In partnership with: And support from:

MILTON HYDRO

Business Experiences Undertaking Electricity Conservation and Demand Management Activities:

An Investigation of Medium- and Large-Scale Electricity Customers in Milton, Ontario

Research Overview

• Definition:• Conservation and Demand Management (CDM): lowering and/or

shifting electricity usage• Energy Drill Program: Aggregation of local customers to

participate in a province wide demand response program

• Research Questions:• What CDM activities were undertaken and what impacts did they

have? • Why do organizations undertake electricity CDM activities?

• Methodology:– Single case study of General Service > 50 kW electricity

customers in Milton Hydro distribution area (Milton, ON)• Same group targeted by Milton Hydro’s Energy Drill Program including Industrial, Commercial and Institutional Customers

– Participant Observations, Interviews, Public Information, Electricity Consumption Data Analysis

Participants and Activities

Participants• 17 Participant Organizations

– 7 Commercial, 4 Institutional, 6 Industrial– 50-1000 kW: 14, > 1000 kW: 3

CDM Activities• Conservation (operation)

– E.g. Energy Audits, Awareness, Equipment off at night• Efficiency (design/equipment)

– E.g. Upgrade Lights, A/C etc.• Demand Response (time of day lowering and/or shifting)

- E.g. Temporarily reduce lighting, A/C and/or other equipment- E.g. Shift usage to off-peak times

Motivations

• Competitive• Finances “short answer - it’s all about

money”, “can’t justify $1/4 mil. for the environment”

• Business Image• Customer Satisfaction• Employee Satisfaction employees are “treehuggers”

• Legitimation• Consistent with Policies/Objectives• Community Initiative

• Altruism• Consistent with Personal Values “don’t like to waste”• Community Support• Electricity System Reliability• Corporate Social Responsibility “being a good

corporate citizen”• Environment “do what we can”

Enablers and Barriers

Enablers• Energy Drill Program - Public Marketing, Payment Incentive• Energy Management Capacity• Technological Room To Improve / Equipment Failures• Available, Functional Equivalent and Quality Technology

Barriers• Payback Period• Tenants/No Separate Billing• Safety• Multiple Facilities• Original Facility Design - Light Switches• “Just In Time” Operations

Impact Example

CDM Gradient

• Financial and Environmental, w/ Champion

High CDM

Low CDM

• Financial / Competitive

• Environment

• Small Financial

• Environmental “do what we can”

CDM Impact vs. Motivations, Enablers and Barriers

Conclusion

• Almost always an energy conservation opportunity which leads to some financial benefit of varying scales

• Significant CDM activities are undertaken based on • Financial +

• Energy Management• Internal Champion• Other Competitive Benefits - Image, Customers, Employees• Available, functional and quality technologies• Lack of over-riding barriers

Contact

Stephen Mooney, BAScMES CandidateEnvironment and Resource Studies, Faculty of Environmental

StudiesUniversity of Waterloo416-786-6366smooney@uwaterloo.ca

Supervisor:Ian H. Rowlands, BASc, PhDAssociate Professor, Environment and Resource StudiesAssociate Dean, Research, Faculty of Environmental StudiesUniversity of Waterloo519-888-4567, ext. 32574irowland@fes.uwaterloo.ca

Participants

• 17 Participant Organizations

• Commercial: 7• Institutional:

4• Industrial: 6

• 50-1000 kW: 14• > 1000 kW: 3

Bill Categories:• Spot (Hourly):

9• RPP: 8

(Regulated Price Plan)

P# Sector Demand Range Billing Category P1 Commercial > 50 kW Spot Market P2 Industrial > 50 kW RPP P3 Commercial > 50 kW RPP P4 Institutional > 50 kW RPP P5 Commercial > 50 kW Spot Market P6 Institutional > 1000 kW RPP P7 Industrial > 50 kW Spot Market P8 Industrial > 1000 kW Spot Market P9 Institutional > 1000 kW Spot Market P10 Commercial > 50 kW Spot Market P11 Industrial > 50 kW RPP P12 Commercial > 50 kW RPP P13 Industrial > 50 kW RPP P14 Commercial > 50 kW Spot Market P15 Industrial > 50 kW Spot Market P16 Commercial > 50 kW Spot Market P17 Institutional > 50 kW RPP

CDM ActivitiesOrganizations

CDM Activities P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14 P15 P16 P17 Conservation

Operate With Reduce Lighting X Lighting - Timers, Photocells X X X X

Reminders/Stickers X X Turn Off Equipment (Nights/Weekends)

X X X X

Reduce Electric Heating X Awareness/Recognition Events X X

Workshops X Efficiency

Higher Efficiency Lighting X X X X X X X HVAC: Equipment Upgraded X X X X X X Process Equipment: Upgraded X X X

Industrial Process Review X Programmable Thermostats X X X X X

Window Replacements/Maintenance X X Demand Response

Peak Lights X X X X X X X X X

HVAC X X X X X X X X X Office Equipment X X X

Industrial Equipment X Program

Energy Drill/TDRP X X X X X X X X TDRP X

Period Temporary Reduce Lighting X X X

Temporary Reduce A/C X Shift usage to off-peak times X X X

Power Factor Correction X