRECT BURIED

GATE VALVE.

TYPICAL OF 2

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TEMPERATURE

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0

1:200040 120m

WES

THILL

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iday,

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14, 2

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DWG

WESTHILLS PROJECT No.

GOVERNING AUTHORITY FILE No.

WESTHILLS DRAWING No.

003-GEO

003-GEO-05

SHEET 05 OF 05

REV:

DESIGNED: DRAWN: CHECKED: REVIEWED:DATE:SCALE: 1:2000

GEOTHERMAL MAIN SYSTEM

MAIN BOOK

SSL

RJR

2018/07/27

- GEOTHERMAL MAIN COLD

- GEOTHERMAL MAIN WARM

- GATE VALVE

- GEOTHERMAL MANHOLE

LEGEND

FO

R C

ON

TIN

UA

TIO

N S

EE

P

AG

E 0

4

FOR CONTINUATION SEE PAGE 04

FOR CONTINUATION SEE PAGE 02

FO

R C

ON

TIN

UA

TIO

N S

EE

P

AG

E 0

2

DAV

AutoCAD SHX Text
Westhills
Page 15: RE: BCUC - Sustainable Services Ltd. - Application for ... … · BCUC - Stream A TES Application for SSL-Sustainable Services Ltd. 2018-09-04 . Stream A TES Application - Background:

July 31, 2017 I For Information o::J "lot D" (Langford Pky)

• Titled lot/ owned by City of Langford

• No SRW or Hwy Licence Agreement

"lot 2" {Goudy Field) • Titled lot/ owned by City of Langford

• Subsurface infrastructure pursuant to SRW

• City of Langford public roads

• No Hwy Licence Agreement {SRW is N/A)

·~__,, -~::o~

LJ[J -