Conservation and demand management by Ontario electric utilities in 2006 and beyond

An IndEco project report
IndEco has been assisting the Canadian Energy Efficiency Alliance (the Alliance) in advancing its positions to the Ontario Energy Board (OEB) as the Board considers the process local electric distribution companies (LDCs) should follow in their 2006 rates applications. The Alliance's involvement is limited to demand side management (DSM) activities, which are now referred to in Ontario as Conservation and Demand Management (CDM) when applied to electric LDCs. The Alliance has argued that the OEB should encourage aggressive DSM, broadly defined to include customer-side conservation programs, demand management and demand response programs, distributed generation, and utility-side loss reduction activities. Further, the Alliance stipulated that the OEB should allow the LDCs to include program costs for cost-effective DSM programs in their rates, should compensate them for lost revenues that result from their programs, and allow them to apply for an incentive for realizing net benefits. To assist LDCs in designing approvable programs, the OEB should develop a "Conservation Manual" that would lay out methodologies and default data on key program assumptions (such as net-to-gross ratios that measure free riders), measure lifetimes, discount rates, and avoided costs.

The Alliance position was advanced initially in filed evidence submitted on 18 January 2005:

Evidence 323 kb

This evidence was presented to the OEB during its oral proceeding by David Heeney, President of IndEco and Peter Love, Executive Director of the Alliance.

The Alliance subsequently filed an argument (14 February 2005) and a reply submission (28 February 2005) clarifying its positions, and responding to some of the positions taken by other parties in the proceeding.

Argument 137 kb

Reply submission 165 kb

About the Canadian Energy Efficiency Alliance

The Canadian Energy Efficiency Alliance is a not for profit organization established in 1995 to promote the efficient use of energy in Canada. The Alliance draws its membership from across industry and across Canada. The Alliance position is developed and refined through committee meetings and workshops, and is supported by a substantial majority of its members, but the Alliance recognizes that individual members have their own positions. All positions are approved by the Executive of the Board of Directors of the Alliance.

Related information

Ontario Energy Board documents on 2006 Electricity Distribution Rates
Canadian Energy Efficiency Alliance's Energy Efficiency Centre website
IndEco's article on regulatory frameworks for demand side management
Report on an Alliance workshop co-hosted by IndEco