1. February 17, 2011 Managing Energy Cost and Supply Andrew Pride, Vice President, Conservation Ontario Power Authority CME Small Manufacturing Summit

2. 2 Agenda Ontario Power Authority (OPA) overview Opportunities to save money and generate new revenues Conservation programs for businesses Opportunities through the FIT Program Questions

3. 3 Ontario Power Authority Mandate: –Ensure reliable, cost- effective, sustainable electricity supply for Ontario Key activities: –Long-term power system planning –Procuring new supply –Creating a culture and enabling conservation across the province

4. 4 Conservation Conservation is our first priority –Less costly than building new electricity generators –Reduces greenhouse gas emissions –Provides a favourable return on investment for consumers Ontario’s conservation target by 2030: –7,100 megawatt-reduction in peak electricity demand –25 terrawatt-hours reduction in energy use So far, peak demand has been reduced by more than 1,700 megawatts since 2005.

5. 5 Conservation – What’s in it for you? Save money on your energy costs Generate additional revenues Help to reduce Ontario’s environmental footprint Contribute to a stronger Ontario economy

6. 6 Conservation Programs A variety of programs to help residential customers, businesses and institutions cut back their demand and save money –More customer focused and accessible –Make investment in conservation easier, providing guidance and financial help. Consumer Program Business (C&I) Program Industrial Program Low Income Program

7. 7 Conservation Program Uptake > 275,000 older and inefficient refrigerators and freezers have been removed from homes across Ontario > 170,000 participants have enrolled in the peaksaver program to lower stress on the system on hot summer days about 125,000 small businesses across Ontario have benefitted from the Direct Install Lighting program to date.

8. 8 Conservation Programs for Businesses For commercial, institutional, multi-family buildings and agricultural sectors  Incentives for retrofit (lighting, motors and HVAC etc,) of existing buildings  Incentives for energy-efficient new construction  Demand response  Direct load-control devices (AC & electric water heaters) for small businesses  Incentives to reduce load during relatively high price periods (voluntary)  Incentives for regularly shifting load from peak to off-peak periods (contractual)  Incentives for committing to reduce load when called upon (contractual)  Conservation awareness, education & training activities  Incentives for energy audits

9. 9 Conservation Programs for Businesses Small Business Lighting: up to $1,000 in free, energy-efficient upgrades Small Business A/C: up to $750 of free services and labour toward improving the operation and maintenance of your roof-top air conditioners Audit Funding: incentives to conduct energy studies of medium and large size facilities Retrofit Program: up 50% of project costs for pre-approved retrofits that result in true savings Existing Building Commissioning: helps commercial building owners to maintain and improve energy efficiency through low-cost, operations maintenance changes for chilled water plants.

10. 10 Conservation Programs for Businesses High Performance New Construction: provides design assistance and significant financial incentives for new construction additions and major renovation projects that exceed the Ontario Building Code Demand Response Voluntary DR1: pays participants to reduce their energy demand during peak times Demand Response Contractual DR3: a contractual program for businesses that can commit to specific obligations for a higher return in revenue Process and Systems: incentives of up to 70% of capital costs for large electricity users

11. 11 Visit our Conservation Website saveonenergy.ca –consumer program: saveONenergy FOR HOME –business program: saveONenergy FOR BUSINESS

12. 12 Opportunities - FIT Program Generate additional revenues Help to reduce Ontario’s environmental footprint Contribute to a stronger Ontario economy

13. 13 Feed-in Tariff (FIT) Program Open to various renewable energy supply technologies –Solar Photovoltaic (PV) –Wind –Waterpower –Biomass technologies (bio-gas, bio-fuel, landfill gas) Different prices for different technologies and project sizes Long-term contracts (e.g. 20 years) Prices that aim to cover total project costs and provide a reasonable rate of return over the contract term Can provide a predictable and stable source of revenue

14. 14 FIT Program Two streams: FIT and microFIT CFIT stream for commercial aggregators of microFIT projects is in development

15. 15 Consult with Your Local Distributor or Transmitter Early Before submitting an application, you must meet with the local electricity distribution company or transmitter to discuss: 1.Proximity of your proposed project to the existing grid 2.Estimate of capacity of the grid to accommodate additional electricity generation Upgrades to the grid may need to occur before a project can connect 3.Estimated cost to connect to the grid Once a project gets a FIT contract, the proponent must cover the cost of connecting the project to the grid.

16. 16 FIT Program Status Successful program –high volume of applications from across Ontario As of February 4, 2011: –FIT – 4,399 applications (16,323 MW) –microFIT – 25,245 applications (231 MW) –high level of interest and participation of ordinary people homeowners Aboriginal groups farmers community groups churches and schools Small businesses

17. 17 FIT Information and Resources Web Resources Feed-in Tariff –http://fit.powerauthority.on.cahttp://fit.powerauthority.on.ca –fit@powerauthority.on.ca microFIT –http://microfit.powerauthority.on.cahttp://microfit.powerauthority.on.ca –microfit@powerauthority.on.camicrofit@powerauthority.on.ca –Program call centre:1-888-387-3403 Green Energy and Green Economy Act (Bill 150) –www.mei.gov.on.ca.wsd6.korax.net/e nglish/energy/gea/www.mei.gov.on.ca.wsd6.korax.net/e nglish/energy/gea/ –More resources and information on the legislation RENEWABLE ENERGY FACILITATION OFFICE (Ministry of Energy) For questions regarding getting started with renewable energy, renewable energy approvals and permitting, Website: www.mei.gov.on.ca/en/energy/renewable www.mei.gov.on.ca/en/energy/renewable Email: REFO@ontario.caREFO@ontario.ca Phone: 1-877-440-REFO (7336)

18. 18 Questions?