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1116-207 WEST HASTINGS STREET, VANCOUVER, BC, CANADA V6B 1H7
MATTHEW J. JACKSON Barrister & Solicitor
DIRECT LINE: 604-842-5221
EMAIL: MJACKSON@JACKSONLITIGATION.CA
February 18, 2020
Sent via efile on the BCUC Website
British Columbia Utilities Commission
Suite 410, 900 Howe Street
Vancouver, BC V6Z 2N3
ATTENTION: Mr. Patrick Wruck, Commission Secretary
Dear Sir:
Re: FortisBC Energy Inc. Revelstoke Propane Portfolio Cost Amalgamation
Application – BCUC Project No. 1599033
Filing of Evidence of Cornelius Suchy on behalf of Intervenor Canadian
Biomass Energy Research Ltd. (CBER)
In accordance with Order G-13-20 made on January 21, 2020 in this proceeding, I enclose the
evidence statement of Mr. Cornelius Suchy, submitted on behalf of Intervenor CBER, and
respectfully request that statement be filed as an exhibit in the proceedings.
If further information is required, please contact the undersigned.
Yours truly,
Matthew J. Jackson
Barrister & Solicitor
Legal Counsel for CBER
Enclosures
C1-4
1
Evidence of Cornelius Suchy
submitted on behalf of
Intervenor Canadian Biomass Energy Research Ltd.
regarding
FortisBC Energy Inc. Revelstoke Propane Portfolio Cost
Amalgamation Application – Project No. 1599033
1. I, Cornelius Suchy, CEO and operating mind of Canadian Biomass Energy Research ltd., affirm that I have prepared the evidence that follows objectively and to the best of my abilities, and that to my current knowledge the facts presented are true and accurate.
2. I am a physicist and energy engineer with 25 years of work experience in the field of sustainable energy. I have worked as a consulting engineer throughout BC and Canada. My clients include First Nations, universities, the BC Ministry of Energy, Natural Resources Canada, the National Research Council, the Canadian Council of the Ministers of Environment, and the International Renewable Energy Agency. Attached as Appendix D is my resumé.
3. I have lived in Revelstoke since 2002. As a long-time resident I am knowledgeable of the city, its current affairs and local politics, the local economy and business operations, energy systems and means of energy end use, and other local matters.
4. The following evidence is organized in three sections. Section A addresses economic considerations that would likely arise in the event of the Commission’s approval of a lower propane price for Revelstoke propane customers, by way of amalgamation with the natural gas price through a cross-subsidy by Fortis BC Energy Inc. (FEI) natural gas rate payers, as proposed by FEI in this proceeding. Section B addresses the likely impact of the proposed amalgamation of Revelstoke propane prices on GHG emissions for the City, in large part due to the economic considerations. Section C addresses the likely socio-economic impact of the proposed propane rate amalgamation, in particular the persons or societal groups in Revelstoke who would be the likely beneficiaries of the lower propane rate, as well as the potential to alternatives use the proposed subsidy for a renewable wood to gas facility.
SECTION A: ECONOMIC CONSIDERATIONS
5. In the past 10 years (2009 to 2019), heating a household with propane was on average less
expensive than heating with electric baseboards but more expensive than heating with wood
(i.e., pellets, cordwood, district heating from RCEC). If propane rates were lower by
approximately 50% as proposed in FEI’s application, then it will become less expensive to use FEI
propane than wood pellets and district heat, in some cases less expensive than cordwood, as
shown in Figure 1 and Table 1 below.
2
Figure 1: Residential heat cost in Revelstoke
Table 1: Comparison of effective heat cost per GJ of heat
1 Total annual cost including basic charge
2 BC Hydro residential Step 1 (min) and Step 2 (max) rate + basic charge at 10,000 kWh/year, see BC Hydro, "Residential Rates", accessed
on Feb 1, 2020 at
https://app.bchydro.com/accounts-billing/rates-energy-use/electricity-rates/residential-rates.html 3 Minimum and maximum total cost per GJ in the period 2009 to 2019 based on Exhibit B-1, Figure 2-2, FORTIS BC ENERGY INC,
REVELSTOKE PROPANE PORTFOLIO COST AMALGAMATION APPLICATION, downloaded on Dec 20, 2019 at
https://www.bcuc.com/Documents/Proceedings/2019/DOC_55159_B-1-FEI-Revelstoke-PropanePortolioCostAmal-App.pdf
4 Rough estimate: Free pick-up at cutblocks around Revelstoke, automotive and chain saw fuel cost only
5 Common price for delivered cordwood in Revelstoke
6 Estimated price based on revenue statements in financial year-end; price for residential user likely higher than for commercial users
7Prices of local vendors; no PST on pellets
8 Minimum and maximum price of fuel oil in the period 2009 to 2010 in Vancouver; source: Natural Resources Canada,
"Monthly average retail prices for gasoline and fuel oil, by geography", accessed on Feb 02, 2020 at
http://www2.nrcan.gc.ca/eneene/sources/pripri/prices_bycity_e.cfm?productID=6&locationID=6&locationID=2&frequency=
W&priceYear=2019&Redisplay= 9 Minimum and maximum price of auto propane, excluding motor fuel tax, in the period 2009 to 2010 in Kelowna; source:
Natural Resources Canada, "Monthly average retail prices for gasoline and fuel oil, by geography", accessed on Feb 02, 2020
at
0 10 20 30 40 50 60 70 80
Electric heat pump
Subsidized propane (Fortis BC)
Cordwood
RCEC district heat
Pellets
Propane (Fortis BC)
Electric baseboard or furnace
Heating oil
Distributed propane
Cost to household, in $ per GJ of heat
Household heat energy cost in Revelstoke
Energy source / Price, incl. taxes & levies Calorific value Appliance efficiency Cost per GJ of heat
appliance type Min Max Unit (Higher Heating Value) Min Max Min Max Average Current
Pmin Pmax HHV hmin hmax
Cmin =
Pmin /HHV/hmax
Cmax =
Pmax /HHV/hmin
1 Electric heat pump $0.111,2
$0.161,2
per kWh 0.0036 GJ/kWh 208%15
350% $8.5 $20.9 $14.7 $14.7
2 Subsidized propane (Fortis BC) $12.11,3
$17.91,3
per GJ 1 GJ/GJ 75% 95%16
$12.7 $23.8 $18.3 $15.4
3 Cordwood $504
$2505
per cord 14.1 GJ/cord10
63%17
84%17
$4.2 $28.1 $16.2 $16.2
4 RCEC district heat $16.06
$18.26
per GJ 1 GJ/GJ 95% 100% $16.0 $19.1 $17.6 $17.6
5 Pellets $2897
$3687
per tonne 17.6 GJ/tonne11
70%18
83%18
$19.8 $29.8 $24.8 $24.8
6 Propane (Fortis BC) $17.01,4
$29.01,4
per GJ 1 GJ/GJ 75% 95% $17.9 $38.6 $28.3 $26.0
7 Electric baseboard or furnace $0.111,2
$0.161,2
per kWh 0.0036 GJ/kWh 95% 100% $29.8 $45.8 $37.8 $37.8
8 Heating oil $0.868
$1.558
per litre 0.0388 GJ/litre12
70% 85% $26.1 $57.0 $41.5 $43.6
9 Distributed propane $0.599
$1.329
per litre 0.0256 GJ/liter13
75% 95%16
$24.3 $68.7 $46.5 $46.5
..
..
3
http://www2.nrcan.gc.ca/eneene/sources/pripri/prices_bycity_e.cfm?productID=6&locationID=6&locationID=2&frequency=
W&priceYear=2019&Redisplay= 10 Air dried wood at 30% moisture content (wet basis) 11 European Class A1 pellets (EN 14961-2), as produced by most Canadian pellet manufacturers (moisture content < 10% wet
basis, ash content < 0.7%) 12 Government of Canada, Justice Laws Website, Schedule 3, "Default Higher Heating Values", Table 2 Liquid Fuels, Light fuel oil;
accessed on Feb 15, 2020 at https://laws-lois.justice.gc.ca/eng/regulations/SOR-2016-151/page-27.html 13 BC Ministry of Finance, "Tax Information Sheet - Conversion Factors for Fuel", downloaded on Feb 15, 2020 at
https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/conversion-factors-by-fuel.pdf 14 Minimum efficiency of an oil furnace manufactured after July 3, 2019, NRCan, "Energy Efficiency Regulations", accessed on
Feb 15, 2929 at https://www.nrcan.gc.ca/energy-efficiency/energy-efficiency-regulations/guide-canadas-energy-efficiency-
regulations/oil-fired-furnaces/6887 15 Minimum Heat Seasonal Performance Factor of 7.1 BTU/Wh for an air-source heat pump manufactured after Jan 1, 2017,
NRCan, "Energy Efficiency Regulations", accessed on Feb 15, 2020 at https://www.nrcan.gc.ca/energy-efficiency/energy-
efficiency-regulations/guide-canadas-energy-efficiency/split-system-central-air-conditioners-and-heat-pumps/6895 16 95% minimum efficiency of a gas furnace manufactured after July 3, 2019, NRCan, "Energy Efficiency Regulations", accessed
on Feb 15, 2020 at https://www.nrcan.gc.ca/energy-efficiency/energy-efficiency-regulations/guide-canadas-energy-
efficiency/gas-furnaces/6879 17 US Environmental Protection Agency (EPA), "Frequent Questions about Wood-Burning Appliances", accessed on Feb 15, 2020
at https://www.epa.gov/burnwise/frequent-questions-about-wood-burning-appliances 18 EPA approved pellet stove, US Energy Department, "Wood and Pellet Heating, Pellet Fuel Appliances", accessed on Feb 15,
2020 at https://www.energy.gov/energysaver/heat-and-cool/home-heating-systems/wood-and-pellet-heating
6. Revelstoke is located in climate zone 4 while the majority of Fortis BC’s natural gas clients are
located in the Lower Mainland which is climate zone 2.1
7. According to long-term weather normals there are 2,775 heating degree days in Vancouver and
4,611 heating degree-days in Revelstoke, i.e. 66% more than in Vancouver.2 A building located in
Revelstoke should therefore consume 66% more heating energy than the same building in
Vancouver. If the average dwelling in the area serviced by natural gas by Fortis consumes 90 GJ
per year, the same building would use 150 GJ per year in Revelstoke.
8. 44% of occupied private dwellings in the Province of BC were built prior to 1991. In Revelstoke
70% of occupied private dwellings were built prior to 1991. The building and insulation standard
of the majority of private dwellings can be expected to be lower in Revelstoke than in the rest of
the province.10 Regardless of climatic impacts the average dwelling in Revelstoke should use
more heat energy than the average in the rest of the province.
9. A typical residential natural gas customer in the FEI Mainland and Vancouver Island service area
uses on average 90 GJ and a typical residential propane customer in Revelstoke uses on average
50 GJ, i.e. 56% less. 3 Because the climate is harsher in Revelstoke than in FEI Mainland and
1 BC Building Code 2018, “Appendix C- Climatic and Seismic Information for Building Design in British Columbia”,
downloaded on Feb 2, 2020 at
http://free.bcpublications.ca/civix/document/id/public/bcbc2018/bcbc_2018dbac. 2 Heating Degree days for Vancouver and for Revelstoke, Canadian Climate Atlas, “1981-2010 Climate Normals &
Averages”, 3 Exhibit B-1, Footnote 4, FORTIS BC ENERGY INC, REVELSTOKE PROPANE PORTFOLIO COST AMALGAMATION
APPLICATION, downloaded on Dec 20, 2019 at
4
Vancouver Island, and because the building stock in Revelstoke is older than in those areas,
insulation standards and energy efficiency cannot explain this difference.
10. According to the BC government‘s Community Energy and Emission Inventory, more than 37%
of heating fuel was provided by wood, with additional 9% by electricity.4 Many households have
two types of heating, a primary and a secondary source, such as electric baseboards with a
wood stove as a secondary source, or a propane furnace with electric baseboards in selected
rooms, or a propane furnace with a wood stove in only one room of the dwelling. These
households have the ability to partly switch between the two sources of heat and do so,
especially during fall and spring when the need for heat is temporary.
11. Consequently, if the propane price were to drop to lower than competing energy sources such
as wood or electricity, as would occur if FEI’s proposed amalgamated propane rate is approved,
then as rational consumers households equipped with two sources of heating will use the lower
cost propane heating source instead of low carbon electricity or wood as much as possible in
order to reduce household costs. Accordingly, demand for and consumption of FEI propane is
likely to increase for existing FEI residential propane customers with a propane and an
alternative heat source.
12. With respect to the lower amalgamated cost of propane inducing residents with oil heating to
convert to FEI propane, heating oil is already significantly more expensive than propane, see
Figure 1. Rational consumers using heating oil would have switched already to lower cost
propane to save money, unless installation costs are too high or the propane network too far
away.
13. A further reduction in price of propane is unlikely to induce many heating oil dwellings to
convert to propane, since it is already rational for consumers to make that choice based on fuel
costs alone, see Table 2 below. To the extent that there are heating oil customers who could be
induced to fuel switch to save money, the amalgamated propane rate would make it more likely
for heating oil customers to switch to propane rather than to a low-GHG emitting wood stove,
whereas at current rates wood stoves are cost competitive with propane. Propane would also
become more cost-competitive with low-GHG emitting heat pumps, increasing the likelihood of
heating oil users to switch to a propane furnace rather than a heat pump.
https://www.bcuc.com/Documents/Proceedings/2019/DOC_55159_B-1-FEI-Revelstoke-
PropanePortolioCostAmal-App.pdf 4 Data of the Community Energy and Emission Inventory of 2012 to 2016, see Government of BC, “Provincial
Greenhouse Gas Emissions Inventory”, downloaded on Jan 30, 2020 at
https://www2.gov.bc.ca/assets/gov/environment/climate-change/data/provincial-
inventory/2017/utilities_energy_data_2007-2017.xlsx
5
Table 2: Conversion cost of end-of-life oil furnace to competing fuels and appliances
Oil furnace
Propane
furnace
Propane
furnace
Air-source
heat pump
Wood pellet
stove
Unit
Re-
placement
furnace
Current
propane
pricing
Subsidized
propane
Equipment cost $4,250 1 $4,400 2 $4,400 2 $4,995 5 $4,737 7
Installation cost $1,000 $1,000 $1,000 $1,000 $650 7
Oil tank removal $0 $1,475 3 $1,475 3 $1,475 3 $1,475 3
Other conversion costs $0 $1,150 4 $1,150 4 $5,500 6
Total cost per unit $5,250 $8,025 2 $8,025 2 $12,970 $6,862
Capital subsidy 0% 0% 0% 0% 0%
$0 $0 $0 $0 $0
Total cost to owner/user $5,250 $8,025 $8,025 $12,970 $6,862
Annuity to owner/user $/yr. $974 8 $1,489 8 $1,489 8 $2,407 8 $1,273 8
Heat use GJ/yr. 103 9 103 9 103 9 103 9 103 9
Appliance efficiency % 78% 10 95% 11 95% 11 279% 12 77% 13
Heat cost per GJ $/GJ $42 $28 $18 $15 $25
Annual heating bill $/yr. $5,483 $3,063 $1,978 $543 $3,338
Total annual cost $/yr. $6,457 $4,552 $3,467 $2,950 $4,611
1
Canadian Furnace Pricing Guide, accessed on Feb 14, 2020 at https://www.furnaceprices.ca/furnaces/furnace-prices/
2 FurnacePrices.ca, "Propane Furnace Prices Installation Cost, Benefits, and Conversions"; accessed on Feb 14, 2020 at
https://www.furnaceprices.ca/furnaces/propane-furnace-pricing/
3 Tri-City Tank Tech, "How much does a standard tank removal cost?", accessed on Feb 14, 2020 at https://oiltank.ca/faq-items/how-
much-does-a-standard-tank-removal-cost/
4 Cost for a power vent kit and a metal chimney, see Energyshop, "The Costs of Converting to Natural Gas", accessed on Feb 154,
2020 at http://www.energyshop.com/es/info/equipcos.cfm
5 Homestars, "Guide to Heating % Cooling Costs & Estimates in Canada", accessed on Feb 14, 2020 at https://homestars.com/cost-
guides/heating-cooling-cost/
6 Philip Jang, Times Colonist, "How our household is saving $2,400 a year on heating costs (with asterisk)", accessed on Feb 14, 2020
at https://www.timescolonist.com/opinion/how-our-household-is-saving-2-400-a-year-on-heating-costs-with-asterisk-1.2179939
7 Wood Pellet Association of Canada, "Annual Home Heating Cost - Revelstoke, BC, accessed on March 14, 2020 at
https://www.woodpelletheat.ca/case-studies/#1504802547366-2cdfb3b4-1772
8 Assuming 7% interest 7 years depreciation
6
9 Based on data of the Community Energy and Emission Inventory for Revelstoke, accessed on Feb 18, 2020 at
https://www2.gov.bc.ca/assets/gov/environment/climate-change/data/provincial-inventory/2017/utilities_energy_data_2007-
2017.xlsx
10 78% minimum efficiency of an oil furnace manufactured after July 3, 2019, NRCan, "Energy Efficiency Regulations", accessed on
Feb 15, 2020 at https://www.nrcan.gc.ca/energy-efficiency/energy-efficiency-regulations/guide-canadas-energy-efficiency-
regulations/oil-fired-furnaces/6887
11 95% minimum efficiency of a gas furnace manufactured after July 3, 2019, NRCan, "Energy Efficiency Regulations", accessed on
Feb 15, 2020 at https://www.nrcan.gc.ca/energy-efficiency/energy-efficiency-regulations/guide-canadas-energy-efficiency/gas-
furnaces/6879
12 Average of assumed maximum energy efficiency of 350% and required minimum efficiency of 208% for an air-source heat pump
manufactured after Jan 1, 2017, NRCan, "Energy Efficiency Regulations", accessed on Feb 15, 2020 at
https://www.nrcan.gc.ca/energy-efficiency/energy-efficiency-regulations/guide-canadas-energy-efficiency/split-system-central-
air-conditioners-and-heat-pumps/6895
13 EPA approved pellet stove, US Energy Department, "Wood and Pellet Heating, Pellet Fuel Appliances", accessed on Feb 15, 2020
at https://www.energy.gov/energysaver/heat-and-cool/home-heating-systems/wood-and-pellet-heating
SECTION B: ENVIRONMENTAL IMPACTS
14. With the exemption of heating oil, GHG emissions from heating with propane are higher than
from any other heating energy used in Revelstoke, see the graph below.
Figure 2: GHG emission factors of various fuels and appliances
0 10 20 30 40 50 60 70 80 90 100
Electric heat pump
RCEC district heat
Electric baseboard or furnace
Pellets
Cordwood
Propane
Heating oil
GHG emission, in kg of CO2-eq per GJ of end-use heat
I t I
7
Table 3: GHG emission factors of various fuels and appliances
Emission
factor
Appliance
efficiency Effective emissions, per GJ of heat
Energy source /
appliance type kg/GJ Min Max Min Max Average Percentage
FGHG hmin hmax
Emin =
FGHG / hmax
Emax =
FGHG / hmin
of propane
Electric heat pump 3.0 208% 350% 0.9 1.4 1.1 2%
RCEC district heat 2.24 70% 80% 2.8 3.2 3.0 4%
Electric baseboard or furnace 3.0 95% 100% 3.0 3.2 3.1 4%
Pellets 19.07 70% 83% 23.0 27.2 25.1 34%
Cordwood 19.07 63% 84% 22.7 30.3 26.5 36%
Propane (Fortis BC) 61.15 75% 95% 64.4 81.5 73.0 100%
Distributed propane 61.15 75% 95% 64.4 81.5 73.0 100%
Heating oil 68.37 70% 85% 80.4 97.7 89.1 122% Source data from BC Ministry of Energy.5
15. According to the BC Government‘s Provincial Greenhouse Gas Inventory – Community Energy
and Emission Inventory, 79% of Revelstoke buildings use heat energy sources other than piped
propane, see the Figure 3 and Table 4 below.6
5 BC Ministry of the Environment and Climate Change Strategy, “2017 B.C. Best Practices Methodology for
Quantifying Greenhouse Gas Emissions”, Feb 2018, downloaded on Feb 02, 2019 at
https://www2.gov.bc.ca/assets/gov/environment/climate-change/cng/methodology/2017-pso-
methodology.pdf 6 Data of the Community Energy and Emission Inventory of 2012 to 2016, see Government of BC, “Provincial
Greenhouse Gas Emissions Inventory”, downloaded on Jan 30, 2020 at
https://www2.gov.bc.ca/assets/gov/environment/climate-change/data/provincial-
inventory/2017/utilities_energy_data_2007-2017.xlsx
8
Figure 3: Energy use for residential heating purposes in Revelstoke, in GJ per year
Table 4: Residential energy use for heating in Revelstoke
Secondary energy use
Average 2012 to 2017 GJ per year
Electricity 170,153
Electricity for heating 28,215 8% 1
Piped propane 70,179 21%
Estimated oil 63,819 19%
Estimate bottled propane 47,113 14%
Estimate wood 124,712 37%
Estimate district heat 600 0.2% 2
TOTAL 334,638 100%
Total per dwelling 103 3
1 Assumption that every household uses 900 kWh/month for non-heating electricity, see
https://www.bchydro.com/search.html?site=bchydro-com&client=bchydro-com&proxystylesheet=bchydro-
com&output=xml_no_dtd&q=average+apartment+bill 2
One bed and breakfast at 200 GJ/year and one apartment building with 8 units each 50 GJ/year 3
3,250 occupied dwellings according to Census 2016 data
16. Because 8% of Revelstoke’s heat energy comes from low GHG-emitting hydropower and 37%
comes from low GHG-emitting wood, GHG emissions will go up by 46% if all of Revelstoke heat
energy were provided by propane, see Table 5 below. Likewise, if the current share of non-
propane heated buildings were to convert to propane, then GHG emissions will go up, on
average by 46%.
Electricity,
28,215 - 9%
Piped propane,
70,179 - 21%
Heating oil*,
63,819 -19%
Bottled
propane*,
47,113 - 14%
Wood*,
124,712 - 37%
District
heating**, 600
- 0.2%
* Estimate of CEEI
** Own estimate
9
Table 5: GHG emissions from various heating sources in Revelstoke
Emission factor Usage
Total GHG GHG-emissions if all propane
Energy source / emissions Total Change
appliance type kg/GJ GJ/year t of CO2-eq /yr. t of CO2-eq /yr. t of CO2-eq /yr.
FGHG U GHG = FGHG x U
Electric heat pump 3.0 2,000 1 6 122 +116 +1938%
RCEC district heat 2.2 600 2 1 37 +35 +2630%
Electric baseboard or furnace 3.0 26,215 3 79 1,603 +1,524 +1938%
Pellets 19.1 62,356 4 1,189 3,813 +2,624 +221%
Cordwood 19.1 62,356 4 1,189 3,813 +2,624 +221%
Propane (Fortis BC) 61.2 70,179 5 4,291 4,291 +0 0%
Distributed propane 61.2 47,113 5 2,881 2,881 +0 0%
Heating oil 68.4 63,819 5 4,363 3,903 -461 -11%
TOTAL 334,638 14,000 20,463 +6,463 +46%
1Assuming 20 residential dwellings using a heat pump, annual heat use of 100 GJ/year each
2One bed and breakfast at 200 GJ/year and one apartment building with 8 units each 50 GJ/year
3 CEEI data for 2012 to 2016 & assumption that every household uses 900 kWh/month for non-heating electricity, see
https://www.bchydro.com/search.html?site=bchydro-com&client=bchydro-com&proxystylesheet=bchydro-
com&output=xml_no_dtd&q=average+apartment+bill 4
CEEI estimate & assumption that 50% of household energy using wood as a fuel is supplied by pellets,50% by cordwood 5
CEEI data for 2012 to 2016
17. Fortis BC expects an increase in propane use in Revelstoke, see Figure 4 below.7 As detailed in
Section B below, increases in propane use will most likely come from clients already connected
to the propane distribution system, in particular dwellings that use both a propane and a
electric or wood heating source that would be incentivized at the amalgamated rates to use
propane more often rather than more expensive electric or wood fuels, and due to connections
to new or remodelled buildings, also incentivized to do so by the lower amalgamated propane
rates. Increased use of propane in Revelstoke will lead to increased GHG-emissions.
7 Exhibit B-1, Figure 4-2, FORTIS BC ENERGY INC, REVELSTOKE PROPANE PORTFOLIO COST AMALGAMATION
APPLICATION, downloaded on Dec 20, 2019 at
https://www.bcuc.com/Documents/Proceedings/2019/DOC_55159_B-1-FEI-Revelstoke-
PropanePortolioCostAmal-App.pdf
10
Figure 4: Propane demand in Revelstoke as forecasted by Fortis BC 7
18. Fortis BC’s planned increase in propane sales does not accord with provincial fossil fuel use
targets laid down in the Clean BC Plan, see the Figure 5 below.8
Figure 5: Fossil fuel use development as planned by the Province of BC
8 Province of BC, “Clean BC – Our nature. Our power. Our future”, Dec 2018, graph on page 11, downloaded on
Feb 3, 2020 at
https://blog.gov.bc.ca/app/uploads/sites/436/2019/02/CleanBC_Full_Report_Updated_Mar2019.pdf
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11
SECTION C: SOCIO-ECONOMIC IMPACTS
19. According to the Canadian Rental Housing Index, of the 3,250 total households there are a total
of 875 renter households, and 2,380 owner households, see Appendix A. The median income of
Revelstoke household income is higher than the median income for British Columbian
households ($50,178 vs. $45,979). In addition, renter households in Revelstoke pay less on
average on rent and utilities than households for British Columbia as a whole ($1,014 vs.
$1,148), and spend less as a proportion of their income (20% vs. 23%).9 These statistics indicate
that the affordability of rent and of utility costs (including heating costs) is not on average worse
than for other communities in British Columbia. Issues of affordability of rent and utilities,
including heating costs, are therefore likely an issue for low income households rather than
middle and upper income households, as addressed in the paragraphs that follow.
20. According to Statistics Canada Census 2016, there are 3,250 occupied private dwellings, of
which 395 (12%) dwellings are apartments in a building that has fewer than five stories.10
According to the Revelstoke Community Poverty Reduction Strategy – Final Report June 2012,
17% of Revelstoke households receive income assistance and additional 19% live below the
living wage threshold.11,12 The report estimated the number of food bank users at 269, with
most of those persons living in private rental housing (approximately 67%).13 In 2011, the
average rent for a 1 bedroom rental apartment in 2011 was estimated at $669, with smaller low
end apartments as low as $500 per month, whereas large apartments and houses rented for
over $1,000, with prices reflecting an average of approximately $1 per square foot.14
21. According to the Canadian Rental Housing Index, the lowest quartile of income-earning renters
in Revelstoke earn on average $15,620 per year, with 70% of those renters living in one
bedroom housing units.15 Lowest quartile income-earning renters in Revelstoke pay on average
$636 per month for rent, heat, hot water and electricity (combined) for a one bedroom unit,
which is lower than in Burnaby ($892), Kamloops ($715), Surrey ($713), and Victoria ($909)
where lowest quartile income-earners have the same or lower average earnings than in
9 Canadian Rental Housing Index, “A Snapshot of Renter Households in British Columbia & Revelstoke”, accessed
on February 08. 2020 at http://rentalhousingindex.ca/en/#comp_csd (Printout provided in Appendix A) 10 Statistics Canada’s 2016 Census data, Revelstoke census subdivision, accessed on Jan 24, 2020 at
https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/index.cfm?Lang=E 11 Revelstoke Community Poverty Reduction Strategy – Final Report, June 2012, accessed on Jan 24, 2020 at
https://www.revelstokesocialdevelopment.org/assets/files/Rev%20Poverty%20Strategy(2).pdf 12 See also: Columbia Basin Rural Development Institute with the City of Revelstoke Social Development
Coordinator, “A Statistical Snapshot on the State of Poverty in Revelstoke, BC”, Feb 2018, downloaded on Feb
2, 2020 at https://www.revelstokesocialdevelopment.org/wp-content/uploads/2018/03/Snapshot-on-State-of-
Poverty-in-Revelstoke-FINAL.pdf 13 Revelstoke Community Poverty Reduction Strategy – Final Report, June 2012, pp. 52-53 14 Ibid., p. 10 15 Canadian Rental Housing Index, “Number of Renter Households in Burnaby, Kamloops, Revelstoke, and
Victoria”. Data Retrieved on February 07, 2020 from http://rentalhousingindex.ca/en/#renter_csd (Printout
provided in Appendix B)
12
Revelstoke.16 Renters with higher earnings live in larger apartments or houses; for example, top
quartile renters who earn on average $123,052, pay on average $1,214 per month for rent plus
heat, hot water and electricity. Renters in Revelstoke on average earn more income and pay less
for rent plus utilities including heat, hot water and electricity than renters in Burnaby, Kamloops,
Surrey or Victoria.17
22. The above statistics indicate that most low-income residents in Revelstoke live in low-cost rental
apartments, likely in low-cost apartment buildings.
23. Few apartment buildings in Revelstoke are serviced by FEI propane.18
24. BC Hydro promoted electric heating after the Revelstoke dam was built, partly by offering low
cost electric heat though its discounted Residential E-plus rate. While the rate is being phased
out,19 many residential dwellings are still on electric heating. Converting dwellings from electric
baseboard heating to forced air or hydronic heating, the type of heating provided by propane
furnace or boiler, is difficult and expensive, for example because of the cost to install ducting.
Renters or owners of these dwellings of all income levels will not benefit from lower propane
rates.
25. Residents who have higher average incomes and live in larger dwellings, which generally have
greater heating energy needs due to high square footage, and that are currently supplied by
propane by FEI, are the residents who will benefit most from subsidized propane prices. Lower
income residents living in small apartments without propane heating will not benefit at all.
Lower income residents who live in apartments or other small dwellings that do have propane
heating will benefit to a lesser extent than higher income residents in larger dwellings due to the
lower amount of energy required to heat smaller dwellings.
26. The FEI amalgamated propane rate proposes a cross-subsidy of approximately $1.8 million per
year, paid for by FEI natural gas rate payers in other parts of BC to FEI propane customers in
Revelstoke. The primary recipients of the subsidy would be commercial customers, with small
commercial customers at $601,649 (33%), large commercial customers at $494,927 (28%) and
residential users at $713,064 (39%).
16 Canadian Rental Housing Index, “Cost of Rent Plus Utilities Including Heat, Hot Water and Electricity for
Burnaby, Kamloops, Revelstoke, Surrey and Victoria”. Data Retrieved on February 07, 2020 from
http://rentalhousingindex.ca/en/#cost_csd (Printout provided in Appendix C) 17 Ibid. 18 Visible by the absence of smoke stacks or gas meters at apartment buildings. 19 BC Hydro, “E-Plus rate updates - Residential E-Plus rate customers”, accessed on Jan 25, 2020 at
https://www.bchydro.com/toolbar/about/planning_regulatory/2015-rate-design/eplus.html
13
Figure 6: Subsidy recipients in Revelstoke
Table 6: Subsidy levels for individual user groups
Average
annual usage
per client Average annual bill
impact
2020
forecast
for annual
use
Total subsidy Percentage
of subsidy
Rate Schedule GJ/yr. $/yr. $/GJ GJ/yr.
RS-1R Residential 50 1 -$407 1 -$8.14 87,600 2 $713,064 39%
RS-2R Small Commercial 300 1 -$2,116 1 -$7.05 85,300 2 $601,649 33%
RS-3R Large Commercial 6,650 1 -$48,259 1 -$7.26 68,200 2 $494,927 27%
Thereof Downie Timber >$300,000 4 17%
Thereof other large commercial user <$194,927 11%
TOTAL 241,100 3 $1,809,640 100%
1FEI application, Table 5-1, page 20
2FEI rate application, Appendix A, Line 1 MCRA Demand
3FEI application, Table 3-3
4 Evidence of Downie Timber, Jan 13, 2020, Exhibit C4-2, downloaded on Feb 15, 2020 at
https://www.bcuc.com/Documents/Proceedings/2020/DOC_56806_C4-2-Downie-Timber-IntervenerEvidence.pdf.
Residential users,
$713,064 -39%
Small commercial
users, $601,649 -
33% Downie Timber,
>$300,000 - 17%
Other large
commercial user,
<$194,927 - 11%
Large commercial
users, $494,927 -
28%
Total of $1.8 million per year
14
27. According to the statistics provided above, it is likely that only a small number of low income
residents would benefit from the subsidized amalgamated rate; most of the approximately
$713,000 of the residential portion of the subsidy (see Figure 6 and Table 6 above) would likely
be paid to middle and high income residential FEI propane customers. Revelstoke residents of all
incomes who heat their homes with other sources of energy will receive no part of the subsidy.
28. The 61% of the total subsidy (approximately $1.1 million) that would be paid to commercial
users would not reduce the heating costs of any Revelstoke residents.
29. An alternative use of an annual $1.8 million subsidy that would create positive economic
impacts for Revelstoke would be to invest that money in a wood to renewable gas facility.
30. B.C.’s climate goals require substantial decarbonization of all sectors of society. The province’s
Clean BC plan calls for 15% renewable gas by 2030.20 Due to B.C.’s northern climate and its small
arable land area, 21 agricultural products and by-products have limited potential for bioenergy
production, especially in Revelstoke. Woody biomass is the most abundant feedstock available
and will be the main resource of the bioeconomy in the future. With its well-established forestry
and wood processing sector, Revelstoke is a good location to become a leader in next
generation lignocellulosic biofuels, i.e. fuels made from wood. This includes possibilities to
convert wood waste to a gas that could replace propane.22
31. Revelstoke has access to more than 76,000 bone-dry tonnes (bdt) of wood waste/biomass
available. The cost of these range from $0 (waste) to $100 per bdt. 22 Downie Timber is the
largest exporter of low-carbon biomass. It has large amounts of wood waste/biomass that could
be used in a renewable gas facility. It is also the largest user of propane in Revelstoke.
32. A wood to renewable gas plant consuming 1,000 to 2,000 bdt a year would cost around $10 to
$20 million whereas a 40,000 bdt-plant would likely require around $80 million in initial capital
investment. 22 By comparison, FEI suggested a liquefied natural gas (LNG) plant in 2016 for
Revelstoke at capital cost of $25 million.23
Date Submitted: February 18, 2020 ______________________________
Signature of Cornelius Suchy
20 BC Gov News, “CleanBC plan to reduce climate pollution, build a low-carbon economy”, Dec 5, 2018, accessed on Feb 16, 2020 at https://news.gov.bc.ca/releases/2018PREM0088-002338
21 Only 4% of BC is arable land, see Provincial Agricultural Land Commission, Agricultural Capability & the ALR Fact Sheet, table 2, downloaded on Dec 20, 2019 at https://www.alc.gov.bc.ca/assets/alc/assets/library/agricultural-
capability/agriculture_capability__the_alr_fact_sheet_2013.pdf
22 Thomas Cheney, “Biofuel Production from Western Hemlock Pulpwood - Technology Scan prepared for the Revelstoke Community Forest Corporation”, June 28, 2017
23 Joe English, Fortis BC, “Revelstoke NG Conversion Presentation to BCSEA”, Mar 1, 2016, slide 11
15
Appendices
Appendix A: A Snapshot of Renter Households in British Columbia & Revelstoke
Appendix B: Comparison of household income in selected communities of BC
Appendix C: Comparison of rental cost in selected communities of BC
Appendix D: Resumé of Cornelius Suchy
Resume - Cornelius Suchy Feb 2020 Page 1 of 4
APPENDIX D
Resumé of Cornelius Suchy
RENEWABLE ENERGY PROFESSIONAL
CAREER SUMMARY
Cornelius Suchy is a renewable energy professional with 25 years of work experience in the field.
He started his career working at the prestigious Fraunhofer Institute for Solar Energy, Europe’s largest
research facility for renewable energy.
Organizations he has worked for include various cities and aboriginal communities, provincial and national
governments, the Asian Development Bank, the European Commission, the European Parliament, the
Global Environmental Fund, the International Renewable Energy Association (IRENA), the United Nations,
and the World Bank.
As a consultant he has conducted feasibility studies, technical-financial analyses, and market studies. He
has undertaken environmental impact studies, developed energy scenarios and models and given policy
advice to local, provincial and national governments, including NRCAN and INAC in Ottawa.
As an engineer he has performed schematic and detailed designs. In a role as an owner’s engineer he has
written technical specifications and has overseen the selection and procurement of renewable energy
equipment and services. As a general contractor he has supervised and assessed installation and
rehabilitation works on district and biomass energy systems.
His expertise stems from engagement in numerous projects, some in the study, some in the design, others
in the implementation phase in Bhutan, Germany, Nepal, Uzbekistan, Kazakhstan, the Kyrgyz Republic,
the Ukraine, Tajikistan and for the past 17 years, in Canada.
He has worked on numerous biomass energy projects, including in Canada’s North. His practical know-
how comes from real life projects rather than text books.
Cornelius is well familiar with the opportunities – and challenges that biomass energy technologies pose.
Countries, such as Austria, Germany and Switzerland have recognized these challenges and have
implemented a quality assurance scheme (“QM Holzheizwerke”) that allows eliminating key mistakes
already in the planning stage. Cornelius is the only certified Quality Manager in Canada. He has given
various training courses and written parts of Nipissing University’s curriculum for Bioenergy 101.
Cornelius combines his work with his responsibilities as coach for Judo in Revelstoke. In the past he sat
two years on of the Environmental Advisory Board of the City of Revelstoke and three years on the Board
of Director of the British Columbia Sustainable Energy Association.
Resume - Cornelius Suchy Feb 2020 Page 2 of 4
EDUCATION
Fachhochschule Nordwestschweiz, Switzerland - Energy Engineer 1993-1994
Fraunhofer Institute for Solar Energy Systems (ISE), Germany - Master Thesis 1990-1992
Universität Freiburg, Germany – Diplom (M.Sc. equivalent), Physics, Mathematics 1989-1992
Brock University, Canada – B.Sc. Physics 1988-1989
Universität Freiburg, Germany – Bachelareus, Physics 1984-1988
CURRENT DESIGNATION:
PRESENT POSITION: CEO CANADIAN BIOMASS ENERGY RESEARCH (CBER) LTD.
YEARS OF PROFESSIONAL EXPERIENCE: 25 YEARS
KEY QUALIFICATIONS:
Renewable Energy Technology (RET) District Heating & HVAC
Biomass energy technologies
Solar Photovoltaic (PV)
District heating
Solar thermal technologies
Wind power development
Grid Integration of RET
Master planning and design of district heating
Energy efficiency upgrades to HVAC systems
HVAC design, incl. energy management
Integration of renewables into HVAC systems
Conversion of buildings to hydronic heating
Monitoring of HVAC performance
Engineering & Design Consulting
Preliminary to detailed designs
CAPEX & OPEX cost estimates
Technology assessments
Development of technical tender documents
Technical bid evaluation
Feasibility studies & financial analyses
Market research studies
Analysis of legal framework
Energy scenarios/planning models
Training and curriculum development
PUBLICATIONS
Co-author of an Encyclopaedia of Physics (published in 2000)
Various publications in international magazines on renewables
Numerous presentations during international conferences and seminars on energy efficiency and
renewable energy
Resume - Cornelius Suchy Feb 2020 Page 3 of 4
PROFESSIONAL EXPERIENCE RECORD:
Jul 2009 – present: CEO, CANADIAN BIOMASS ENERGY RESEARCH (CBER), Revelstoke, B.C., Canada
Jul 2005 – May 2009: CEO, MAWERA (Canada) Ltd, Revelstoke, B.C., Canada
Aug 2004 – Jun 2005: Project Leader / Team Leader for the Renewable Energy Project Nepal,
SOFRECO, Lalitpur, Nepal
Jan 2003 – Jul 2004: Freelance consultant, Revelstoke, B.C., Canada
Mar 1999 – Jun 2002: Head of Almaty office, MVV CONSULTANTS & ENGINEERS GmbH, Almaty,
Kazakhstan
Apr 1997 to Mar 1999: 1999 Project/Task Manager, INTERNATIONAL CENTRE FOR ENERGY AND
ENVIRONMENTAL TECHNOLOGIES Brussels, Belgium
Jun 1994 – May 1996: Project assistant, INSTITUTE FOR APPLIED ECOLOGY Freiburg, Germany
Feb 1993- Oct 1993: Freelance consultant, ARCHITECT FIRM M. BLASWEILER, Freiburg, Germany and
Beuren, Germany
Mar 1990 - Aug 1992: Research assistant, FRAUNHOFER-INSTITUTE FOR SOLAR ENERGY SYSTEMS
Freiburg, Germany
Resume - Cornelius Suchy Feb 2020 Page 4 of 4
SELECTED PROJECT EXPERIENCE
XENI GWETIN FIRST NATION, 2019
Biomass Combined Heat & Power Feasibility Study for
Nemiah Valley, BC.
BC BIOENERGY NETWORK AND BC MINISTRY OF
ENERGY, 2019
Comprehensive plan for revitalizing the B.C. Bioenergy
Sector in light of the Clean BC targets.
NATURAL RESOURCES CANADA (NRCAN), 2018-19 Energy Economics and Subsidies in Remote Communities.
CANADIAN COUNCIL OF THE MINISTERS OF
ENVIRONMENT (CCME), 2018-19 Guidance for Managing Air Emissions from Small Biomass.
SELKIRK FIRST NATION, 2018
Biomass Energy Business Strategy for Pelly Crossing, YT.
NATIONAL RESEARCH COUNCIL CANADA (NRC),
VANCOUVER, 2017
Guideline for Permitting Requirements for Small
Biomass-fueled CHP Plants
NATURAL RESOURCES CANADA (NRCAN), OTTAWA,
2016
Roadmap to increased use of biomass as a partial substitute
for diesel in remote aboriginal communities.
YUKON ENERGY CORP (YEC), WHITEHORSE, 2016 Wind Site Inventory of the Yukon Territory. Economic
evaluation of seven project sites.
INDIGENOUS AND NORTHERN AFFAIRS CANADA
(INAC), OTTAWA, 2014 - 2018
Technical evaluation of renewable energy proposals and
redeveloping the ecoEnergy support program.
BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY
(BCIT), BURNABY, BC, SINCE 2013
Engineering design for a wood-waste boiler plant for a
district heating system.
METRO VANCOUVER, BC, 2012- 2013
Feasibility study for an Organic Rankine Cycle (ORC) system
at two of MV’s waste water treatment plants.
CITY OF TORONTO, ON, 2011 - 2012
Feasibility Study of Potential for Use of Urban Forestry
Wood as Biomass Fuel;
T’IT’Q’ET FIRST NATIONS/ T’IT’Q’ET ECONOMIC
DEVELOPMENT AUTHORITY /TEDA) LILLOOET, BC,
2010
Feasibility study for wood residue fueled heating and
cogeneration at Aspen Planer’s Veneer Mill.
KAMLOOPS INDIAN BAND, KAMLOOPS, BC, 2009 -
2010 Feasibility study for a centralized bio waste-to-energy
system at the Kamloops Indian Band.
INTERNATIONAL RENEWABLE ENERGY ASSOCIATION
(IRENA), UNITED ARAB EMIRATES, 2016 Technical Concept Guidelines for project development of
biofuel plants.
ASIAN DEVELOPMENT BANK (ADB), TAJIKISTAN, 2015
Promotion of Direct Investment in Priority Climate
Technology Projects in vocational schools of Tajikistan.
EUROPEAN COMMISSION / GOVERNMENT OF
UZBEKISTAN / SOFRECO, UZBEKISTAN, 2009 Feasibility study for the World Bank: “On-Site Renewable
Energy Generation in Health Care and Educational Facilities
in the Province Of Andijan”.
EUROPEAN COMMISSION / GOVERNMENT OF NEPAL
/ SOFRECO, NEPAL, 2004 - 2005
Team Leader of the Renewable Energy Project Nepal.
Planned and established a € 15 million solar energy
development project.
UNITED NATION DEVELOPMENT PROGRAM (UNDP) /
CANADIAN INTERNATIONAL DEVELOPMENT AGENCY
(CIDA), KAZAKHSTAN, 2001- 2002 Solar Pre-heating Pilot Demonstration Project at a District
Heating Boilerhouse in Almaty, Kazakhstan
EUROPEAN COMMISSION / MVV CONSULTANTS &
ENGINEERS, CITY OF TASHKENT, UZBEKISTAN, 1999 -
2002 for a 3-year, €3 million project: “Technical Assistance for the
Restructuring of District Heating ”.
EUROPEAN PARLIAMENT / INTERNATIONAL CENTRE
FOR ENERGY AND ENVIRONMENT, BRUSSELS,
BELGIUM, 2001 - 2002 Potential study “Production Capacity of Renewable Energies
in the European Union”.
UNITED NATION DEVELOPMENT PROGRAM (UNDP) /
GLOBAL ENVIRONMENTAL FUND / GOVERNMENT OF
KAZAKHSTAN, ALMATY, KAZAKHSTAN, 2001 - 2002 Masterplan for District Heating in the City of Almaty.
EUROPEAN COMMISSION / GOVERNMENT OF THE
UKRAINE / MVV CONSULTANTS & ENGINEERS,
UKRAINE, 2001
Energy efficiency pilot demonstration project in the
Cherkassy General Hospital.
WORLD BANK, MINISTRY OF MACROECONOMICS
AND STATISTICS OF UZBEKISTAN, UZBEKISTAN, 1997 -
1998
Small Hydropower Investment Prefeasibility Study - National
Greenhouse Gas Mitigation Strategy Study.
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