1. Electricity Distributors Conservation and Demand Management RP-2004-0203

2. 2 Background April 7, 2005 May 31, 2004 - Minister’s Letter –Energy efficiency; –Behavioural and operational changes, benchmarking or “smart” control systems; –Load management, dual fuel applications, thermal storage, and demand response; –Fuel switching to reduce total system energy for a given end-use; –Programs and initiatives targeted to low income and other hard to reach consumers; and –Distributed energy options behind a customer’s meter such as tri- generation, co-generation, ground source heat pumps, solar wind, and biomass systems.

3. 3 Background (cont’d) April 7, 2005 Oct 5, 2004- OEB - Procedural Order –Deferral accounts –Development expenses –Application process –Filing requirements Dec 6, 2004 - OEB - Motions Day –Revenue protection or lost revenue adjustment mechanism (LRAM): EDR 2006 –Shared savings mechanism (SSM): 5% total resource cost (TRC) test of customer side programs

4. 4 Approved CDM Plans April 7, 2005 Dec 10, 2004 and Feb 18, 2005 – OEB approved 10 CDM plans: (>$110 million) OEB Decisions –Conditions of approval Quarterly reporting Annual reporting Plan modifications –Dec 10, 2004 “… But the one comment this Board would make about the programs and the one adjustment we would urge (the applicants) to make is to determine, having regard to the (LIEN) report, whether there's more that can be done in this area.” –Feb 18, 2005 “… the Board would simply ask Hydro One … if greater consideration could (be) give(n) (to) social housing and address the particular submissions that have been made by VECC.”

5. 5 Initiative Statistics April 7, 2005 CDM applications before the OEB: Number of LDC Applications84 Final Orders Issued77 Interim Orders Issued7 Customers Represented99% Budget-Approved Plans (Interim and Final)$163 million

6. 6 Approved CDM Initiatives April 7, 2005

7. 7 Low Income and Social Housing April 7, 2005

8. 8 Explicit Participation April 7, 2005 Aurora Hydro Connections LimitedNewmarket Hydro Limited Barrie Hydro Distribution Inc.Niagara Falls Hydro Inc. Centre Wellington Hydro Ltd.Oshawa PUC Networks Inc. Collus Power Corp.Parry Sound Power Corporation Enersource Hydro Mississauga Inc.Peninsula West Utilities Limited EnWin Powerlines Ltd.Port Colborne Hydro Inc. Erie Thames Powerlines CorporationPowerstream Inc. Guelph Hydro Electric Systems Inc.St. Catharines Hydro Utility Services Inc. Haldimand County Hydro Inc.Thunder Bay Hydro Electricity Distribution Inc. Hamilton Hydro Inc.Tillsonburg Hydro Inc. Hydro One Networks Inc.Toronto Hydro-Electric System Limited Hydro Ottawa LimitedWaterloo North Hydro Inc. Kitchener-Wilmot Hydro Inc.Wellington Electric Distribution Company Inc. London Hydro Inc.Whitby Hydro Electric Corporation

9. 9 Next Steps April 7, 2005 –Electricity Distribution Rates 2005 (April 1, 2005) –Quarterly Reporting (April 7, 2005) –Annual Reporting (March 30, 2006)

10. 10 Thank You April 7, 2005 For more information contact OEB Staff : Zora Crnojacki zora.crnojacki@oeb.gov.on.cazora.crnojacki@oeb.gov.on.ca Stephen McComb stephen.mccomb@oeb.gov.on.castephen.mccomb@oeb.gov.on.ca