PowerStream Inc. and Collus PowerStream Inc. Business Refrigeration Incentives Program Rules
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1 A. Program Rules PowerStream Inc. and Collus PowerStream Inc. Business Refrigeration Incentives Program Rules 1. Program Description The Business Refrigeration Incentives Program (BRI Program) provides funding for free facility audits and refrigeration equipment upgrades (to a maximum of $2,500) to non-residential customers that have commercial product refrigeration and an average annual peak demand of less than 250 kw. Projects with a cost in excess of $2,500 are allowed provided that the Participant funds costs that exceed the $2,500 BRI Program threshold. The BRI Program aims to overcome the substantial market barriers associated with promoting energy efficient refrigeration equipment upgrades to small businesses including: limited awareness of energy use and time of use (TOU) rates, electricity operating costs of refrigeration equipment, limited availability of refrigeration equipment from distributors, and limited access to capital to upgrade refrigeration equipment. If approved and in effect in accordance with the Energy Conservation Agreement, the BRI Program is a Program as defined in the Energy Conservation Agreement. 2. Program Offer / Participant Incentives The incentives available to a Participant under the BRI Program are as follows: a Facility audit at no cost to the Participant; a customized energy action plan at no cost to the Participant, which includes: o recommendations on how to improve energy efficiency at the Facility based on information gathered during the audit (gas, water and electric); o comparative benchmark of the Facility s electricity use against similar businesses; and o information to cross-promote other efficiency programs (CDM, water and DSM) where applicable; and direct installation of eligible refrigeration measures and services in an amount up to $2,500 excluding applicable taxes. 3. Program Eligibility Criteria a. Participant Eligibility To be eligible to participate in the BRI Program, a Participant must: i. have a General Service Account with the LDC (i.e. customers with only residential LDC accounts will not be eligible); ii. have not received, is not receiving and has not applied for or otherwise intends to receive, any financial incentives funded by energy ratepayers or taxpayers of
2 iii. the Province of Ontario with respect to Eligible Measures to be implemented; and not be a previous BRI Program Participant in respect of the Facility where the Eligible Measures are to be installed. b. Facility Eligibility To be eligible to participate in the BRI Program, the Participant s Facility must: i. be owned or occupied by the Participant. If the Facility is leased, the Participant must have the authority to have the Eligible Measures installed as a condition of the lease or with the consent of the owner of the Facility; ii. have an average annual demand of less than 250 kw, provided that where the Facility is not individually metered by the LDC, have an average estimated demand of all units connected to that meter over a twelve month period of less than 250 kw based on the bulk-metered data; and iii. have in use commercial-grade refrigeration equipment used to cool products (i.e. customers with only residential refrigeration equipment will not be eligible). c. Project and Measures Eligibility For purposes of the BRI Program, Eligible Measures are: i. Anti-sweat heater controls ii. Strip curtains for walk-in coolers and freezers iii. Night curtains on display cases iv. Cleaning cooler/freezer condenser units v. Electronically Commutated Motor upgrade (condenser and evaporator) vi. LED display case lighting vii. LED bulb (inside a walk-in cooler or freezer) The LDC may determine, acting in its sole discretion, that a proposed Project is ineligible if the LDC determines that there are undue risks or safety concerns to the LDC or its contractors associated with working on the existing equipment. Where an amendment to these Program Rules has been approved by the IESO pursuant to the Energy Conservation Agreement, the list of Eligible Measures in the BRI Program may change from time to time based on factors such as: Participant uptake, Eligible Measure availability, cost and new technologies. A Project must be comprised of Eligible Measures and cannot be fractions of or part of Eligible Measures.
3 d. Eligible Costs Eligible costs for Eligible Measures will be subject to a cap set out in Table 1 below. [Note to Reader: Table 1 is redacted from the Program Rules made available to the public.] For each Eligible Measure, the average per-unit cost for that measure across all Projects may not exceed the amount set out in Table 1 (the Eligible Measure Price Cap). 4. Project Documentation Each project conducted under the BRI Program (a Project) must: (a) be based on a Work Order presented to the Participant by the LDC; and (b) be documented by a Participant Agreement between the Participant and the LDC that will include certain terms and conditions prescribed by the Energy Conservation Agreement and any other provision required to give effect to these Program Rules. 5. QA/QC Minimum Requirements a. QA/QC Inspections From time-to-time throughout the Term, the LDC will use commercially reasonable efforts to visit some of the Facilities for which Work Orders have been submitted and approved to undertake quality assurance/quality control inspections (QA/QC Inspections). Facilities will be selected for QA/QC Inspections in accordance with the Sampling Protocol. The LDC may carry out the QA/QC Inspections through LDC employees or third party service providers, provided that the firm or person conducting the QA/QC Inspection is not also an Installer. b. QA/QC Inspection Procedure For each QA/QC Inspection, the LDC shall determine whether: i. the Participant and Facility eligibility criteria were met; ii. the work done was an Eligible Measure, and was installed in accordance with the Work Order; iii. the Participant signed the Work Order and the Participant Agreement; iv. the invoices submitted by the Installer to the LDC in connection with the Work Order accurately set forth the model numbers or descriptions and quantities of purchased Eligible Measures; v. the payment to the Installer was calculated correctly; and vi. all other requirements of the Work Order and Participant Agreement were complied with.
4 6. Minimum Reporting Requirements At a minimum, and subject to the Energy Conservation Agreement, the LDC will submit to the IESO all required information as set out in the Reporting and Settlement Requirement Rule, on at least a quarterly basis, which, without limiting the generality of the foregoing, may include the following: (a) All data from Work Orders; (b) Data from any invoices provided by the Installers to the Participants where Participant Contribution are being made; (c) Data from invoices from the Installers to the LDC; and (d) Data related to QA/QC Inspections. 7. Other To implement the BRI Program, the LDC may directly employ Installers or may contract with Installers on reasonable commercial terms to fulfill, on behalf of the LDC, any or all of the LDC s BRI Program obligations, including without limitation performing Facility audits, creating Facility energy action plans, installing Eligible Measures and disposing of existing equipment and waste products. Any such contracting with third-party Installers shall be done in accordance with: (a) Laws and Regulations (including, in the case of an Installer that is an Affiliate, the Ontario Energy Board s Affiliates Relationships Code for Electricity Distributors and Transmitters), (b) Good Industry Practice, and (c) the requirements of the Electrical Safety Act (Ontario) and related codes and regulations. The LDC shall ensure that each such Installer shall assume responsibility and liability for the quality of all work and materials (including without limitation in relation to Eligible Measures) and carry insurance consistent with Good Industry Practice and that all materials and equipment used have warranties and are purchased on terms and conditions consistent with Good Industry Practice. The LDC shall ensure that: (a) each Installer possesses a valid letter of clearance from the Ontario Workplace Safety & Insurance Board (unless the Installer is a sole proprietor); and (b) each Installer receives training and direction to participate in the BRI Program, including, without limitation, to ensure that the Installer has received training in respect of all of the terms and conditions of the BRI Program. The LDC shall use commercially reasonable efforts to ensure that the installation of any Eligible Measures and other services associated with such installation complies with all Laws and Regulations (including without limitation the Electrical Safety Act (Ontario) and related codes and regulations. 8. Program Specific Definitions The following terms have the meaning stated below when used in these Program Rules:
5 Affiliate has the meaning given to it in the Business Corporations Act (Ontario). BRI Program has the meaning given to it in Section 1. Eligible Measure has the meaning given to it in Section 3(c). Eligible Measure Price Cap has the meaning given to it in Section 3(d). Good Industry Practice means, in respect of any aspect of any Eligible Measure or other activity conducted in furtherance of the BRI Program, care and disposal of materials, or other actions or obligations contemplated in these Program Rules, in each case, that have been or ought to have been performed by an Installer, and subject always to Laws and Regulations, the exercise of the degree of skill, diligence, prudence and foresight which could reasonably and ordinarily be expected from a skilled and experienced Installer engaged in the same or similar type of undertaking under the same or similar circumstances. Energy Conservation Agreement means the energy conservation agreement between the LDC and the IESO. Facility means the building, premises, or part thereof owned or occupied by the Participant at which a Project will be implemented. General Service Account means a non-residential LDC account with an average annual peak demand of zero to 250kW. Governmental Authority means any federal, provincial, or municipal government, parliament or legislature, or any regulatory authority, agency, tribunal, commission, board or department of any such government, parliament or legislature, or any court or other law, regulation or rulemaking entity, having jurisdiction in the relevant circumstances, including the IESO, the Ontario Energy Board, the Electrical Safety Authority, the Environmental Commissioner s Office, the Information and Privacy Commissioner of Ontario and any person acting under the authority of any of the foregoing. IESO means the Independent Electricity System Operator of Ontario established under Part II of the Electricity Act, 1998 (Ontario), or its successor. Installer means an employee of the LDC or a third-party service provider to the LDC who may be hired to install Eligible Measures at a Facility. For certainty, depending on the type of Eligible Measures to be installed, the Installer will be either (a) a Refrigeration and Air Conditioning Mechanic (either holding a Certificate of Qualification or be a Registered Apprentice) or (b) an electrician licensed to practice in the province of Ontario. Laws and Regulations means: (a) applicable multi-national, international, federal, provincial or municipal laws, orders-incouncil, by-laws, codes, rules, policies, regulations and statutes;
6 (b) (c) (d) applicable orders, decisions, codes, manuals, interpretation bulletins, judgments, injunctions, decrees, awards, directives, directions and writs of any court, tribunal, arbitrator, Governmental Authority or other person having jurisdiction; applicable rulings and conditions of any licence, permit, certificate, registration, authorization, consent and approval issued by a Governmental Authority; and any requirements under or prescribed by applicable common law. LDC means the local distribution company offering and delivering the BRI Program. For certainty, PowerStream Inc. and Collus PowerStream Inc. expect to deliver the BRI Program. Participant means, in respect of the BRI Program an eligible person under Section 3(a) of these Program Rules who is a party to a Participant Agreement or who is receiving an incentive under Section 2 of these Program Rules, and that has met all applicable requirements for participation in the BRI Program as set out in these Program Rules, including entering into or agreeing to be bound by any required Participant Agreement. Participant Agreement means, in respect of the BRI Program, any one or more agreements or terms and conditions that an eligible person entitled to receive an incentive under Section 2 of these Program Rules must enter into or agree to be bound by in order to participant in the BRI Program or to receive such incentive. Participant Contribution means any amount required to implement an Eligible Measure that exceeds the LDC s $2,500/Project threshold, which excess amount, for clarity, shall be funded by the Participant. Project has the meaning given to it in Section 4. QA/QC Inspection has the meaning given to it in Section 5(a). Sampling Protocol means the protocol implemented by the LDC to create a randomly selected sample of Work Orders for purposes of conducting QA/QC Inspections, such that: (e) (f) (g) the Facilities are geographically spread over the LDC s service area; each Installer is represented in the sample; the number of Work Orders sampled in a calendar year, based on an estimate of the number of Work Orders in that calendar year, is the lesser of (i) sufficient to provide a confidence level that is at least 95% with a margin of error no greater than 5%, assuming a response distribution of 3%; and (ii) equal to 10% of all estimated Work Orders. Term means the duration that the BRI Program is approved pursuant to the Energy Conservation Agreement.
7 TOU has the meaning given to it in Section 1. Work Order means, in respect of a given Project, the completed work order document in the form required by the LDC.
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