Topic:"Cost Effectiveness" in M04819

DATE FILED: February 27, 2012 Page 14 of 45 1  a management discussion and analysis of any major discrepancies relative 2 to the original plan's intent and forecasts 3  a summary of costs and savings for each program or target market are...

AI summary The document discusses recommendations for evaluating DSM program savings through a revised multi-year process, including ongoing tracking, free ridership surveys, and full-scale evaluations. It also proposes a trigger mechanism to ensure energy savings targets are met and outlines reporting requirements to the UARB and other stakeholders.

ENSC's Response: ENSC recognizes that lack of financial capital may be a barrier to customers adopting energy efficiency measures. Removal of this barrier could increase participation in energy efficiency programs and therefore increase en...

AI summary ENSC acknowledges financial barriers to energy efficiency and proposes on-bill financing with NSPI and other partners. Discussions include expanding financing options, leveraging bank partnerships, and using rebates for mortgage down payments. Cost-benefit analyses will guide program implementation in 2012.

RECENT ADJUSTMENTS The regulatory framework to oversee DSM began with NSPI as the interim administrator and transitioned as the DSM administrator role was taken over by ENSC in the fall of 2010. As part of its decision on ENSC's 2012 filin...

AI summary The UARB adjusted DSM regulatory framework criteria in 2012, including shifting TRC threshold evaluation to the program level, adopting cumulative savings analysis, and initiating multi-annual plan considerations. These changes followed ENSC's 2012 filing and NSPI's prior interim administration role.

4 COST ALLOCATION METHODOLOGY: OVERVIEW ENSC's cost recovery methodology requires it to recover the actual costs incurred for its programs from the customers that benefit from those programs. This is accomplished through a two-stage alloca...

AI summary ENSC uses a two-stage cost allocation methodology to recover program costs from NSPI rate classes. Initial costs use simplified estimates, while audited financial data later refine allocations via the CAM. A true-up mechanism adjusts rates based on actual costs, ensuring accurate recovery from customer classes.

SAVINGS 2013 2014 2015 Gross Savings (Incr. Ann.) 1st Yr Electricity Svgs (MWh) 20,330 25,391 30,816 Levelized-Lifetime (MWh) 230,543 290,735 358,749 Net Savings (Incr. Ann) 1st Yr Electricity Svgs (MWh) 10,150 12,768 15,664 Levelized-Life...

AI summary The Green Heating Systems initiative demonstrates cost-effectiveness with a benefit-cost ratio exceeding 2.8 and passing both the Total Resource Cost and Program Administrator Cost tests, indicating that for every dollar invested by ENSC, there is approximately $3 in savings.

a message from Paul Pettipas CEO, Nova Scotia Home Builders' Association As the cost of energy rises, homeowners need to explore different ways to conserve energy to lower their monthly costs. Programs like the Efficiency Nova Scotia Demon...

AI summary Paul Pettipas, CEO of the Nova Scotia Home Builders' Association, highlights the benefits of energy-efficient homes through the Efficiency Nova Scotia Demonstration Homes program. These homes reduce carbon footprints, lower long-term energy costs, and promote environmental initiatives despite higher initial construction costs.

EnerGuide 80 vs. EnerGuide 92+ The minimum standard for an R-2000 home is an EnerGuide rating of 80. Many homeowners work to achieve this minimum standard without considering the added benefit in exceeding it with additional energy efficie...

AI summary The document compares EnerGuide 80 (minimum standard) and EnerGuide 92+ (demonstration homes), highlighting that exceeding the minimum standard yields significant long-term energy savings. While initial costs for energy-efficient homes are higher, monthly savings offset these expenses. The text emphasizes environmental benefits and long-term financial value of energy-efficient upgrades.

DATE FILED: February 27, 2012 Page 14 of 45 1  a management discussion and analysis of any major discrepancies relative 2 to the original plan's intent and forecasts 3  a summary of costs and savings for each program or target market are...

AI summary The text discusses recommendations for evaluating and adjusting the Demand Side Management (DSM) program, including the adoption of a trigger mechanism if savings fall below 75% of forecasts and a revised evaluation approach with ongoing tracking, surveys, and reporting to the UARB.

DATE FILED: February 27, 2012 Page 44 of 45 1 7. CONCLUSION 2 The 2013-2015 DSM Plan provides a sound approach for enabling Nova Scotians to achieve significant and cost-effective energy savings while building capacity for continued long-t...

AI summary The 2013-2015 DSM Plan is described as a sound approach for achieving significant and cost-effective energy savings in Nova Scotia, incorporating past experience and aiming for ambitious energy efficiency goals while maintaining financial responsibility.

RECENT ADJUSTMENTS The regulatory framework to oversee DSM began with NSPI as the interim administrator and transitioned as the DSM administrator role was taken over by ENSC in the fall of 2010. As part of its decision on ENSC's 2012 filin...

AI summary The regulatory framework for Demand Side Management (DSM) transitioned from NSPI to ENSC in 2010. The UARB adjusted its oversight approach in 2012, including shifting cost-effectiveness thresholds to the program level, adopting cumulative savings evaluations, and considering multi-annual plans. These changes aimed to enhance performance-oriented frameworks while emphasizing stakeholder consultation.

Conservativeness Bottom-up estimates tend to be quite conservative, notably because they don't capture all the small efficiency projects that we know have been occurring at NPPH. Top-down estimates tend to be close to reality because they...

AI summary Bottom-up energy efficiency estimates are conservative as they exclude small projects at NPPH, while top-down estimates using real data are more accurate. Estimates reflect avoided energy costs over time, not absolute energy savings.

SAVINGS 2013 2014 2015 Gross Savings (Incr. Ann.) 1st Yr Electricity Svgs (MWh) 20,330 25,391 30,816 Levelized-Lifetime (MWh) 230,543 290,735 358,749 Net Savings (Incr. Ann) 1st Yr Electricity Svgs (MWh) 10,150 12,768 15,664 Levelized-Life...

AI summary The Green Heating Systems initiative demonstrates cost-effectiveness with savings increasing from 2013 to 2015. Gross and net electricity savings rose annually, while unit costs remained stable. The program passed both the Total Resource Cost and Program Administrator Cost tests, showing that for every dollar invested, ENSC achieved approximately $2.87 in savings.

a message from Paul Pettipas CEO, Nova Scotia Home Builders' Association As the cost of energy rises, homeowners need to explore different ways to conserve energy to lower their monthly costs. Programs like the Efficiency Nova Scotia Demon...

AI summary Paul Pettipas, CEO of the Nova Scotia Home Builders' Association, promotes the Efficiency Nova Scotia Demonstration Homes as a model for energy-efficient residential construction. These homes reduce carbon footprints and long-term energy costs, despite higher initial building costs, offering substantial energy savings over time.

news, as well as on allNovaScoti a.com. As part of the program, the builders were required the homes to be completed by October 1st so they can be open to the public for an eight-week viewing period. During these eight weeks, industry prof...

AI summary The Efficiency Nova Scotia Demonstration Homes program showcases energy-efficient residential construction, aiming to educate Nova Scotians on cost-effective and sustainable home building. Homes were completed by October 1st for an eight-week public viewing period, highlighting reduced carbon footprints and energy savings.

Efficiency Nova Scotia Corporation 2011 Evaluation Report The logic model We proposed a modification for the logic model to include other parties beside ENSC. We sent the modification to the PM for comments. Source: General Q: Please indic...

AI summary The document outlines a process evaluation questionnaire for Efficiency Nova Scotia Corporation's EnerGuide for Existing Houses program, focusing on program partners, evaluation plans, marketing strategies, and data management challenges. It also includes questions about program barriers and cost-effectiveness testing.

ility) Q: 10th point: about receiving more incentives than the total cost. How do you verify this? And what happens if you have such a case? Rebate Application form: This form needs a revision date. C: The logic model was developed by the...

AI summary The text includes questions about program evaluation, incentive verification, and cost-effectiveness testing. It references a 2011 evaluation report by Efficiency Nova Scotia Corporation and discusses program partners, assumptions about distortion effects, and the use of social cost tests for emission reduction.

eving net electricity savings of approximately 4.8 GWh for the year 2011. With regard to net demand savings, the combined overall target of the C&IC and CINC program components was 10.4 MW in 2011. Ref.: 5725 4 Commercial & Industrial Cust...

AI summary The 2011 evaluation report discusses the Commercial & Industrial Custom and New Construction (CINC) program's eligibility criteria, emphasizing cost-effective energy-saving measures. ENSC has authority to determine eligibility and screens for free-ridership before offering incentives, typically providing support only for measures beyond common practice.

eral Q: is there a program logic model? Q: When the program was initially designed did it include some distortion effects (free-riders, spillover) and were they quantified to establish net savings? Q: Do you perform the cost effectiveness...

AI summary The text contains a series of questions related to the evaluation of the Commercial & Industrial Custom and New Construction Program, including program logic models, distortion effects, cost-effectiveness tests, program partners, evaluation plans, and database usability. It also references an evaluation report and recommendations.

5b. By forcibly extracting money from working Nova Scotians, we are depriving them of the means by which they can improve their own energy efficiency through their own efforts, at a much lesser cost. Nova Scotians need information and guid...

AI summary The argument asserts that forcibly extracting funds from Nova Scotians hinders their ability to improve energy efficiency independently. It references past participation in the federal EnerGuide program (now ecoEnergy – Retrofit Homes), which was cut due to high administrative costs. The province, facing economic challenges, cannot afford similar programs, as citizens are already burdened by mandatory funding.

13. Suggested savings frequently proven to be more expensive Converting an existing electrically heated home to a fossil fuel appliance heated home is often a very expensive option. Many of these homes do not have the physical room for suc...

AI summary The text argues that energy-saving measures like converting electric heating to fossil fuels or using compact fluorescent bulbs often result in higher costs due to installation expenses, product failures, and hidden consumer costs. It challenges ENSC's claims of savings, emphasizing that true savings must reflect direct consumer benefits, not just vague metrics.

hould adopt the new technology. These producers first needed to build the demand for HD technology before they could use traditional pull strategies to differentiate themselves from their competition. Leading up to the 07/08 economic colla...

AI summary The text discusses the formation of Efficiency Nova Scotia (ENSC) amid climate change momentum pre-2007-08 economic collapse, positioning ENSC to promote energy efficiency through pull incentives. However, current economic distractions hinder ENSC's long-term mandate to reduce 'dirty' energy consumption.

Total Sales 16 15 - 17 Given the combined activities of each sector, including large industrial shutdowns, expansions, - etc., total sales grew at an average annual rate of 1.0 percent over the 5 years ending 2008, but - 19 then had a 3.6...

AI summary Total sales in Nova Scotia grew at 1.0% annually from 2004-2008 but fell 3.6% in 2009 due to economic slowdown. Forecasts show a 1.3% annual decline over 2011-2021 due to energy conservation, compared to 0.8% without conservation programs. Billed sales are projected to drop from 11,840 GWh (2011) to 10,430 GWh (2021).

Figure 2

AI summary The document references a regulatory proceeding in Nova Scotia involving energy pricing models, demand-side management, and economic indicators. Key entities include Nova Scotia Power Inc. (NSPI) and programs like ELI 2P-RTP and 1P-RTP. Economic factors such as GDP, CPI, and RCGOODS are analyzed alongside energy metrics like HDD and NSR.

Industrial Sector Sales 8 9 10 - In 2010, the industrial sector represented 34 percent of Nova Scotia total electricity sales. This group is comprised of customers who process raw materials or manufacture finished goods. It includes both p...

AI summary The industrial sector in Nova Scotia accounted for 34% of total electricity sales in 2010, driven by manufacturing and resource industries. Large customers dominate energy consumption, with DSM effects significantly impacting usage. Economic factors like GDP and employment influence demand, modeled via econometric equations using historical sales data and economic indicators.

Total Sales 16 15 - 17 Given the combined activities of each sector, including large industrial shutdowns, expansions, - etc., total sales grew at an average annual rate of 1.0 percent over the 5 years ending 2008, but - 19 then had a 3.6...

AI summary Total sales in Nova Scotia grew at 1.0% annually from 2003–2008 but dropped 3.6% in 2009 due to economic slowdown. Over the 10-year forecast period, sales are expected to decline at 1.3% annually with conservation programs, versus 0.8% without them. Billed sales are projected to fall from 11,840 GWh (2011) to 10,430 GWh (2021).

upgrades, in the Low Income program. 1 Request IR-2: 29 programs exhibited a TRC ratio of 1.0: 30  2013 and 2014 – Existing Residential, New Residential, and Home Energy 31 Report. 32  2015 – New Residential 33 34 The significance of a T...

AI summary The text discusses the TRC (Total Resource Cost) ratios for various energy efficiency programs, noting that a TRC of 1.0 indicates projected benefits and costs are equivalent. It highlights the impact of assumptions such as savings baselines and free ridership on program outcomes and the sensitivity of TRCs to changes in avoided costs.

Figure 4.3 2014 Lifetime Benefits ($ million) a TRC Lifetime Costs ($ million) b TRC Lifetime Net Benefits ($ million) c Total Resource Cost Test (TRC) d RESIDENTIAL DSM PRO GRA RESIDENTIAL DSM PRO GRAMS Efficient Product Rebates e 8.2 5.1...

AI summary Figure 4.3 presents a table summarizing the lifetime benefits, costs, and net benefits of various demand-side management (DSM) programs in Nova Scotia. The table includes residential, business, and enabling strategies programs, with data expressed in 2013 dollars. The table highlights the cost-effectiveness of different initiatives, such as efficient product rebates and direct installation.

1 Introduction On March 30, 2012, Efficiency Nova Scotia Corporation (ENSC) identified an error in an IR prepared by Navigant on behalf of ENSC as evidence in NSUARB-E-ENSC-R-12 (the Proceeding). In addressing this error, Navigant subseque...

AI summary Efficiency Nova Scotia Corporation (ENSC) identified an error in a report by Navigant, affecting the Energy Efficiency Resource Assessment Model (RAM Tool) used for ENSC's 2013–2015 DSM Plan. Navigant revised the RAM Tool, addressed systemic errors, and adjusted the Total Resource Cost (TRC) calculation to align with California's approach, which treats free rider incentives as costs. The report outlines error details, revisions, and quality assurance measures.

3 Changes to and Testing of the Revised RAM Tool After fixing the above noted error, the revised RAM Tool has undergone significant testing by Navigant to confirm the veracity of the results. This testing included sample calculations of re...

AI summary The revised RAM Tool was tested by Navigant after fixing an error, confirming correct NTG factor treatment in measure-specific TRC results and program parameters. Navigant recalculated parameters like Net Avoided Cost Benefits and Total Resource Cost Test, and validated ENSC's 2013-2015 DSM Plan investments.

Parameter Impact of Error ENSC Investment ($) Understated by $3.9M (8.4%) Lifetime Benefits ($) Understated by $13.8M (13.3%) Total Resource Cost Test (TRC) No change Program Administrator Cost Test (TRC) Understated by 0.1 (4.5%) Table 2:...

AI summary The table outlines the impact of errors on 2013 projected results, showing that ENSC investment and lifetime benefits were understated by significant percentages, while the Total Resource Cost Test (TRC) remained unchanged and the Program Administrator Cost Test (TRC) was understated by a smaller percentage.

s we presented in D.06-06-063 involved only one participant, the issue of how to fold in free rider considerations on the cost side of the TRC equation was never explicitly addressed in that decision. In fact, the only time we have discuss...

AI summary The 2007 SPM Clarification Memo addresses unresolved issues from prior decisions (e.g., D.06-06-063) regarding the application of the NTG ratio to energy efficiency program costs. It highlights concerns that the 1988 SPM Correction Memo's TRC cost equation may unfairly advantage rebate programs over direct install programs by misallocating free rider costs, requiring reevaluation in post-2005 portfolio planning.

customer financial incentive, program administration costs and the NTG ratio are the same under the two delivery approaches. 9 This can be seen from the numerical 7 See D.06-06-063, p. 72. 8 As we note in Section 10, the SPM defines the "p...

AI summary The text discusses the comparison of two delivery approaches for customer financial incentives, program administration costs, and the NTG ratio. It references the SPM and PG&E's comments on the TRC test, highlighting differences in perspectives on cost-effectiveness and rebate definitions.

Process EDR Group conducted the following activities: - Initial familiarization with model structure/function/concepts through a Navigant-led webinar on April 18th, and a review of Navigant's model documentation, quality control policies,...

AI summary EDR Group reviewed Navigant's model for ENSC's DSM plan, verifying net-to-gross ratio application and TRC test consistency. Activities included model comparisons, error detection, webinars, and email communication with Navigant to address discrepancies and clarify model structure.

Economic Development Research Group, Inc. (EDR Group) is a consulting firm focusing specifically on applying state-of-the-art tools and techniques for evaluating public investments and policies. The firm was started in 1996 by a core group...

AI summary The Economic Development Research Group, Inc. (EDR Group) is a Boston-based consulting firm established in 1996, specializing in impact analysis, market/strategy analysis, and benefit/cost analysis for public policies and private investments. They focus on energy, environment, transportation, and economic development, with expertise in energy efficiency, renewable energy, and utility pricing studies.

Transportation Analysis Tools TREDIS Spreadsheet and Web Tool . EDR Group initially developed TREDIS (Transportation Economic Development Impact System) as a spreadsheet tool for use in assessing the regional economic benefits of transport...

AI summary The document describes three transportation analysis tools: TREDIS, ADE, and ABC. TREDIS is a web-based tool for assessing economic benefits of transportation projects across Canada and the US. ADE evaluates airport development economics, while ABC is a database for airport benefit-cost analysis used by several states' DOTs.

Energy Efficiency Evaluation Economic Impacts to the Eastern CN Provinces of Energy Efficiency Programs. EDRG recently completed an analysis (under subcontract to Environment Northeast) of economic impacts from proposed energy-efficiency p...

AI summary EDR Group conducted economic impact analyses for energy efficiency programs in Nova Scotia, New England, Texas, Wisconsin, and Iowa. Evaluations focused on residential, commercial, and industrial markets, assessing impacts on customer investments, energy savings, job growth, business competitiveness, and policy implications. Models measured economic effects across fuel sources and program scenarios.

Energy Technology Policies & Programs Economic Impact of Small Solar & On-Site Distributed Generation Programs. For the Connecticut Clean Energy Fund, EDR Group developed a state economic impact evaluation of the state solar rebate program...

AI summary EDR Group conducted economic impact evaluations for solar rebate programs, clean technology standards, and energy conservation services in Massachusetts. Studies included benefit-cost analyses of solar initiatives, hazardous substance regulations, and low-income conservation programs, assessing factors like emissions savings, tax incentives, and technology efficacy.

Air Quality Economic Impact of Regional Greenhouse Gas Initiative. EDR Group was technical consultant for analysis of Regional Greenhouse Gas Initiative (RGGI) – a consortium of nine Northeastern & Mid-Atlantic states to implement a region...

AI summary EDR Group analyzed the economic impact of the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program by nine Northeastern and Mid-Atlantic states. The study assessed effects on retail electricity prices, household/business costs, jobs, and income generation in the region.

STAFF For analysis of spreadsheet or other tools pertaining to energy efficiency, the applicable senior staff are Lisa Petraglia and Glen Weisbrod. Both are highly experienced in energy program evaluation. Working under their direction are...

AI summary Staff members Lisa Petraglia, Glen Weisbrod, Adam Winston, and Derek Cutler are highlighted for their expertise in energy program evaluation and spreadsheet tool analysis. They have prior experience reconciling inconsistencies in job impact databases, transportation benefit-cost systems, and economic impact models for government agencies.

lying economic impact models for energy program and pricing studies in Wisconsin, Michigan, Louisiana, Wyoming, New York, Connecticut Vermont, other New England states and national evaluation studies. Ms Petraglia has given numerous speech...

AI summary The text outlines Ms. Petraglia's expertise in economic impact modeling for energy programs across multiple U.S. states and Canada, including projects on solar strategies, energy efficiency, and greenhouse gas initiatives. Adam Winston is highlighted as an Economic Analyst at EDRG specializing in spreadsheet tools for policy evaluation.

Cost-Benefits Tab:

AI summary The Cost-Benefits Tab lists acronyms and their expansions relevant to a Nova Scotia regulatory proceeding, including organizations, programs, and legislation. No substantive analysis or arguments are present in the provided text.

Avoided Costs (Cell Block CU40:DV500 in Cost-Benefits Res, CU40:DV800 in Cost-Benefits C&I): Same issue/change as the Tech cost above. Took out the application of NTG because the Avoided Costs were being applied to Net Savings and the appl...

AI summary The text discusses the correction of a double application of NTG in the Avoided Costs calculation for specific cell blocks in the Cost-Benefits sections, aligning with a prior technical cost adjustment.

WHAT ARE YOU CONCLUSIONS? - My conclusions are as follows: - a) The DSM programs proposed for 2013-15 are modified continuations of programs previously approved by the Board. The modifications of programs reflect ENSC's experience to date...

AI summary The conclusions support the approval of modified DSM programs for 2013-15, updated avoided cost calculations, inclusion of NTG ratios in TRC and PAC calculations, a multi-year approach for energy efficiency, and a modified methodology for allocating energy efficiency program costs.

WERE THE AVOIDED COSTS CALCULATED BY NSPI USING THE SAME

AI summary The document raises a question about whether Nova Scotia Power Inc. (NSPI) used the same methodology to calculate avoided costs, likely in the context of regulatory proceedings involving demand-side management programs and cost recovery mechanisms.

22 HAS ENSC APPLIED THE AVOIDED COSTS TO CALCULATE TRC'S FOR

AI summary The document examines whether Efficiency Nova Scotia Corporation (ENSC) correctly applied avoided costs in calculating Total Recoverable Costs (TRC) for a regulatory proceeding. Key entities involved include ENSC, Nova Scotia Power Inc. (NSPI), and the Program Development Working Group (PDWG). The analysis focuses on methodological compliance with Integrated Resource Planning (IRP) and Demand Side Management (DSM) frameworks.

23 EACH PROGRAM IN THE SAME MANNER AS IN PRIOR YEARS? - 25 ENSC(Multeese) IR-12 states that the "TRC calculation methods used from year to year - are consistent". However, the TRC formula provided in ENSC(Multeese) IR-5(a) is - 27 differen...

AI summary The document questions whether programs are being handled consistently with prior years, noting ENSC's claim of consistent TRC calculation methods. However, the TRC formula in ENSC(Multeese) IR-5(a) differs by incorporating the Net-to-Gross (NTG) ratio into the numerator and part of the denominator, unlike prior years. References to ENSC(Avon) IR-9(a) and ENSC(Multeese) IR-5 (Confidential) are cited.

12 Q: What is the purpose of your testimony? - 13 A: I discuss and provide recommendations to the Board regarding four issues in the 14 2013–2015 DSM Plan Filing by Efficiency Nova Scotia Corporation (ENSC), 15 including the following inpu...

AI summary The testimony provides recommendations on four issues in ENSC's 2013–2015 DSM Plan, including improving avoided cost documentation, allocator choice for system benefits, supporting enabling strategies allocation, and enhanced bill impact reporting.

3 III. Avoided Costs - 4 Q: What are your concerns about the avoided costs used in screening the DSM - 5 programs? - 6 A: The avoided costs are critical in determining the cost-effectiveness of measures, 7 programs and enhancements. - 8 Ef...

AI summary The concern is that the avoided costs used in screening Demand-Side Management (DSM) programs lack sufficient detail and transparency. Efficiency Nova Scotia's filing does not include information on avoided costs, and the discovery responses provided by NSPI are deemed superficial and incomplete.

6 The parties simply have no way of reviewing the development of the 7 avoided costs. Hence, the parties and the Board cannot reasonably review the 8 basis for the reported cost-effectiveness of the programs. 9 Even for the information tha...

AI summary The parties and the Board cannot reasonably review the cost-effectiveness of the programs due to the lack of available information on avoided costs. NSPI has claimed confidential treatment for certain public information, such as projected capacity and firm capacity from future wind plants.

13 Q: Are there any areas in which you can identify the need for improvements in 14 NSPI's estimates of avoided costs? - 15 A: Yes. Even from the limited documentation available, there are some apparent 16 errors in the avoided-cost develo...

AI summary The response identifies multiple flaws in NSPI's avoided-cost estimates, including omitted transmission/distribution costs, incorrect assumptions about wind power needs, unaccounted RES credit sales, misclassified plant costs, and flawed line-loss calculations. It also notes a lack of seasonal differentiation in avoided-cost modeling.

5 Q: Why does ENSC exclude the avoided costs of transmission and distribution? 6 A: That is difficult to determine from the record in this case. On the one hand, 7 ENSC, perhaps quoting NSPI, dismisses the possibility that reducing or 8 el...

AI summary ENSC excludes avoided transmission and distribution (T&D) costs, citing their relative insignificance compared to energy and capacity costs. It argues DSM programs lack geographic targeting to impact specific high-load areas, making T&D upgrades unavoidable. However, ENSC acknowledges future inclusion of T&D costs, referencing a 2012 Dunsky Energy Consulting report on avoided T&D benefits in other jurisdictions.

6 Q: What is your recommendation regarding avoided costs? 7 A: I recommend that the Board direct NSPI to work with the parties to document 8 and improve the determination of avoided cost, leading to a filing with the 9 Board in 2013. At th...

AI summary The respondent recommends the NSUARB direct NSPI to collaborate with parties to improve avoided cost determination, with a 2013 filing. ENSC should assess if avoided cost changes necessitate mid-course program design adjustments while ensuring continuity.

- "Demand-Side Bidding: A Viable Least-Cost Resource Strategy" (with John Plunkett and Jonathan Wallach), in Proceedings from the NARUC Biennial Regulatory Information Conference , September 1990. - "Incorporating Environmental Externaliti...

AI summary The document lists academic publications addressing energy efficiency, utility planning, and environmental considerations. Key topics include demand-side management, least-cost planning, and environmental externalities. Authors like John Plunkett and Emily Caverhill contribute analyses on revenue losses, risk reduction, and regulatory review in utility decision-making.

REPORTS "State of Ohio Energy-Efficiency Technical-Reference Manual Including Predetermined Savings Values and Protocols for Determining Energy and Demand Savings" (with others). 2010. Burlington, Vt.: Vermont Energy Investment Corporation...

AI summary The text lists technical reports and studies on energy efficiency, demand-side management, and cost analysis from various U.S. states and organizations. These include evaluations of energy-saving protocols, procurement strategies, and avoided energy costs, though none directly reference Nova Scotia or the NSUARB.

PRESENTATIONS - "Adding Transmission into New York City: Needs, Benefits, and Obstacles." Presentation to FERC and the New York ISO on behalf of the City of New York. October 2004. - "Plugging Into a Municipal Light Plant," With Peter Enri...

AI summary The document lists presentations on energy-related topics including DSM, utility planning, cost recovery, and transmission infrastructure. Presentations were delivered by various individuals and organizations between 1993 and 2004, focusing on regulatory, economic, and environmental aspects of energy management.

ADVISORY ASSIGNMENTS TO REGULATORY COMMISSIONS District of Columbia Public Service Commission, Docket No. 834, Phase II; Least-cost planning procedures and goals; August 1987 to March 1988. Connecticut Department of Public Utility Control,...

AI summary Two regulatory proceedings from the District of Columbia and Connecticut address least-cost planning procedures and rate design with cost allocations, spanning 1987 to 1989. The District of Columbia case (Docket 834) focuses on planning goals, while Connecticut's (Docket 87-07-01) examines rate design and cost allocation methods.

odology, interest rates, surplus flow, tax flows, tax rates, and risk premium. 23. Illinois Commerce Commission 82-0026; Commonwealth Edison Rate Case; Illinois Attorney General; October 15 1982. Review of Cost-Benefit Analysis for nuclear...

AI summary The text lists regulatory proceedings from multiple U.S. states involving cost-benefit analyses, nuclear power plant evaluations, rate cases, and utility regulation. Key topics include nuclear capacity factors, discount rates, ratemaking proposals, and statistical modeling. Cases span Illinois, New Mexico, Connecticut, and Massachusetts, with critiques of utility company methodologies and proposals for alternative regulatory approaches.

Q. Have you reviewed the Company's evidence in this docket? - A. Yes. I have read the evidence filed by the Corporation, including the proposed 2013-15 - DSM plan, plan revisions, and attached reports. I have also reviewed information requ...

AI summary The reviewer has examined ENSC's evidence in the docket and concludes that the proposed DSM investment for 2013-2015 is lower than what was recommended by the IRP and witnesses. ENSC argues that increasing investment is limited by the capacity to deliver energy efficiency services rather than budget size, and that achieving higher savings would require more customer demand and service capacity.

2006. Study of Potential Mohave Alternative/Complementary Generation Resources , Pursuant to CPUC Decision 04-12-016, prepared for Southern California Edison, with Sargent and Lundy, November 2005. Potential Cost Impacts of a Renewable Por...

AI summary The text lists energy-related studies and reports commissioned by various organizations and government bodies, focusing on renewable portfolio standards, energy efficiency programs, and electricity resource management. Key entities include Southern California Edison, New Brunswick Department of Energy, and the Cape Light Compact, with topics spanning renewable energy, demand-side management, and low-income housing energy efficiency.

ARTICLES AND PRESENTATIONS Energy Efficiency Cost-Effectiveness Tests, presented at the Northeast Energy Efficiency Partnerships Annual Meeting, October, 12, 2011 Why Consumer Advocates Should Support Decoupling, presented at the 2011 ACEE...

AI summary The text lists presentations on energy efficiency, demand response, and regulatory strategies, including discussions on cost-effectiveness tests, decoupling, rate impacts, and utility motivation. Key organizations and conferences involved include NEEP, ACEEE, Efficiency Maine, and NARUC, with a focus on policy development and regulatory perspectives in energy management.

8 Q WHAT ARE THE MAIN POINTS AND RECOMMENDATIONS IN THIS EVIDENCE? A Impact: ENSC has proposed a three-year demand-side management (DSM) plan that9 would cost ratepayers $144 million. Before approving this, the Board should review the10 im...

AI summary ENSC has proposed a three-year demand-side management (DSM) plan costing ratepayers $144 million. The evidence highlights concerns about the decreasing cost-effectiveness of DSM programs and suggests that DSM and renewables are displacing lower-cost fossil generation, potentially increasing rates. The recommendation is for the Board to request full impact estimates on rates and limit multi-year approvals to the most cost-effective measures.

Reviewing the Goals 2 Why Review? 3 Q WHY SHOULD THE DSM PROGRAM BE REVIEWED? 4 A DSM is based on expectations and assumptions about the future. As conditions change, 5 the original assumptions should be reviewed. The 2006 Summit Blue repo...

AI summary The document discusses the need to review the DSM (Demand Side Management) program, citing changes in conditions such as lower fuel prices, reduced load, and decreased costs of energy-efficient equipment. It references past proceedings and highlights the importance of ensuring that DSM spending remains cost-effective and justifiable for ratepayers.

1 Avoided Cost Estimates

AI summary The section discusses avoided cost estimates, a critical component in evaluating the economic benefits of demand-side management and integrated resource planning. Key entities include Nova Scotia Utility and Review Board (NSUARB) and Nova Scotia Power Inc. (NSPI), with focus on Total Resource Cost (TRC) calculations.

3 Q WHAT ARE THE CONCERNS ABOUT THE AVOIDED COST ESTIMATES? - A NSPI's estimates are quite variable from case to case. Next, there is a major difference4 - between the 2012 avoided cost given in this DSM case and the numbers given in both5...

AI summary NSPI's avoided cost estimates show variability across cases, with discrepancies noted between the 2012 DSM case and previous Load Retention Rate and GRA cases. Concerns also arise from anomalies in this year's data.

2 Q HOW SHOULD AVOIDED COST CALCULATIONS BE MODIFIED TO REFLECT LOAD

AI summary The document addresses how avoided cost calculations should be adjusted to account for load factors in regulatory proceedings. It involves considerations related to demand-side management and total resource cost methodologies under Nova Scotia's utility regulation framework.

3 RETENTION RATE LOADS? A Avoided costs should be measured from the level of system load without the LR4 customers. The avoided cost estimate provided in this proceeding is based on an5 increment above the total load including the Bowater...

AI summary The text argues that avoided costs should be calculated based on system load excluding NPPH, leading to lower estimates. The application in the PWCC LRR proceeding proposes NPPH should pay real-time incremental generation costs, thus excluding their load from the total load used in avoided cost calculations.

15 Q WHAT IS YOUR RECOMMENDATION? A ENSC has stated that it does not analyze or verify the avoided cost estimates provided16 by NSPI (Response to Avon IR-8(a)). That leaves it to the Board and intervenors to do17 that analysis. In fact, ev...

AI summary ENSC does not analyze or verify NSPI's avoided cost estimates, leaving the Board and intervenors to perform this analysis. Ratepayers should have more insight into avoided cost numbers, and NSPI should provide detailed information on forecasts, assumptions, and variability.

7 Q WHAT DO YOU MEAN BY "UNECONOMIC" DSM MEASURES? A These are DSM measures that have TRC ratios below 1.0 or only slightly higher than 1.0.8 A TRC below 1.0 means that a measure is not itself cost-effective. A TRC only slightly9 above 1.0...

AI summary The term 'uneconomic' DSM measures refers to those with TRC ratios below or slightly above 1.0, indicating lack of cost-effectiveness. ENSC argues some measures are essential for program success, but the Board and ratepayers should be informed of their costs. TRC below 1.0 means measures are not cost-effective, while ratios up to 1.3 may not be if avoided costs are lower.

3 FOR THE PROPOSED DSM PROGRAMS? - A Lower avoided costs lead to a reduction the TRC benefit/cost ratios. Reducing the4 energy-related avoided costs for only the years 2012 to 2016 to the values utilized in the5 recent LRR proceeding reduc...

AI summary The analysis shows reducing energy-related avoided costs for NSPI's thermal units from 2012-2016 and 2012-2021 lowers the TRC benefit/cost ratios for DSM programs. Adjusting costs to LRR proceeding values reduces ratios from 1.6 to 1.4 (2013) and 1.7 to 1.5 (2014). Further adjustments using NSPI's thermal unit costs lower ratios to 1.2 (2013) and 1.3 (2014).

4 Q. What is COHA-NS? - A. The Canadian Oil Heat Association was established in 1983 by a group of fuel oil5 - dealers to work collectively on matters that affect the oilheat industry. Since then, COHA has6 - grown into a national body wit...

AI summary COHA-NS, established in 1983, represents Nova Scotia's home heating oil industry, advocating for policy, safety, and certification. It operates provincially with over 85 retailers, contributing to local employment and GDP. The sector supports communities through local ownership and charitable activities.

The additional cost of using these materials to construct condensing furnaces was significant. The benefits associated with gas-fired systems were also quite significant. A typical replacement condensing gas-fired furnace with an efficienc...

AI summary The text discusses the cost and efficiency trade-offs between condensing and non-condensing gas and oil furnaces. Condensing furnaces offer higher efficiency but face venting challenges due to corrosion risks. Oil-fired systems avoid some issues but have lower efficiency gains. Historical examples highlight design failures in gas venting systems leading to business closures.

Avoided Costs 7. The Parties acknowledge that review of the cost-effectiveness of ENSC programs will be facilitated by even greater transparency in the inputs and computations that support NSPI's avoided cost estimates. The Parties request...

AI summary The Parties request the UARB to direct NSPI to collaborate with ENSC and ratepayer representatives to enhance transparency in avoided cost estimates, with revised estimates due by June 1, 2013. ENSC will review these estimates and adjust programming as needed. If Integrated Resource Planning begins by January 1, 2013, separate ratepayer engagement on avoided costs isn't required.

r business, continue to develop their skills and capacity, and deliver better service to customers. No question, there is rising frustration over the rising cost of energy. People want to fight back. Efficiency Nova Scotia is your best way...

AI summary The text highlights Efficiency Nova Scotia's role in combating rising energy costs through energy efficiency initiatives. It emphasizes savings achieved, including $100 million in future electricity cost reductions and 141.8 million kWh saved. The program's success in engaging businesses, low-income residents, renters, and First Nations communities is noted, along with plans to expand a pilot project.

Good news for budget By JULIAN BELTRAME The Canadian Press OTTAWA — Finance Minister Jim Flaherty faces a less bumpy road in seeking to balance the budget in four years, according to economists who briefed the minister Monday in advance of...

AI summary Finance Minister Jim Flaherty faces a more manageable path to balancing the budget, with economists noting reduced global risks and increased optimism about the U.S. economy. Statistics Canada reports highlight financial challenges, including a fragile global economy, while a Local Program Improvement Fund is mentioned as a funding initiative. The public broadcaster is reviewing options to address financial pressures.

Avoided Costs 7. Parties acknowledge the cost-effectiveness of ENSC programs will be facilitated by even transparency in the inputs and computations that support NSPI's avoided cost estimates. Parties request that the DARB direct NSPI to e...

AI summary Parties agree on the need for transparency in NSPI's avoided cost estimates, requiring collaboration with ENSC and ratepayer representatives. NSPI must submit revised estimates by June 1, 2013, with ENSC reviewing and adjusting programs as needed. Integrated Resource Planning starting by January 1, 2013, would exempt further avoided cost engagement.

1 Request IR-28 - Reference: Exhibit E-7(C)(R) ENSC (Avon) IR-11a Confidential Attachment 1 ENSC-2 - EERAM, Tab "new AVCOS", Columns E and F.3 - Please provide the analysis and assumptions used to estimate the avoided energy cost and4 - av...

AI summary Request IR-28 seeks analysis and assumptions used to estimate avoided energy and capacity costs, referencing specific exhibits and tabs from ENSC documents. The proceeding involves Efficiency Nova Scotia Corporation (ENSC) and the Nova Scotia Utility and Review Board (NSUARB).

6 Request IR-29 - Reference: ENSC Ex E-7(C)(r) Avon-IR-11-a-EERAM Corrected April 11, 2012. When the7 - avoided cost in the EERAM model is set to 50% of the NSPI provided avoided cost (by8 - setting set cell D8 on tab "new AVCOS" to 50%) t...

AI summary The document raises questions about the EERAM model's behavior when avoided cost is set to 50% of NSPI's value, leading to zero C&I energy potential for specific years. It asks if this is expected and its implications.

17 Request IR-30 - Reference: Exhibit E-7(C)(R) Attachment 1, Tab "Avoided Cost"18 - Why are the avoided cost values zero (Columns C through O), except for the "Other "category19 - (columns Q and R)?20

AI summary Request IR-30 questions why avoided cost values in Columns C through O of Exhibit E-7(C)(R) Attachment 1 are zero, except for the 'Other' category in Columns Q and R. The inquiry focuses on the methodology and data underpinning these calculations within the Nova Scotia regulatory proceeding.

Avoided Costs 7. Parties acknowledge the cost-effectiveness of ENSC programs will be facilitated by even transparency in the inputs and computations that support NSPI's avoided cost estimates. Parties request that the DARB direct NSPI to e...

AI summary Parties agree on transparency in NSPI's avoided cost estimates, requiring collaboration with ENSC and ratepayer representatives. NSPI must submit revised estimates by June 1, 2013, with ENSC reviewing and adjusting programming as needed. If Integrated Resource Planning begins by January 1, 2013, no separate ratepayer engagement is required.

4 6.2 Evaluation of Enabling Strategies 5 The 2013-2014 DSM Plan Stakeholder Agreement identified the need to evaluate the appropriateness and value of Enabling Strategy expenditures. The Enabling Strategies evaluation will be carried out...

AI summary The 2013-2014 DSM Plan Stakeholder Agreement mandates evaluating Enabling Strategy expenditures. The evaluation, to occur in fall 2013, will assess expenditure appropriateness, compare strategies with other jurisdictions, and be conducted as part of ENSC's 2013 activities, filed with the UARB.

1 EVALUATION OBJECTIVES & METHODOLOGY

AI summary The section outlines the evaluation objectives and methodology for assessing energy efficiency programs and initiatives. It sets the framework for analyzing program effectiveness, cost recovery, and compliance with regulatory standards.