What is the appropriate role for electricity distributors in conservation?

An IndEco project report
IndEco developed short term and long term recommendations for the future role of Local Electricity Distribution Companies in Conservation and Demand Management (CDM) for the Ontario Power Authority, a government-established, independent organization with responsibility for long-term electricity planning and promotion of conservation and energy efficiency. The recommendations were summarised in a report titled, Options Paper for Consultation: Role of LDCs in CDM 2007, which was prepared in partnership with Navigant Consulting. The options paper serves as a basis for consultation on how to continue the aggressive pursuit of electricity conservation in 2007 that was begun by the Ontario government in 2004.

The options paper addresses three questions posed to the OPA by the Ontario Energy Board, which regulates the distributors, relating to how to make the transition from where we are now in CDM to where we want to be in the long-term. The questions addressed three issues, the level of CDM funding for LDCs, the appropriate role of LDCs in CDM and the source of LDC CDM funding. A broad range of options and their rationale have been included to stimulate discussion, however, the OPA may not be able to implement particular options presented.

The options paper presents three possible scenarios:

1. LDCs would be responsible for all incremental CDM spending, would design and deliver as many CDM programs as possible and the funding for the LDCs' CDM activity would be mandatory through distribution rates.

2. LDCs have responsibility for certain incremental CDM programs and the OPA has responsibility for others through a coordinated approach with LDCs, and sources of funding are voluntary through distribution rates.

3. LDCs would not receive any incremental funding for CDM in 2007, their role in CDM would be minimised, and no funding source would be required.

Input from the consultation on this options paper in June 2006, was used to assess options and make recommendations for the transition.

We invite you to review the full report.

CB CDM Options Paper.pdf

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