1. Electricity Conservation & Demand Management Programs & Low-income Customers Role of the Ontario Energy Board by Zora Crnojacki, OEB Staff LIEN Annual Conference, Peterborough May 26, 2006

2. 2 OEB Electricity CDM Initiatives to date May 26, 2006 2005 CDM Plans Approved Board required Quarterly Reporting Board required Annual Reporting 2006 Electricity Distribution Rates-Board approved additional CDM spending (where applied for) Review of 2005 Annual Plans (in progress)

3. 3 CDM 2005 Initiative 2005 CDM applications approved: Final Orders Issued77 Budget-Approved Plans $163 million To be spent by September 30, 2007 Quarterly and Annual Reporting to the Board

4. 4 2005 CDM Approved Budgets

5. 5 Review of 2005 Annual Reports March 31, 2006 “Annual Reports” filed by the LDCs with the Board. May 12, 2006 the Board posted a letter on the web site regarding the review of the “2005 Annual Reports”: The Board called for a 2-phase review: 1.Public Review by stakeholders 2.“Audit” Review by Board Staff.

6. 6 How to see the 2005 Annual Reports? Individual 2005 Annual Reports can be viewed at: http://www.oeb.gov.on.ca/html/en/industryrel ations/ongoingprojects_distconservation_ap plications.htm http://www.oeb.gov.on.ca/html/en/industryrel ations/ongoingprojects_distconservation_ap plications.htm

7. 7 Letter re: review of the “2005 Annual Reports”

8. 8 Public Review of the 2005 Annual Reports The deadline for submissions to the Board is June 9, 2006. Submissions to be sent to the attention of Board Secretary.

9. 9 Audit Review of selected 2005 CDM Reports The “Audit” Review is not envisioned as a strict audit process. It’s a focused review of a sample of the reports. Board Staff, under the direction of the Chief Regulatory Auditor, will conduct a review of a selected sample of the CDM reports. –The scope of the “audit” review will be: The accuracy of the Total Resource Cost calculation. Spending the money according to the proposed timing. Programs implementation as committed.

10. 10 Preliminary Overview 2005 CDM Implementation (as reported by LDCs) Reported 2005 CDM Savings and Spending Local Distribution Company Toronto Hydro Hydro One Enersource,Hamilton.Ottawa PowerStream, Veridian Remaining 70 LDCs Benefit/Cost Ratio (TRC Test)1.11.95.54.9 (average) $ spent per KW saved$1,052$1,500$3,035$ 1,624 (average) $ spent per KW hour2.5 cents5.0 cents4.5 cents2.4 cents (average) Gross CDM expenditures in 2005 $ 13.5 million $ 4 million$ 6.7 million$ 36.3 million Net TRC Value$ 3.2 million$3.3million$ 4.6 mllion$ 28.7 million Total energy saved in 200591.6 million KWh 8.2 million KWh 20.8 million KWh157 million KWh Total planned to be saved over the life of the plan 544 million KWh 80 million KWh 148 million KWh1.28 billion KWh Total peak demand energy saved 12,800 KW690 KW2,200 KW23,000 KW

11. 11 Utilities with Low Income and Social Housing Programs Implemented in 2005 (as reported by LDCs) Low Income Measures 1.Aurora Hydro Connections Limited 2.Bluewater Power Distribution Corporation 3.Brantford Power Inc. 4.Centre Wellington Hydro Ltd. 5.Collus Power Corp. 6.EnWin Powerlines Ltd. 7.Guelph Hydro Electric Systems Inc. 8.Haldimand County Hydro Inc. 9.Hydro One Networks Inc. 10.Kitchener-Wilmot Hydro Inc. 11.Niagara Falls Hydro Inc. 12.Parry Sound Power Corporation 13.Peninsula West Utilities Limited 14.Port Colborne Hydro Inc. 15.St. Catharines Hydro Utility Services Inc. 16.Tillsonburg Hydro Inc. 17.Waterloo North Hydro Inc. 18.Wellington Electric Distribution Company Inc. 19.Whitby Hydro Electric Corporation Social Housing Measures 1.Barrie Hydro Distribution Inc. 2.Enersource Hydro Mississauga Inc 3.Erie Thames Powerlines Corporation 4.Fort Frances Power Corporation 5.Hamilton Hydro Inc. 6.Hydro Ottawa Limited 7.London Hydro Inc. 8.Newmarket Hydro Limited 9.Oshawa PUC Networks Inc. 10.Powerstream Inc. 11.Toronto Hydro-Electric System Limited 12.Hydro One Networks Inc. 13.Kitchener-Wilmot Hydro Inc.

12. 12 2005 Reported Spending and Energy Savings Social Housing CDM Programs Social Housing CDM Measures $ Budget $ Spent Savings KWh Barrie Hydro Distribution Inc. $ 350,000 $ 37,000109,832 Enersource Hydro Mississauga Inc. $ 265,000 $ 50,0000 Erie Thames Powerlines Corporation $ 5,000 $ -0 Fort Frances Power Corporation $ 20,216 $ -0 Hamilton Hydro Inc. $ 225,000 $ 104,0004,093,230 Hydro Ottawa Limited $ 156,000 $ 21,0000 London Hydro Inc. $ 50,000 $ 3,5000 Newmarket Hydro Limited $ 300,000 $ 6,0000 Oshawa PUC Networks Inc. $ 100,000 $ -0 Powerstream Inc. $ 268,000 $ 34,969437,500 Toronto Hydro $ 1,215,000 $ 147,3710 Hydro One Networks Inc. $ 1,500,000 $ 38,0000 Kitchener-Wilmot Hydro Inc. $ 100,000 $ 4,550343,161 $ 4,554,216 $ 425,3904,983,723

13. 13 2005 Reported Spending and Energy Savings Low Income CDM Programs Low Income $ Budget $ Spent 2005 Savings kWh/yar Aurora Hydro Connections Limited $ 40,000 $ -0 Bluewater Power Distribution Corporation $ 60,000 $ 23,000931 Brantford Power Inc. $ 100,000 $ 120,000122,573 Centre Wellington Hydro Ltd. $ 5,000 $ -0 Collus Power Corp. $ 10,000 $ -0 EnWin Powerlines Ltd. $ 50,000 $ 2,5130 Guelph Hydro Electric Systems Inc. $ 150,000 $ 21,486336,901 Haldimand County Hydro Inc. $ 20,000 $ -0 Hydro One Networks Inc. $ 3,500,000 $ 9,0000 Kitchener-Wilmot Hydro Inc. $ 100,000 $ 18,4001,328,800 Niagara Falls Hydro Inc. $ 25,106 $ -0 Parry Sound Power Corporation $ 14,000 $ -0 Peninsula West Utilities Limited $ 12,627 $ -0 Port Colborne Hydro Inc. $ 7,500 $ -0 St. Catharines Hydro Utility Services Inc. $ 99,000 $ 3,0000 Tillsonburg Hydro Inc. $ 19,887 $ -0 Waterloo North Hydro Inc. $ 30,000 $ 3,0004,320 Wellington Electric Distribution Company Inc. $ 10,000 $ 1049,814 Whitby Hydro Electric Corporation $ 40,000 $ -0 $ 4,293,120 $ 200,5031,803,339

14. 14 2006 Electricity Distribution Rates- additional CDM spending approved The following LDCs had the CDM budget approved as part of their distribution rates 2006 approval by the OEB: –Bluewater Power ($ 90 K rate base incremental CDM + $ 160 K) expense CDM) –Brantford Power ($ 313 K CDM expense) –Burlington Hydro ($ 400 K CDM expense) –Enersource (about $ 1.5 million CDM expense) –Festival Hydro ($ 9,000 expense on CDM) –Halton Hills Hydro ($ 90 K rate base incremental CDM + $ 88 K expense on CDM)

15. 15 2006 Electricity Distribution Rates additional CDM budget approved As part of approval of 2006 electricity distribution rates the Board approved additional $ 2.8 million for CDM spending by local distribution utilities. How to see Board Orders approving CDM in 2006 EDR? http://www.oeb.gov.on.ca/html/en/consumer s/understanding/2006edr_decisions.htm http://www.oeb.gov.on.ca/html/en/consumer s/understanding/2006edr_decisions.htm

16. 16 Closing Remarks Year 2005 was spent by utilities setting up their programs. In 2006 focus will be on implementation and results. Still huge budget “out there” for Social Housing and Low Income programs.

17. 17 Board’s CDM web site Where to find the information on the OEB related CDM initiatives: –http://www.oeb.gov.on.ca/html/en/industryrelations/o ngoingprojects_distconservation.htmhttp://www.oeb.gov.on.ca/html/en/industryrelations/o ngoingprojects_distconservation.htm

18. 18 Thank You May 26, 2006 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