Topic:"Heat Pumps" in M12282

......................................... 25 9.2 NSPM Guidelines ....................................................................................................................... 25 9.3 DSMAG Input ......................................

AI summary The document outlines a regulatory analysis comparing the current TRC test with a proposed BCA test, emphasizing non-utility system impacts like societal and host customer effects. It includes DSMAG input, NSPM guidelines, and test case runs on heat pumps, reflecting a shift toward broader impact assessments in energy efficiency programs.

56 Table 18: Residential Heat Pumps – Fuel Oil Example Other Fuel - Heating Oil Impact

AI summary The text presents a table titled 'Residential Heat Pumps – Fuel Oil Example' which outlines the impact of heating oil in the context of residential heat pumps. However, the content of the table is not provided in the text.

energyfuturesgroup.com 57 Table 19: Residential Heat Pump Fuel Oil Example - Electric System Cost Increase and Net Energy Impact 41 Utility System Impacts Net Impact Electric Increased Net (Fuel Oil Avoided Increased Electric Increased Ben...

AI summary The table presents a residential heat pump fuel oil example, showing the impact on electric system costs and net energy benefits. It includes metrics such as electric avoided costs, increased electricity system costs, peak kW, and net impact calculations.

7,878 $ 567,792 5,275 $ 173 $ 63 $ 925,066 $ 1,009,604 $ 8,561,403 $ 12,422,879 $ 21,458,023 The program administration and incentive costs for E1 to deliver services supporting 1,000 heat pump installations in 2026 are estimated in utilit...

AI summary The text discusses the estimated program administration and incentive costs for E1 delivering services supporting 1,000 heat pump installations in 2026. It notes that these costs, totaling $5.1 million, are included in addition to system energy and capacity costs. The greenhouse gas impacts of replacing 1,000 fuel oil heat pumps with electric ones are also referenced.

58 The greenhouse gas impacts of 1000 replacement heat pumps displacing fuel oil are presented in Table 20.

AI summary The document presents the greenhouse gas impacts of replacing 1000 fuel oil heating systems with heat pumps, as detailed in Table 20.

Table 20: Residential Heat Pumps - Fuel Oil Example - GHG Impact Annual Annual Annual Avoided Electric Increased Fuel Oil Consump Electric Carbon Net Social Annual Emissions tion Emissions Net SCCO2 Compliance Cost Minus Non- 2% Real Avoid...

AI summary The table presents the annual GHG impact of residential heat pumps replacing fuel oil, showing avoided fuel oil emissions, increased electric emissions, net emissions reduction, and associated costs from 2026 to 2033. It includes metrics like carbon price, compliance costs, and net social value.

et, which is negative due to the lower value of the pipeline gas savings. Table 23 illustrates the estimated greenhouse gas impacts from 1,000 residential heat pumps displacing pipeline gas.

AI summary The text discusses the negative impact of lower pipeline gas savings and provides an illustration of estimated greenhouse gas impacts from 1,000 residential heat pumps displacing pipeline gas.

Table 21: Residential Heat Pumps - Pipeline Gas Example Other Fuel - Pipeline Gas Impact Escalated Annual Carbon Carbon price Fuel Price Avoided 2% Real Price price per including minus carbon Natural Discount Value of Saved Escalation Plan...

AI summary The table presents the impact of carbon pricing on residential heat pumps using pipeline gas as an alternative fuel. It includes escalated carbon prices, fuel prices, avoided natural gas costs, and the value of saved natural gas over multiple years.

Table 23: Residential Heat Pumps – Pipeline Gas Example – GHG Impacts Annual Annual Annual Avoided Electric Increased Nat Gas Consump Electric Carbon Net Social Annual Emissions tion Emissions Net SCCO2 Carbon Compliance Cost Minus Non- 2%...

AI summary The table presents the GHG impacts of residential heat pumps compared to pipeline gas, showing annual avoided natural gas consumption, electric consumption, and net emissions reductions from 2026 to 2034, along with associated carbon compliance costs and social discount values.

1 For conversion of electric resistance heating to heat pumps (energy efficiency): Proposed BCA (societal perspective) PAC (utility and its customers perspective) Benefits = NPV of avoided electric generation and Benefits: NPV of avoided e...

AI summary The document compares the societal benefits of converting electric resistance heating to heat pumps (avoided generation and transmission costs, health benefits, GHG reductions) with the costs (installation and program administration) from the utility and customer perspective. This analysis is part of a regulatory proceeding in Nova Scotia.

Conclusion 17 18 19 20 21 22 23 24 25 26 16 Eastward provides the following points to summarize its position on this matter: - Participation in DSMAG - Eastward's involvement in the DSMAG would pose no further conflict of interest than wha...

AI summary Eastward argues its DSMAG participation poses no greater conflict of interest than NSPI's. It highlights expertise in hybrid heating, natural gas systems, and GHG reduction via hydrogen/RNG blending. The GDA and More Access to Energy Act support hybrid heating for demand management. Eastward aligns with NSPI's IRP analysis and E1's 2027–2031 DSM Plan goals.

ctric heat pumps and dual-fuel heat pumps will be essential to mitigate peak load impacts." 3 (emphasis added) - 4 Other jurisdictions also recognize the importance of hybrid heating:

AI summary The text highlights the necessity of hybrid heating systems, such as electric and dual-fuel heat pumps, in reducing peak load impacts. It notes that other jurisdictions also recognize their importance for managing energy demand.

11 For conversion of electric resistance heating to heat pumps (energy efficiency): Proposed BCA (societal perspective) TRC including Non-Energy Benefits (utility and its customers + participant perspective) PAC (utility and its customers...

AI summary The document compares cost-benefit analyses (BCA, TRC, PAC) for converting electric resistance heating to heat pumps. Benefits include avoided generation/capacity costs, transmission/distribution savings, health impacts, and GHG reductions. Costs involve installation, program administration, and taxes. Perspectives vary between societal, utility/customer, and host customer viewpoints.

efficiency programs and in opposition to a proposed rate case settlement agreement to eliminate such programs. (2021) - Sierra Club (Maryland). Provided strategic support on testimony on cost-effectiveness and other rules governing expansi...

AI summary Energy Futures Group, Inc. is involved in energy efficiency programs, opposing rate case settlements that would eliminate such programs. Entities include Sierra Club, New Jersey Board of Public Utilities, and others, with activities spanning strategic support for gas infrastructure rules, regulatory filings, and analysis of efficiency programs' cost-effectiveness and integration into capacity markets.

Selected Publications and Reports - National Standard Practice Manual for Benefit Cost Analysis of Distributed Energy Resources , Second Edition, to be published December 2025 (with Tim Woolf and others) - New Jersey's Electric Grid Has He...

AI summary The document lists publications and reports on energy efficiency, distributed energy resources (DERs), and clean heat standards (CHS). Key topics include benefit-cost analysis of DERs, building decarbonization, residential electrification, and heat pump adoption. Reports are authored by individuals and organizations such as the Natural Resources Defense Council, Environmental Defense Fund, and Vermont Energy Action Network.

t Electricity System Operator (Sep. 2017-Oct. 2017) - Solar Thermal Market Scan: Independent Electricity System Operator (Nov. 2017-Dec. 2017) - Analysis of Fenestration Products in Support of Canadian Market Transformation Activities: NRC...

AI summary The document lists energy efficiency studies conducted between 2010 and 2018 by organizations like IESO, NRCan, CEATI, FortisBC, Enbridge Gas Inc., and Union Gas. These studies cover technologies such as solar thermal, HVAC systems, gas heat pumps, and conservation strategies.

Posterity Group - Posterity Group Consulting Inc. ("Posterity") "recommends that E1 specifically recognize the benefits of - hybrid heating to reduce peak load impacts as part of the 2027-2031 DSM Plan,"[34](#page-18-4) and prepared two -...

AI summary Posterity Group Consulting Inc. recommends that E1 recognize hybrid heating's benefits in reducing peak load impacts for the 2027-2031 DSM Plan, supported by BCA examples. They cite evidence from M12282.

E1 Response - E1 acknowledges the value of hybrid heating. Such measures can accurately be evaluated under the - proposed BCA framework. The inclusion of specific hybrid heating measures may be considered in the - 2027-2031 DSM Plan, but p...

AI summary E1 acknowledges the value of hybrid heating measures, which can be evaluated under the proposed BCA framework. Specific hybrid heating measures may be included in the 2027-2031 DSM Plan, though program design decisions remain pending.

Energy Efficiency Tests Per Illustrative Example of 1,000 Heat Pump Replacements - as compared to Electric Resistance Heating

AI summary The document presents an illustrative example comparing energy efficiency outcomes of replacing 1,000 electric resistance heating systems with heat pumps. It uses a figure to highlight potential benefits of heat pumps over traditional electric resistance heating in a regulatory proceeding context.

Electrification Tests Per Illustrative Example of 1,000 Heat Pump Replacements - as compared to Oil Heating

AI summary The document presents an illustrative analysis comparing the impacts of replacing 1,000 oil heating systems with heat pumps, focusing on electrification outcomes. It includes a figure (Figure 1) to visualize the comparison, though specific quantitative results or policy implications are not detailed in the provided text.

3.6 Eastward Energy [61] In its submissions, Eastward Energy asked the Board to make a preliminary and final order that Eastward be added as a full member of DSMAG. On November 4, 2025, the Board noted that Eastward has a valuable perspect...

AI summary Eastward Energy requested DSMAG membership, which the NSUARB approved. They supported strategic electrification testing methods aligning with Posterity Group's recommendations and advocated for hybrid heating in E1's 2027-2031 DSM Plan, emphasizing economic benefits and regulatory alignment with the PUA.

2 Reference: Appendix B, Page 54 "Both examples assume an approximate 3 representative annual space heating consumption of 80 million BTUs 4 (MMBtu), and an assumed existing system efficiency of 84%, and an 5 average heat pump COP of 2.5."...

AI summary The text raises questions about the assumed efficiency of 84% for a furnace, asking whether it refers to existing or new furnace efficiency and whether this value is appropriate for natural gas furnaces.

Request IR-37: - Table 6: Illustrative Example Present Value Benefits, Costs and Ratios, provides the present - value of the heat pump replacements. Not limited to this table, how many years will the costs and - the benefits be discounted...

AI summary Request IR-37 asks about the discount period for present value calculations in Table 6, which illustrates benefits, costs, and ratios for heat pump replacements. The request seeks clarification on the number of years used to discount costs and benefits, and the specific years associated with each impact.

ard. [44](#page-23-2) Mr. Bowman himself acknowledged that the PAC test results - at the program and measure levels are provided to the Board as part of a DSM Plan application review. [45](#page-23-3) - Eastward Energy has expressed its co...

AI summary Eastward Energy raised concerns about hybrid heating measures in the 2027-2031 DSM Plan and seeks DSMAG involvement. EfficiencyOne (E1) confirmed consideration of hybrid heating measures and willingness to engage with Eastward Energy. E1 also emphasized stakeholder engagement through an evergreen process.

Modified PAC test for Electrification The PAC need not be rigid or "ruthlessly applied".[73](#page-19-0) It can be applied or modified as needed, like a jurisdictional test. As suggested by Mr. Bowman, this can be done with respect to stra...

AI summary The document discusses modifying the PAC test for electrification, proposing inclusion of increased revenues from electrification to better assess system costs. Mr. Bowman's approach aligns with Posterity Group's hybrid heating recommendations, reducing utility costs and passing PAC tests. This aligns with the PUA and E1's mandate to lower electricity costs for NSPI customers.

y – Opening Statement, page 1. 11 Transcript page 45, lines 5-9. 12 Exhibit E-1, Application of EfficiencyOne, Appendix A. 13 Transcript page 55, line 6 to page 56, line 16. 14 Transcript page 57, line 4 to page 58, line 8. with an expecte...

AI summary Eastward requests early DSMAG membership to contribute to E1's 2027-2031 plan development, emphasizing that delayed input could miss a six-year window for cost-effective hybrid heating DSM opportunities. Eastward urges the Board to make an early decision to ensure timely collaboration.

And Mr. Bowman concluded: "So the PAC is signalling even more savings than the TRC, and I think in some cases it may signal even more savings than the BCA. But it will also help achieve more investment, for example, in the again, something...

AI summary Mr. Bowman highlights PAC's potential for greater savings and investment compared to TRC and BCA. Ms. Thompson acknowledges hybrid heating's value under E1's BCA framework. Eastward criticizes E1 for insufficient emphasis on hybrid heating's benefits, urging the Board to mandate its inclusion in future plans. Commissioner Murphy questions E1's Rebuttal on hybrid heating timelines.

CONCLUSION In conclusion Eastward respectfully requests that the Board: - 1. make a preliminary and final order that Eastward be added as a full member of the DSMAG in accordance with the Board's general supervision of E1 pursuant to secti...

AI summary Eastward requests the Board to add it as a DSMAG member, prioritize hybrid heating in E1's DSM plan, use marginal emissions in modelling, guide benefit-cost thresholds, assess natural gas reliability impacts, confirm ancillary costs from Nova Scotia Power, adjust electrification values, balance legislative requirements in BCA tests, and consider EFG's sustainable development emphasis.

HYBRID HEATING With respect to the significant issue of hybrid heating, E1 simply states that, "At the hearing, Ms. Thompson confirmed hybrid heating measures are currently being considered by E1 for the 2027- 2031 DSM Plan".[6](#page-3-2)...

AI summary The document discusses E1's consideration of hybrid heating in its 2027-2031 DSM Plan, with Eastward and the Industrial Group advocating for stronger focus on hybrid heating due to cost-effectiveness and policy alignment. E1's approach is criticized for prioritizing greenhouse gas reductions over electricity cost reductions and omitting key policy guidance from the Gas Distribution Act.

3.6 Eastward Energy [61] In its submissions, Eastward Energy asked the Board to make a preliminary and final order that Eastward be added as a full member of DSMAG. On November 4, 2025, the Board noted that Eastward has a valuable perspect...

AI summary Eastward Energy requested DSMAG membership, which the Board approved. They supported strategic electrification testing via PAC with NS Power revenue inclusion, aligned with Posterity Group's advice. Eastward emphasized hybrid heating's economic benefits and urged E1 to prioritize it in the 2027-2031 DSM Plan, citing the Public Utilities Act's cost-reduction mandate.

4.3 Strategic Electrification [158] Strategic electrification that reduces overall GHG emissions and electricity costs is included in the definition of "demand-side management" in s. 79A(b)(iv) of the Public Utilities Act . The PAC test, a...

AI summary The text discusses the challenges of applying the traditional PAC test to strategic electrification programs under the Public Utilities Act. It highlights Mr. Bowman's proposal to modify the PAC test by including increased revenues from electrification as a benefit, ensuring cost-effective programs. The Industrial Group supports this approach, emphasizing alignment with the PUA's mandate to reduce electricity costs for NSPI customers through hybrid heating and other measures.

[160] Eastward made similar comments in its submissions: In this regard the IG has noted that the approach proposed by Mr. Bowman to costeffectiveness testing for E1 for strategic electrification – running the PAC test with the additional...

AI summary Eastward argues that modifying the PAC test to include NSPI's revenue aligns with Posterity Group's recommendations, emphasizing cost-effective hybrid heating programs. E1 counters that this approach assesses rate impacts, not cost-effectiveness, and criticizes E1's BCA focus on GHG reductions over electricity cost savings.