KMDR Research, Inc. "A Think Tank on Poverty and the Public Utility" KMDR Research, Inc. c/o Kevin Monte de Ramos 105-454 Rue de La Gauchetiére Ouest Montréal (Québec) H4Z 1A2 Telephone: (888) 563-7638 Fax: (514)879-9675 Email: KMONTE@kmdr.net November 4, 2004 Le Secrétaire Régie de l’énergie 800, place Victoria, bureau 255 Montréal (Québec) H4Z 1A2 Téléphone : (514) 873-2452 ou sans frais 1-888-873-2452 Télécopieur : (514) 873-2070 Courriel : greffe@regie-energie.qc.ca RE: Request Status as Intervener or Expert Witness Document (R-3552-2004) Québec Hydro's Budget Request for PGEÉ 2005-2010 Dear Secretary: KMDR Research is a consultancy focused on the development and assessment of utilitysponsored assistance programs and demand side management initiatives. Building on the research for my book, Poverty and the Public Utility: building shareholder value through low-income initiatives, KMDR Research has a fresh mandate to protect consumers, especially those of modest means, from rising energy burdens. To this end, we provide technical assistance and expert testimony to collaboratives developing, operating, monitoring, and evaluating energy efficiency. A review of the Plan Global d’Efficacité Énergétique (D-2003-110), the budget request for 2005-2010 (R-3552-2004), and our conversations with industry participants has encouraged our application for intervention. KMDR Research would like to introduce testimony and offer technical assistance to work groups addressing the following topics. Adverse effect on consumers of modest income. KMDR Research will introduce research that suggests a uniform rate increase to support the PGEÉ would adversely impact families struggling with utility service affordability. Opportunities to maximize net societal impacts. KMDR Research will highlight strategies that could be employed by Quebec Hydro to enhance program costeffectiveness, enhance the stream of societal benefits, and mitigate harm to economically disadvantaged families. Expand range of impacts under study. Currently, only a limited stream of benefits have been introduced into the total resource cost test. KMDR Research will introduce research suggesting the real benefits resulting from the planned energy efficiency investments are understated in the current filings. Energy savings may be overstated. Québec Hydro has selected a number of energy efficiency measures that rely on customer behavioral modifications to realize energy savings (e.g. programmable thermostats). KMDR Research believes the technical savings potential may overstate achieved savings and therefore must be calibrated with billing analysis. We will recommend evaluation planning be integrated within the working group. By addressing evaluation data requirements early in the process, the overall costs of program evaluation are substantially reduced and the ability to verify achieved savings remain possible. Energy efficiency treated as investments. KMDR Research will outline those conditions whereby energy efficiency measures may have market transformational effects that justify treatment as a utility infrastructure investments. Should the Régie de l’énergie grant our status as an intervener, we would require one week to prepare our testimony and just 45 minutes to read it into the record. NOTE: KMDR Research may require translation services and additional time for interrogatories submitted in French. We appreciate the consideration you have demonstrated. Sincerely, Kevin Monte de Ramos, President / Principal Researcher KMDR Research, Inc. Attached: Author Profile Book Flyer cc: Québec Hydro List of Interveners (as of November 4th)