Low Income Energy Efficiency Program Offerings from Natural Gas Utilities

Cara-Lynne Wade Manager, Low Income Marketing Union Gas

Erika Lontoc Manager, Residential and New Construction Marketing Enbridge Gas

Agenda • Overview of current program offerings • Status update on 2015-2020 DSM programming activities • Highlights of potential program changes, and potential new program concepts

Current DSM Plan, 2012-to-2014 Overview • Union/Enbridge DSM Programming is regulated by the Ontario Energy Board (OEB) , “DSM Plans” are filed by each utility with the OEB • Defined low income program principles, terms of reference • Current 2012-2014 DSM Plan ends on December 31, 2014

Target Customer

Program Offering

Single Family: • Income at or below 135% LICO • Social housing & Private homes • Single family & Part 9 buildings • Pay own bill (private market)

Multi-Residential: • Part 3 buildings • Social and Assisted Housing – Non profit & Co-ops • Shelters and Supportive Housing • Enbridge - Private buildings with high propensity of LI tenants

Single Family: • Free Home energy assessment • Free Insulation & air-sealing upgrades • Free Basic measures • Health & Safety initiative

Multi-Residential: • Building assessment • Incentives for prescriptive and custom projects • Direct install for in-suite measures • Enbridge – HSC Utility Management Program

Highlights • Single family: Social housing near saturation, focus beginning to shift to private market

New DSM Plan, 2015-to-2020 Overview • • • • •

DSM framework is moving from 3 years to six years, 2015-to-2020 Re-affirmation of importance of low income programs Focus on energy education and literacy DSM/CDM collaboration is a key theme throughout the years Opportunity to investigate/launch new DSM Programs

Programs

Timing

Interim Plans

Collaboration

• Utilities evaluating current programs and potential changes - input gathered from industry stakeholders • Utilities evaluating new potential programs - input gathered from industry stakeholders

• • • • •

Draft Guidelines received Sept 22, 2014 – Publicly issued Comments on Draft Guidelines due October 15, 2014 – by registered interveners and Utilities Final Guidelines to be issued by OEB – Date TBD Utilities to file new “DSM Plans” – Date dictated by Final Guideline release OEB’s Settlement Process – Interrogatories, negotiation, settlement

• Continue to offer current programs while awaiting final 2015-2020 DSM Plan settlement

• Conservation First Working Group (CFAWG) established to jointly create CDM framework • UG/Enbridge participating in OPA’s Low Income Working Group, providing insight on DSM LI programs, ensure alignment with CDM HAP offering where possible

Overview of Potential Program Changes and New Programs

Single Family Weatherization Overview Provides Low Income customers residing in single family dwellings with a whole home retrofit offering.

Target Customer

• • • •

Income at or below 135% LICO Social housing & Private homes Single detached & Part 9 buildings Pay their own bills (private market)

Program Offering

• • • •

Free Home energy assessment Free Insulation & air-sealing upgrades Free Basic measures Health & Safety initiative

Proposed Changes for 2015 & Beyond

• Complete all eligible Social LHC single family homes • Increased focus on private market 2015+, new channels, partnerships models • Investigate new measures based on cost effectiveness e.g furnaces

• Introduction of new measures based on cost effectiveness, e.g. heat reflector panels, hot water heaters, furnace replacement , DWHR • Market focus on energy education/awareness

Still being investigated: • Understand remaining potential for social housing • What other measures could we offer to those LI customers that do not qualify for our current offering? • What more can we be doing to promote energy efficiency awareness/energy education and literacy to support our programs?

Multi-Residential Social & Assisted Housing Overview Provides Social and Assisted housing providers with a building assessment and incentives upon completion of energy efficiency projects.

Target Customer

• • • •

Part 3 buildings as defined by OBC Social and Assisted Housing Non profits and Co-ops Shelters and Supportive Housing

Program Offering

• Building assessment • Energy audits • Incentives for prescriptive and custom projects • Direct install for in-suite measures

Proposed Changes for 2015 & Beyond

• Increased focus on non profits/ co-ops housing providers • Implement new markets approach strategy and marketing toolkit (messaging/ channels)

• Tiered incentives to encourage multi-measure retrofits • Focused marketing efforts towards shelters and supportive housing • Marketing and education literature will consider building and neighborhood demographics • Incorporate enabling program support initiatives: benchmarking, resident education

Still being investigated • What is the best approach for tenant engagement to support education/awareness and ultimately a call to action?

Benchmarking Program Overview Provides Social and Assisted housing providers with benchmarking services which will help identify areas of improvements.

Rationale for Program Concept • Increase Energy Management awareness • Provide tools and resources to assist social housing building owners/ operators in active monitoring of energy usage and saving potential • Drive change in behavior towards energy efficiency through comparative analysis of energy usage/ cost against similar buildings • Assist in identifying potential opportunities to reduce consumption and building operational savings.

Target Customer

• Social Housing Multifamily Municipal & Non-profits/ Co-ops • Both Gas & Electrically heated

Program Offering

• Free enrollment in Benchmarking • Active monitoring/ reporting • Identifying areas of improvement

Proposed Timing

• Union: Launch in 2015

Still Being Investigated • What barriers are social housing providers facing with regards to benchmarking and how can this program help? • What other complementary tools could be leveraged to assist housing providers to adopt energy efficiency action and behaviours?

Multi-Residential Private Market Overview • Promotes energy efficiency improvements in privately owned multi-residential buildings with a high propensity of low income tenants.

Rationale for Program Concept • High incidence/concentration of low income consumers residing in private multi-residential buildings • Low participation rate in commercial multi-residential program – low motivation to spend on these buildings; competing priorities.

Target Customer

Program Offering / Market Approach

• Low income tenants will realize indirect financial benefits, and non-energy benefits like improved comfort, quality of life and health conditions, and increased energy awareness. • Overarching government policy drivers: energy conservation, affordable housing and poverty. • Energy education, tenant and building staff engagement are critical components to sustainable savings. Proposed Timing

• Building owners • Property managers • Enhanced financial incentives • Collaborative partnerships, eg. Landlord organizations, municipalities, social planning agencies • Resident and building staff engagement strategies • Participation criteria for building owners • Program delivered by Utility Sales • Enbridge: Continue in January 2015 • Union: Pilot in 2015, subsequent launch post pilot

Still being investigated • Are there data sources from municipalities that could be utilized such as example poverty reports, social planning research, and/or other information to identify low income buildings?

Aboriginal Conservation Program Overview Provides the Home Weatherization Program to low income single family customers in aboriginal communities within Union’s franchise.

Target Customer

• • • •

SF in aboriginal communities HWP - Income at or below 135% LICO Basic measures – All SF customers Home has natural gas furnace

Program Offering & Approach

• • • • •

Measures offered same as HWP Utilize First Nations delivery agent Collaborate with band council Community energy conservation session Door-to-door canvassing

Rationale for Program Concept • Since launch of HWP in 2012, no participation from onreserve customers • Aboriginal customers (both on and off-reserve) respond better to community based marketing through band council and friendship centres • Union can leverage existing strong relationships to educate and get buy-in for energy conservation measures Proposed Timing

• Pre-launch activities in 2015-16 • Launch program in 2017

Key Considerations • Little data exists on number of on-reserve customers that will qualify from income and home perspective • Decision on how many/ which communities would depend on geographical proximity and band council election dates • Collaborate with OPA’s aboriginal conservation program in gas heated communities within Union’s franchise where possible Note: Enbridge will not be offering this program

Affordable Housing New Construction Program Concept Overview • Provides affordable housing builders and developers with incentives and services to encourage the construction, renovation and rehabilitation of high-performing, energy efficient affordable housing buildings. Municipalities and affordable housing networks will be engaged to promote the program offering.

Rationale for Program Concept • Prevents lost opportunities and promotes sustainable affordable housing • Supports the low income strategy: To provide a comprehensive suite of energy efficiency program offerings to meet the energy needs of buildings and residents in the affordable housing continuum. • Leverages long term sustainability and affordable housing municipal plans and targets. • Reduces energy operating costs for affordable housing residents.

Target Customer

• Developers & builders of new construction affordable housing projects – single/ multi-res buildings

Program Offering

• Financial incentives to exceed building code requirements • Provide technical support services • Work with municipal planners, developers, builders & construction trade

Proposed Timing

• Soft launch late Q2 2015 • Full launch in 2016

Key Considerations • The program leverages the 10-year municipal affordable housing plans. How can we fully engage municipalities to support the program? • How do we identify and reach out to affordable housing builders and developers? Other stakeholders in this sector that will need to be engaged. Note: Union Gas currently offers their multi-family AHCP program to the new affordable housing market.

Questions?

Low Income Energy Efficiency Program Offerings from Electricity Distribution Companies HSC Energy Forum Oct 29, 2014 Raegan Bond Vice President, Conservation and Demand Management PowerStream Inc.

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Agenda • Overview of current program offerings & results • Status update on 2015-2020 CDM framework implementation and programs • Highlights of potential program changes and potential program concepts

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Overview of current CDM framework and low income programs

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Conservation & Demand Management (CDM) Framework: 2011-2014 • Provincial target of 1330 MW and 6,000 GWh (cumulative) • All local electricity distribution companies (LDCs) required to delivery CDM programs • Individual LDC CDM Targets set out in their distribution licence by Ontario Energy Board • Province Wide Programs funded by Ontario Power Authority • Local Programs (LDC specific) funded by Ontario Energy Board • LDCs expected to provide CDM programs for all customers, including low-income • Two province wide low income programs are available: • Home Assistance Program (HAP) • Social housing Adder (SHA) within the Retrofit Program

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Home Assistance Program (HAP) Eligibility

Program Offering

• 3 ways participants can be eligible: 1. Income at or below 135% LICO 2. Recipient of one of the following social benefits: • The National Child Benefit Supplement • Allowance for the Survivor • Guaranteed Income Supplement • Allowance for SENIORS • Ontario Works • Ontario Disability Support Program (ODSP) • Utility LEAP grant 3. Rent or lease a home qualified as Social Housing • For a Home to be eligible, it must: • Be the participants' primary residence • Be 3 stories or fewer and have less than 6400 ft2 OR • Sub-metered high rise building 4 stories or more (common areas are not eligible) • Free Home energy audit • Free installations of the following types of measures: 1. Basic measures 2. Extended measures 3. Weatherization measures

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Retrofit Program Social Housing Adder (SHA) Eligibility

• SHA is available to: • Nonprofit social housing providers under the 2000 Social Housing Reform Act • Public housing corporations owned by municipalities • Nonprofit housing co-operatives as defined by the Co-operative Corporations Act • Nonprofit housing corporations under the Affordable Housing Program • Nonprofit organizations and municipal or provincial governments that manage or own residential supportive housing, shelters, and hostels • Common elements as well as individual units in a multi-residential building are eligible, but private low income individuals are not

Program Offering

• Tops up the incentives already offered under the ERII program to cover 50% of the project cost

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Program Results (2011- Q2 2014) HOME ASSISTANCE PROGRAM

RETROFIT SOCIAL HOUSING ADDER

PowerStream

Province

Number of Projects

1481

39,958

Number of Projects

2

Net Peak Demand Savings (kW)

97

3,543

Net Peak Demand Savings (kW)

7.5

32,930

Net Incremental Energy Savings (MWh)

48

Net Incremental Energy Savings (MWh)

1,072

PowerStream

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PowerStream Home Assistance Program Results (2011- Q2 2014)

22,854 CFL bulbs

25 window air conditioners

441 feet of hot water pipe insulation

20,811 ft2 of attic insulation

340 refrigerators

62 dehumidifiers

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PowerStream Retrofit Program Social Housing Adder Results (2011- Q2 2014)

298 fixtures of fluorescent tube lighting

121 fixtures of LED PAR lighting

34 LED Exit signs

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2015-2020 CDM Framework

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2015-2020 CDM Framework Overview • • • • •

• • •

Framework established by Minister of Energy in March 2014 CDM to remain mandatory activity for all LDCs CDM targets no longer in OEB distribution licence; now to be included in contract with OPA Provincial Target of 7 TWh (annual) and $1.84 Billion budget allocated by OPA to LDCs LDC’s must make CDM programs available to the following customer segments: Residential; Low-Income; Small Business; Commercial (including multi-family buildings); Agricultural; Institutional and Industrial. LDCs now responsible for both program design and delivery Increased LDC flexibility. Single portfolio level target and budget; no more program specific budgets. Enhanced focus on collaboration (with gas utilities and between LDCs) and integration of CDM within electricity system planning (regional/distribution planning)

Implementation • Energy Conservation Agreement posting by OPA: Fall 2014 • LDC CDM Plan Submission to OPA: Nov 1/14 – May 1/15. • Current contract and programs between LDCs and OPA to continue into 2015 until new framework/programs in place

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Overview of Potential Program Changes and New Programs

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Home Assistance Program • Current program extended to 2015 with no significant changes Potential future enhancements include: • New Audit and Education Protocols and Outreach Strategy •

• • • •

Introduction of New Program Rules, Eligibility Criteria and Measures (e.g. LEDs, GU24 Lighting Fixtures, Clothes Drying Racks, CO Sensors and Smoke Alarms) New LDC-specific Custom Measures Track Collaborative Gas Program Delivery Integration of Water Efficiency Measures Bi-Annual review/revision of Measures List and Eligibility

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Retrofit Program Social Housing Adder • Current program extended to 2015 with no significant changes. • Social Housing Adder will be payable subject to available LDC funds. Potential future enhancements: • Will be identified and considered as part of broader program design/improvement process by provincial LDC Working Group for Commercial & Institutional CDM Programs

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Gas – electric collaboration opportunities • Market Capability-Building • Joint Customer & Channel Engagement • Program & Technical Training

• Marketing & Communications • Cross-Promotion • Co-promotion

• Program Design • Measures Integration • Ability to Claim Savings

• Program Delivery • Joint & Contracted Account Management

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