HRM STREETLIGHTING OPTIONS UNSM LED Streetlight Workshop June 20, 2012

Existing Streetlighting System  Approximately 40,000 streetlights in HRM  HRM owns all streetlights within the former City of Halifax boundary(about 13,000 fixtures).  HRM pays NSPI for use and maintenance of approximately 27,000 streetlights. In 2012 this is estimated to cost approximately $2.3 million.

Streetlight Service  Confusion about Ownership  City of Halifax Boundary  Underground fed systems  Decorative Lights  NSPI/HRM service level standards differ  Maintaining System (Proactive vs Reactive)  Turn Around Times ( 3 days vs 7 days )  Outage Rates ( 1.6% vs 4.3% )

Benefits of LED Streetlights  Anticipated energy reduction of 50%.  Anticipated 7 ktonnes annual GHG emissions reduction(about 1400 cars off the road)  Life of light source approximately 20 years versus 5 years for existing High Pressure Sodium (HPS) technology  Opportunity to provide full cut-off fixture design

Phase 1 - In the Business?  Status Quo – HRM converts the remaining 11,000 fixtures the Municipality owns, NSPI converts the 27,000 fixtures it owns  HRM Owns all HRM Streetlights – HRM converts all 38,000 HRM streetlights to LED  NSPI Owns all HRM Streetlights – NSPI converts all 38,000 HRM Streetlights to LED

20 Year Life Cycle Cost Analysis (10 Year Implementation) OPTIONTOTAL NPVDELTA ALL HRM$60.4m STATUS QUO$70.0m$9.6m ALL NSPI$85.0m$24.6m

Financial Analysis  Significant investment  Total Capex ~$25-30M at current costs  What is the optimal conversion?  Right away  Wait and see  Other options  Payback  Funding implications

Considerations  Simple payback is in the 8 to 10 year range.  NSPI streetlighting service measure is based on turn- around times, not outage levels.  LED Streetlight maintenance costs are anticipated to be limited to warranty replacements for the first 10 years  LED fixture prices have dropped dramatically the last 4 years.  Stranded asset valuation will not impact the economic evaluation

Phase 2 - In the Business!  HRM/NSPI need to Reconcile quantities, types, wattages and locations of existing fixtures owned by the utility  HRM needs to optimize a ownership/operation model  HRM needs to optimize conversion implementation quantity/timing  HRM needs to prequalify LED fixture suppliers  HRM needs to get Regional Council approval to implement optimum plan

2010 LED Conversion Project  In 2010, HRM replaced 2100 HPS roadway fixtures with HPS streetlights.  Supply RFP and install Tender were issued separately  The supply evaluation was based on identified criteria and weightings.  Performance evaluation was based on designs for 5 typical road/street applications and compliance with RP8 for minimum light levels

LESSONS LEARNED  All street segments require lighting design based on pole spacing, setback, width of road and mounting height  Baseline lighting distribution data will help with evaluation of LED conversion  Ensure all parts, including photocells are designed for anticipated life of LEDs, i.e 20 years  Recycling needs to be adequately addressed  Educating the general public is critical to acceptance

QUESTIONS?