Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 1 of 8
Schedule 3-4: Conservation and Demand Management
In order to continue to promote and expand CDM to customers in
Bluewater Power’s distribution territory, we are seeking approval of $250,000.00
for CDM spending in 2006; of this amount, $90,000 is capital expense and
$160,000 is operating expense. Bluewater Power has established itself as the
energy conservation and energy management expert in Lambton County. In
2006, Bluewater Power will focus its CDM efforts primarily on energy efficient
lighting.
The commercial program provides rebates to commercial, industrial, and
institutional customers for installing energy efficient lighting systems. The
majority of program impacts are expected to come from customers replacing
standard efficiency fluorescent lighting systems (T12 lamps and magnetic
ballasts) with T8 lamps and electronic ballasts.
The residential program provides rebates to residential customers who
purchase compact fluorescent lamps (CFLs) and LED Christmas lights. The
program includes customer educational and promotional pieces designed to
educate customers about the benefits of CFLs and LED Christmas lights.
As required, below are the distribution system characteristics of Bluewater
Power as well as detailed descriptions of the 2006 initiatives including Total
Resource Cost test (TRCs) of both the residential and commercial programs.
Both the residential and commercial programs provide exceptional value
to the end use customers and system as a whole. This has been demonstrated
with the help of our consultants, Summit Blue, in the Benefit / Cost Ratio (BCR)
analyses. The residential program has a BCR of 7.83 and the commercial
program has a BCR of 4.4.
Bluewater Power Distribution System Characteristics
1.
Peak system load
Winter (2004):
Summer (2004):
181,354 kW
225,094 kW
Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 2 of 8
2.
Number of customer by rate class
2004 Data By Class
Cust. Num.'s
RESIDENTIAL CLASS
GENERAL SERVICE <50 KW CLASS
GENERAL SERVICE >50 KW NON TIME OF USE
GENERAL SERVICE >50 KW TIME OF USE
LARGE USER CLASS
SENTINEL LIGHTS
STREET LIGHTING
30,648
3,959
344
28
5
125
8
Totals
35,117
3.
Total energy purchased 2004:
1,149,895,557 kWh
4.
Average seasonal load shapes (NSLS) in kW.
2004 Winter Daily Average
11
pm
9p
m
7p
m
5p
m
3p
m
1p
m
11
am
9a
m
7a
m
5a
m
3a
m
1a
m
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 3 of 8
Bluewater Power CDM Program Details
Commercial / Industrial CDM Program
Program Concept
 Provides rebates to commercial, industrial, and institutional customers for
installing energy efficient lighting systems.
 The majority of program impacts are expected to come from customers
replacing standard efficiency fluorescent lighting systems (T12 lamps and
magnetic ballasts) with T8 lamps and electronic ballasts.
 Other eligible lighting retrofits include:
 Replacing standard fluorescent lighting systems with T5 lamps and
electronic ballasts.
 Replacing incandescent lamps with compact fluorescent lamps or
efficient HID systems.
 Replacing mercury vapor systems with metal halide or high pressure
sodium systems.
 Replacing incandescent exit signs with LED exit signs.
 The program includes customer educational and promotional pieces
designed to assist building owners and operators in making decisions to
improve the energy efficiency of their facilities.
 New construction applications are not eligible for this program.
Target Market
 All existing commercial, industrial, and institutional customers of Bluewater
Power.
Goals and Objectives
 Promote the installation of high-efficiency lighting systems.
 Assure that the participation process is clear, easy to understand and
simple.
 Involve contractors and trade allies in the promotion of the program.
 Increase the awareness and knowledge of the commercial, industrial, and
institutional building owners on the benefits of the efficiency measures
promoted by the program.
 Meet or exceed applicable regulatory requirements.
Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 4 of 8
Products and Services Provided
 Education and promotional efforts aimed at building owners and operators
about the benefits of energy efficiency improvements and improved systems
performance including educational brochures, program promotional material,
and website content.
 Incentives for building owners and managers to adopt the measures
recommended by the program. Incentives will be approximately $250/kW for
each measure provided by the program.
Delivery Strategy and Administration
 A designated Bluewater Power staff person will provide program
administration, marketing, vendor referrals, application and incentive
processing, coordination of education and training program, participation
tracking and reporting, quality control, and technical support.
Marketing and Communications
 Summit Blue to provide assistance as needed, especially with program
marketing materials such as brochures, application forms, as well as a simple
and easy to use program tracking database.
Evaluation, Measurement and Verification (EM&V)
 The overall strategy for EM&V will involve integrating the collection of
evaluation related data directly into the implementation process (integrated
data collection).
 Integrated data collection employs application processes designed to collect
necessary data to support evaluation, database tracking of participation and
evaluation related data, and tools such as customer mail back and follow-up
surveys designed to collect evaluation data at or near to the time of
participation.
Budget
 The total annual commercial and residential program budget for 2006 is
$250,000. The commercial program will account for 75% of all budget
categories specified below.
 The total program budget includes $100,000 for a utility program manager to
do program administration.
Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 5 of 8




Total program design and set-up costs will be approximately $25,000.
Total program EM&V costs will be about $25,000.
$100,000 for rebate costs.
$5,000 maximum rebate per customer so that a large lighting retrofit project
does not absorb the entire annual rebate budget.
Impact Summary and TRC Results
 Total connected program demand reductions are 300 kW.
 The estimated coincidence-loss factor is 90%, so the peak program impacts
are 270 kW.
 The estimated annual operating hours are 4,000, except for exit signs, which
operate 8,760 hours per year.
 The annual energy savings are 1,295,200 kWh per year.
 The total program TRC benefit-cost ratio is estimated to be 4.4.
Residential CDM Program
Program Concept
 Provides rebates to residential customers to purchase compact
fluorescent lamps (CFLs) and LED Christmas lights.
 The program includes customer educational and promotional pieces
designed to educate customers about the benefits of CFLs and LED
Christmas lights.
Target Market
 All existing residential customers of Bluewater Power.
Goals and Objectives
 Promote the installation of high-efficiency lighting systems.
 Assure that the participation process is clear, easy to understand and
simple.
 Involve contractors and trade allies in the promotion of the program.
 Increase the awareness and knowledge of residential customers on the
benefits of CFLs and LED Christmas lights.
 Meet or exceed applicable regulatory requirements.
Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 6 of 8
Products and Services Provided
 Education and promotional efforts aimed at residential customers about the
benefits of CFLs and LED Christmas lights, including educational brochures,
program promotional material, and website content.
 Rebates for residential customers to adopt CFLs and LED Christmas lights.
The average rebate per CFLs is $1 and per LED Christmas light string is $1.
Delivery Strategy and Administration
 A designated Bluewater Power staff person will provide program
administration, marketing, vendor referrals, application and incentive
processing, coordination of education and training program, participation
tracking and reporting, quality control, and technical support.
Marketing and Communications
 Summit Blue to provide assistance as needed, especially with program
marketing materials such as brochures, application forms, as well as a simple
and easy to use program tracking database.
Evaluation, Measurement and Verification
 The overall strategy for EM&V will involve integrating the collection of
evaluation related data directly into the implementation process.
 Integrated data collection employs application processes designed to collect
necessary data to support evaluation, database tracking of participation and
evaluation related data, and tools such as customer mail back and follow-up
surveys designed to collect evaluation data at or near to the time of
participation.
Budget
 The total annual commercial and residential program budget for 2006
$250,000. The budget for the residential program will account for 25% of all
budget categories specified below.
 The total program budget includes $100,000 for a utility program manager to
do program administration.
 Total program design and set-up costs will be approximately $25,000.
 Total program EM&V costs will be about $25,000.
 $100,000 for rebate costs.
Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 7 of 8
Impact Summary and TRC Results
 Total connected program demand reductions are 1,232 kW.
 The estimated coincidence-loss factor for CFLs is 18%, and 1% for LED
Christmas lights, so the peak program impacts are 192 kW.
 The estimated annual operating hours are 2,320 for CFLs and 155 for LED
Christmas lights.
 The annual energy savings are 2,482,000 kWh per year.
 The total program TRC benefit-cost ratio is estimated to be 7.83.
2004 Summer Daily Average
11
pm
9p
m
7p
m
5p
m
3p
m
1p
m
11
am
9a
m
7a
m
5a
m
3a
m
1a
m
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2004 Winter Weekly Average
Sa
tu
rd
ay
Fr
id
ay
Th
ur
sd
ay
da
y
W
ed
ne
s
Tu
es
da
y
on
da
y
M
Su
nd
a
y
72,000
71,000
70,000
69,000
68,000
67,000
66,000
65,000
64,000
63,000
62,000
Bluewater Power Distribution Corporation
2006 Rate Application
RP-2005-0020/EB-2005-0340
Schedule 3-4
Page 8 of 8
2004 Summer Weekly Average
5.
Sa
tu
rd
ay
Fr
id
ay
Th
ur
sd
ay
da
y
W
ed
ne
s
Tu
es
da
y
on
da
y
M
Su
nd
a
y
72,000
70,000
68,000
66,000
64,000
62,000
60,000
58,000
56,000
54,000
Sale by rate class
2004 Data By Class
RESIDENTIAL CLASS
GENERAL SERVICE <50 KW CLASS
GENERAL SERVICE >50 KW NON TIME OF
USE
GENERAL SERVICE >50 KW TIME OF USE
LARGE USER CLASS
SENTINEL LIGHTS
STREET LIGHTING
kW
kWhs
260,765,322
124,035,973
490,617 177,950,603
432,192 212,738,642
552,979 365,463,747
1,655
721,397
24,138
8,219,873