E-1EfficiencyOne Application - Revised Application see Exhibit E-43
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NOTICE OF APPLICATION TO: The Nova Scotia Utility and Review Board ("UARB" or "the Board") - 1. The Electricity Efficiency and Conservation Restructuring (201 4) Act, S.N.S. 2014, c. 5 effected a new regime for the delivery of electricity...
AI summary EfficiencyOne seeks a Board decision to finalize a three-year Supply Agreement with NSPI under the Public Utilities Act, following failed negotiations. The application references a prior franchise granted in 2014 under the Electricity Efficiency and Conservation Restructuring Act, and cites Board Order M06247. EfficiencyOne asserts the agreement serves the public interest.
Revisions to The Public Utilities Act , proposed through the Electricity Efficiency and Conservation Restructuring (2014) Act , were proclaimed on May 1, 2014. Highlights of the legislation affecting this DSM Resource Plan include the foll...
AI summary This text discusses legislative changes to the Public Utilities Act through the Electricity Efficiency and Conservation Restructuring (2014) Act, effective from May 1, 2014. Key changes include the requirement for NS Power to implement cost-effective energy efficiency and conservation activities, the establishment of an ENS franchise, and the UARB's role in approving contracts and setting performance requirements.
4.5.2 HST ENSC filed a ruling request with the Canada Revenue Agency (CRA) in October 2010 on the following two issues: 1) is the corporation making a taxable supply to NS Power and, as a result, whether the corporation is required to char...
AI summary ENSC requested CRA rulings on HST applicability for DSM programs and ITC eligibility, both denied in 2012. A 2015 CRA Appeals Division confirmation upheld the denial, but ENSTC may appeal to Canada's Tax Court. The 2014 Electricity Efficiency and Conservation Restructuring Act allows ENS to claim ITCs starting in 2015.
4.1 Education and Outreach The complexity of the electricity system means that many concepts and terms are not familiar or accessible to most Nova Scotians. The concept of energy efficiency is equally challenging to communicate effectively...
AI summary Education and outreach are critical for promoting energy efficiency in Nova Scotia, as complex concepts require clear communication to engage residents. Efficiency Nova Scotia (ENS) has increased public awareness, but challenges remain in communicating intangible benefits and adapting to new technologies. The Electricity Efficiency and Conservation Restructuring (2014) Act underscores energy efficiency's role in the electricity supply, emphasizing the need for ongoing outreach efforts.
1.3 Legislative Charge In the Public Utilities Act, the Nova Scotia General Assembly mandated that Nova Scotia Power Inc. (NSPI) "undertake cost-effective energy efficiency and conservation activities that are reasonably available in an ef...
AI summary The Nova Scotia General Assembly mandates Nova Scotia Power Inc. (NSPI) to undertake cost-effective energy efficiency and conservation activities under the Public Utilities Act, emphasizing their ability to reduce customer costs. The directive requires balancing benefits, costs, and rate class interests, with affordability being a key consideration for the Nova Scotia Utility and Review Board.
s, or by moving to the more straightforward PAC test. While both options involve tradeoffs, in the case of Nova Scotia, the preponderance of arguments point strongly toward focusing on the PAC test: - Simplicity: Applying the PAC will be a...
AI summary The analysis recommends adopting the Program Administrator Cost (PAC) test over the Total Resource Cost (TRC) method for evaluating Demand Side Management (DSM) programs in Nova Scotia. Key reasons include simplicity, accuracy concerns with TRC, relevance to ratepayer interests, and alignment with the 2014 Electricity Efficiency and Conservation Restructuring Act. The National Efficiency Screening Project (NESP) is also mentioned as a related initiative.
REGULATORY DRIVERS While the current effort at DSM in Nova Scotia is relatively new, the province's consideration of DSM dates back over fifteen years. Indeed, in the mid-1990s, in the context of an Integrated Resource Planning (IRP) proce...
AI summary Nova Scotia's DSM evolution spans 15+ years, with UARB using TRC thresholds (0.8 in 1990s, 1.0 in 2006) for DSM evaluation. The 2014 IRP prioritized cumulative revenue requirements over customer costs, while the 2014 Act linked energy efficiency to NSPI cost reduction via PAC. Synapse's analysis excluded customer costs in revenue assessments.
IMPLICATIONS FOR NOVA SCOTIA Nova Scotia has been using the TRC, which attempts to reflect the sum of participant and non-participant perspectives, to screen DSM programs. The Electricity Efficiency and Conservation Restructuring (2014) Ac...
AI summary Nova Scotia uses TRC to evaluate DSM programs, but the TRC may not reflect customer preferences, leading to inefficient spending. The 2014 Act structures DSM procurement as utility-led competition with supply. Only the PAC test considers utility least-cost perspectives. Customer preferences, like valuing solar hot water over heat pumps, could be overlooked by TRC.
ydro of 66% of projected load growth. At the time, this goal was deemed to be 25% higher than the highest achievable scenario when constrained by TRC cost-effectiveness, yet the regulatory framework – In Nova Scotia, this is not yet an imp...
AI summary The text argues that using the Total Resource Cost (TRC) test for screening Demand Side Management (DSM) in Nova Scotia is inconsistent with the policy of utility least-cost procurement. The 2014 Electricity Efficiency and Conservation Restructuring Act emphasizes cost-effective DSM procurement, focusing on utility costs (PAC) rather than TRC, which includes participant benefits. This approach aligns with Nova Scotia's legislative focus on least-cost procurement.
PRIMARY RECOMMENDATION Our review of the issues and options for Nova Scotia concludes with the need to change the current cost-effectiveness framework, to ensure internal consistency and best practices. In the absence of significant change...
AI summary The analysis recommends shifting from the Total Resource Cost (TRC) to the Program Administrator Cost (PAC) test for evaluating Demand Side Management (DSM) in Nova Scotia. This change is advocated for its simplicity, accuracy, relevance to ratepayer interests, and alignment with the 2014 Electricity Efficiency and Conservation Restructuring Act and Nova Scotia Power Inc.'s Integrated Resource Plan (IRP).
62745Board Decision
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aring the matter have also thoroughly reviewed all of the material in advance of coming to a decision as to whether to approve the Agreement as being in the public interest. - [17] Settlement agreements, while relatively new in regulatory...
AI summary The Board considers a settlement agreement in the public interest, emphasizing stakeholder support and resolving outstanding issues. It approves the Consensus Agreement, which includes provisions to revisit unresolved matters by June 30, 2016, ensuring alignment with future DSM plans. Settlements are viewed as regulatory successes when properly supported.
3.1 Evaluation Report of 2014 DSM Programs (Econoler) [28] As in the previous year, El engaged the services of Econoler Inc. ('Econoler") to conduct independent evaluations of the 2014 DSM programs. The Econoler team collaborated with two...
AI summary Econoler evaluated Nova Scotia's 2014 DSM programs under a rolling schedule from a 2012 Settlement Agreement, collaborating with Corporate Research and Equilibrium Engineering. The evaluation focused on validating ENSC's tracked savings and covered seven programs with 16 components, with reports filed in February 2015.
on (State and Local Energy Efficiency Action Network) Evaluation Protocol for behaviour-based programs, and is also strongly recommended in the Universal Methods Protocol for behaviour-based programs. [45] Similar to the Econoler recommend...
AI summary Dr. Peach's verification report addresses methodological flaws in OSM program evaluations, recommends using NSPI databases for comparisons, and suggests accepting vendor results with qualifications. Behavioral programs are classified as enabling strategies, not primary DSM tools. The report endorses improved evaluation practices and highlights the limited standalone value of behavioral-based programs.
3.3 Status of 2013 and 2014 Verification and Evaluation Recommendations [49] In Appendix C, attached to its application, El included Table 1 - Update on Implementation of 2013 Verification Recommendations, and Table 2 - Update on Implement...
AI summary Most 2013 and 2014 verification and evaluation recommendations are completed, with some ongoing. EfficiencyOne relies on 2015 evidence and will update in Q2. The Home Energy Report's savings were questioned, and Dr. Peach's evidence addressed this.
3.5 Proposed 2016-18 DSM Resource Plan
AI summary The section outlines the proposed 2016-18 Demand-Side Management (DSM) Resource Plan, focusing on energy efficiency initiatives under Nova Scotia regulatory frameworks. Key entities include Nova Scotia Power Inc. (NSPI) and legislation such as the Electricity Efficiency and Conservation Restructuring (2014) Act (EECR Act).
tal emissions caps; - renewable energy; and, - COMFIT. The province's leadership in these areas, however, has also resulted in Nova Scotia having some of the highest electricity rates in the country. Just a few years ago, when the province...
AI summary Nova Scotia's focus on emissions reduction, renewable energy, and the COMFIT program has led to high electricity rates. While affordability is now a top priority, past policies will increase costs for years. The COMFIT program adds costly renewable generation, and the Quantum Agreement parties support DSM spending levels.
3.5.3 Affordability - [76] Having determined the parameters of a preferred plan, the Board is specifically directed by the 2014 amendments to the PUA to address the issue of affordability. The most relevant sections are Section 79L(8) and...
AI summary The Board must assess affordability of electricity efficiency programs under PUA amendments (Sections 79L(8)-(9)), shifting from traditional lowest long-term cost criteria. Affordability has long been relevant in rate shock discussions and capital expenditure reviews, with Section 79L(9) explicitly requiring affordability evaluation. The Industrial Group emphasizes affordability in its post-hearing submission.
3.5.4 Relationship of the Proposed 201 6-18 DSM Plan to the 2014 Integrated Resource Plan [94] During a 10-month period in 2014, NSPI developed a new IRP in collaboration with Board Staff and consultants, and in consultation with intereste...
AI summary NSPI's 2014 Integrated Resource Plan (IRP) emphasized demand-side management (DSM) to achieve cost-effective energy savings. The proposed 2016-18 DSM Plan aligns with the IRP's 'mid-DSM' scenario, which projects higher savings (519 GWh over 3 years) compared to prior DSM plans (397 GWh). The IRP process aims to balance supply-side and demand-side resources for long-term ratepayer savings.
3.7 Mid-Course Adjustments and Flexibility [112] In the Consensus Agreement, the parties agreed to the setting of targets over a three year period, instead of annual targets. El had sought the ability to make changes of up to 25% in target...
AI summary The Consensus Agreement allows El to adjust program targets by up to 25% annually at the sector level, requiring explanations for changes exceeding this threshold. El must avoid substantial annual impacts on customer classes and provide written notice for mid-course adjustments. The Industrial Group opposes this flexibility, arguing that adjustments exceeding 25% impact on customer classes should be denied.
3.11 Compliance with Electricity Efficiency and Conservation Restructuring (2014) Act [122] Section 79J of the PUA contemplates that El and NSPI will enter into an agreement for electricity efficiency and conservation. That implies to the...
AI summary The Board notes the litigious nature of the proceeding between El and NSPI over the DSM budget, emphasizing the need for good faith negotiations. Despite significant costs, a Consensus Agreement was reached post-hearing. The Board criticizes the lack of early agreement on non-budget issues and highlights the budget dispute's negative impact on negotiations, funded by ratepayers.
4.0 LETTERS OF COMMENT AND PUBLIC SPEAKERS [129] The Board received 37 letters of comment from various persons, who wrote individually or on behalf of organizations. With only two exceptions, all were supportive of El and maintaining the a...
AI summary The Board received 37 letters supporting El's DSM plan, emphasizing environmental, economic, and low-income benefits. Most advocated maintaining or increasing efficiency spending. A critique of Dr. Peach's evidence was an exception. Public speakers, including industry stakeholders and students, emphasized DSM's benefits and risks of reduced programs.
aving considered the history of underspending on DSM programming, the history of overachieving savings and demand targets, and as an inducement to bring greater rigor to the calculation of incentives. [142] The Board considers that the tar...
AI summary The Board approves the El DSM Plan within approved spending, acknowledges affordability under PUA s.79L, but warns against short-term focus. It rejects the Quantum Agreement but approves aspects like DSM Expenditure Justification Criteria. The Consensus Agreement is approved with referrals to the DSM Advisory Group, and TRC remains for cost effectiveness.
4)2016-2018 PROGRAMS a) The DSM programs in 2016-2018 will be as proposed in EfficiencyOne's 2016-2018 DSM Resource Plan filing.
AI summary The 2016-2018 Demand-Side Management (DSM) programs will follow EfficiencyOne's proposed DSM Resource Plan. This outlines the initiatives for energy efficiency and conservation during this period, as part of Nova Scotia's regulatory proceedings under the Electricity Efficiency and Conservation Restructuring (2014) Act.
1) ESTABLISHMENT OF A STANDARDIZED FILING FOR FUTURE APPLICAT IONS To APPROVE A DSM SUPPLY AGREEMENT - a) The Parties agree to the establishment of a standardized filing for future applications, the substance of which will be vetted throug...
AI summary Parties agree to establish a standardized filing for future DSM supply agreements, including program descriptions, energy savings, cost-effectiveness analysis, and bill impact details. The template is based on Efficiency Maine's model, with input from the DSM Advisory Group. EfficiencyOne retains flexibility to add relevant information.
62745Board Decision
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2.0 BACKGROUND - [6] The Board considers it useful to set out some of the background of DSM in Nova Scotia to provide some context for this Decision. - [7] For a number of years prior to 2010, NSPI included requests for approval of spendin...
AI summary The document outlines the transition of DSM administration in Nova Scotia from NSPI to ENSC, established under the ENSC Act. The Board required approval for ENSC's programs and cost allocations, with oversight mandated by the EECR Act (2014), which amended the PUA and repealed the ENSC Act, reshaping DSM governance.
portfolio included seven programs which consisted of 16 components and initiatives. Econoler evaluated all 16 in addition to Codes and Standards. The series of reports were filed on February 27, 2015. [31] A revised version of the Home Ene...
AI summary Econoler evaluated Nova Scotia's 2014 DSM programs, achieving 151.9 GWh energy savings, exceeding the 137.8 GWh target by 10.2%. However, concerns were raised about the Home Energy Report's methodology, including data confidentiality issues and validation of adjustments. The evaluation included 71 recommendations, down from 122 in the 2013 report.
ment of evaluations and programs, and also endorses many of the evaluator's recommendations that would improve measurement and evaluation. Some of the specific recommendations that were noted include: - Establishing a Nova Scotia Technical...
AI summary The Verification Report of 2014 OSM Programs (Peach) endorses evaluator recommendations to improve measurement and evaluation, including establishing a Nova Scotia Technical Resource Manual (TRM), developing evaluation guidelines, implementing formal protocols, and partitioning energy savings. The TRM was previously recommended and noted for completion in 2015.
3.3 Status of 2013 and 2014 Verification and Evaluation Recommendations [49] In Appendix C, attached to its application, El included Table 1 - Update on Implementation of 2013 Verification Recommendations, and Table 2 - Update on Implement...
AI summary The document outlines the status of 2013 and 2014 verification and evaluation recommendations, noting most were completed, with some deferred. EfficiencyOne confirmed reliance on 2015 evidence, though evaluation reports raised concerns about Home Energy Report savings, and verification reports rejected those results. Dr. Peach's evidence addressed these issues.
3.5 Proposed 2016-18 DSM Resource Plan
AI summary The document outlines the proposed 2016-18 Demand Side Management (DSM) Resource Plan, focusing on energy efficiency initiatives under the Electricity Efficiency and Conservation Restructuring (2014) Act (EECR) and Nova Scotia Power Inc.'s (NSPI) compliance with regulatory frameworks.
3.5.3 Affordability - [76] Having determined the parameters of a preferred plan, the Board is specifically directed by the 2014 amendments to the PUA to address the issue of affordability. The most relevant sections are Section 79L(8) and...
AI summary The Board is directed by 2014 PUA amendments to assess affordability in DSM programs under Section 79L(9). Affordability, previously considered in rate shock discussions and Annual Capital Expenditure Plans, now requires explicit evaluation. The Industrial Group highlights affordability's importance in its posthearing submission, while the Board must determine if Section 79L(9) alters its assessment of DSM expenditures.
update in 2009. So I believe we filed a quote from the Terms of Reference for the 2009 IRP and it lists basically what we're trying to evaluate in doing the IRP. Bullet number three says: Develop and evaluate alternative plans in order to...
AI summary The 2016-18 DSM Plan aligns with the 2014 IRP's objective to achieve cost savings and emissions reductions. DSM's primary purpose is to support the IRP's goals, including saving customers money and reducing carbon emissions. Past programs like '08-'09 met their targets, demonstrating the effectiveness of DSM initiatives.
3.6 Performance Targets, Indicators, and Thresholds [108] El proposed that the performance targets be cumulative annual energy and peak demand savings at the end of the three year period at the portfolio level and the performance indicator...
AI summary El proposes cumulative energy and peak demand savings targets over three years, with annual reporting on incremental and lifetime savings. The threshold is 90% of targets, confirmed at 405.9 GWh and 62.5 MW. The Board reduced DSM expenditures, potentially impacting targets. El will also report on ratepayer benefits and customer satisfaction, though not as performance indicators.
4.0 LETTERS OF COMMENT AND PUBLIC SPEAKERS [129] The Board received 37 letters of comment from various persons, who wrote individually or on behalf of organizations. With only two exceptions, all were supportive of El and maintaining the a...
AI summary The Board received 37 letters of comment, mostly supporting El's DSM plan and advocating for increased efficiency spending. Environmental, economic, and low-income benefits were cited. At a public session, 21 speakers, including industry stakeholders and students, emphasized DSM's importance, warning of industry capacity loss if funding decreases. Most supported maintaining energy efficiency initiatives.
Consensus Agreement M06733 IN THE MATtER OF: THE PUBLIC UTILITIES ACT And IN THE MATtER OF: An application by EfficiencyOneforApprovat of a Supply Agreementfor Electricity Efficiency and Conservation Activities between EfficiencyOne and No...
AI summary EfficiencyOne and Nova Scotia Power Inc. (NSPI) reached a consensus agreement on the approval of a 2016-2018 Demand Side Management (DSM) Resource Plan and Supply Agreement under the Public Utilities Act. The agreement outlines terms for electricity efficiency and conservation activities, with parties reserving the right to amend positions based on further evidence. Key stakeholders, including intervenors and advocates, are acknowledged.
4) COST ALLOCATION - a) The Parties agree to collaboratively work to develop new OSM cost allocation and p5Mcost recovery models to be submitted by October 31) 2015 for approval or Decision by the Board, or within a reasonable period of ti...
AI summary Parties agree to develop OSM cost allocation and p5M cost recovery models by October 31, 2015, for Board approval. Key items include 2015 and 2016-2018 allocations, 2014 RSA, and mid-course adjustments. Nova Scotia Power retains discretion in DSM cost treatment.
63791Grant Thornton Report - Financing Demand Side Management
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ract with the province of Nova Scotia. The franchise was awarded for a 9 - year term from January 1, 2016 to December 31, 2024, with an initial one-year transition period - added to the term for 2015. - EfficiencyOne was granted the first...
AI summary EfficiencyOne was granted the exclusive Efficiency Nova Scotia franchise, transferring ENSC's assets and obligations (except HST claims) effective January 1, 2015. NSPI is mandated by regulation to implement cost-effective electricity efficiency programs. Legal frameworks include the Public Utilities Act and the Electricity Efficiency and Conservation Restructuring Act.
ivities that are reasonably available in an effort to reduce costs for its customers. Public Utilities Act, section 79A to 79V, and Electricity Efficiency and Conservation Restructuring (2014) Act.
AI summary Nova Scotia Power Inc. (NSPI) is implementing demand-side management (DSM) initiatives to reduce customer costs through available efficiency activities. The proceeding references the Public Utilities Act (sections 79A-79V) and the Electricity Efficiency and Conservation Restructuring (2014) Act as legal frameworks governing these efforts.
January 1, 2015 and onwards Revisions to the Public Utilities Act , proposed through the Electricity Efficiency and Conservation Restructuring (2014) Act , were proclaimed on May 1, 2014. Some of the highlights are as follows1: - ENSC ceas...
AI summary Revisions to the Public Utilities Act via the Electricity Efficiency and Conservation Restructuring (2014) Act led to ENSC's dissolution as Nova Scotia's DSM provider. The Efficiency Nova Scotia franchise was awarded to E1, a new not-for-profit corporation, effective January 1, 2015, with a 9-year term. E1 inherited ENSC's assets, except for unresolved HST liabilities, which remained with ENS Transition Corporation.