Conservation and Demand Management Code For Electricity Distributors

Conservation and Demand Management Code For Electricity Distributors October 15, 2010

Agenda • • • CDM Directive CDM Code CDM Strategy Board-Approved Programs Annual Reports Next Steps 2

CDM Directive • Directive requires CDM targets to be specified as a condition of licence without a hearing • Distributors may meet their targets through Board -Approved CDM programs, OPA-Contracted Province-Wide CDM programs, or a combination of both 3

CDM Directive • The Directive also sets out the total of the CDM Targets that the Board must allocate to the respective distributors: – 1, 330 megawatts (MW) of provincial peak demand persisting at the end of the four year period – 6, 000 gigawatt hours (GWh) of reduced electricity consumption accumulated over the four year period 4

CDM Code • Final CDM Code issued on September 16, 2010 • CDM Code sets out the obligations and requirements that licensed distributors must comply with in relation to meeting their CDM Targets 5

CDM Code Content • General and Administrative Provisions • Code Requirements • CDM Strategy • OPA-Contracted Province-Wide programs, Board. Approved programs, or a combination of both • Offered to all customer types • Annual Reports • Cost-effectiveness and EM&V protocol process • Performance incentive for verified savings 6

CDM Strategy • Distributors to file a CDM Strategy – High level description of a distributor’s 4 year plan to achieve its mandatory targets – Strategy will be reviewed for compliance with the CDM Code – An acknowledgement letter will be issued by the Board confirming that the CDM Strategy is complete – CDM Strategy to be posted on the distributors’ and OEB websites 7

Board-Approved Programs • Applications for Board-Approved programs – Review for compliance with CDM Code (e. g. costeffectiveness and OPA duplication) – CDM Code states that any matter under this Code requiring an approval, consent, or determination of the Board may be determined by the Board without a hearing or through an oral or written hearing, at the Board’s discretion 8

Annual Report • Distributors to submit an Annual Report – Overview of activities undertaken during the calendar year (OPA-Contracted Province-Wide programs and Board-Approved programs if applicable) – Summary of progress made towards CDM targets – Description of any changes or planned modifications to the CDM Strategy or an explanation of any variances between projected results and actual verified results 9

Next Steps • OEB to finalize CDM Targets – Directive required the Board to have regard to information obtained from the OPA regarding the CDM targets – OEB issued proposed CDM Targets on June 22, 2010 – OEB has reviewed comments and will finalize CDM Targets shortly – Distributors to file CDM Strategy by November 1, 2010 based upon the proposed CDM Targets 10

Contact Information For more information, contact: Market Operations Hotline market. operations@oeb. gov. on. ca www. oeb. gov. on. ca 11

Questions? 12