ENERGY SUSTAINABILITY

Transcription

1 VISION To be a community of choice ENERGY SUSTAINABILITY BUSINESS PLAN AND OPERATING BUDGET MISSION To exceed expectations in the value of our services

2 BUSINESS PLAN ENERGY SUSTAINABILITY 1. ENERGY SUSTAINABILITY OVERVIEW The Department s primary function is to prepare local residents for a fossil fuel constrained world by delivering HAT Smart education and incentive programs, and by providing support and leadership to encourage progress towards local energy sustainability goals and objectives. 1. Community provide program development and support to help the community achieve the energy targets set out in the 2008 Community Environmental Roadmap: 25% of residential energy from renewable sources by % decrease in residential per capita energy consumption by Energy Distribution Customer Care provide customer support to City energy customers based on direct information requests by customers and/or referrals from City Hall customer service and utility billing staff. Service includes: home/business energy audits, HAT Smart program awareness, energy counseling, and utility rate education. The Department also supports Council s environmental stewardship priority by monitoring community progress towards all the targets outlined in the Community Environmental Roadmap Business Plan ENERGY SUSTAINABILITY 15.1

3 BUSINESS PLAN 2. DEPARTMENT STRUCTURE Manager, Energy Sustainability 1.0 FTE Vacant Sustainable Energy Advisor 1.0 FTE Wayne Perehudoff Admin Support - Shared Laura Riley Business Plan ENERGY SUSTAINABILITY 15.2

4 3. CORE ACTIVITIES 3.1 SUB-DEPARTMENT: COMMUNITY Aim: Help the community address the renewable energy and energy conservation priorities identified in their Community Environmental Roadmap Work with the community to assist them in working towards the Community Environmental Roadmap targets around residential energy use: o Energy Conservation Roadmap target of a 20 per cent reduction in per capita residential natural gas and electricity consumption by 2020 o Renewable Energy Roadmap target of 25 per cent of residential energy being provided by renewable sources by 2025 Development and adoption of commercial energy targets Evaluation of non-traditional energy investment opportunities Assumptions: The HAT Smart brand is the preferred promotional vehicle for Medicine Hat environmental initiatives Funding to support community energy objectives: Energy Conservation Charge, Nature s Best Reserve, Council s Energy Dividend Diverse education and outreach approaches are required to reach a broad cross-section of the population Renewable energy demonstration projects will be brought forward for City Council s consideration highlighting each project s economic and environmental impact. The Community Environmental Roadmap highlights the community s environmental priorities Support will be required from Corporate Communications regarding informing the community about Community Environmental Roadmap initiatives Customers: City Council Community Utility rate payers Opportunities/Trends/Challenges: Opportunities Increasing community awareness / interest about energy conservation and renewable energy issues Medicine Hat renewable energy potential (Solar, Wind, Aquifer) Trends Increasing community awareness /interest in environmental issues Challenges Explaining somewhat technical information to a diverse group of customers Business Plan ENERGY SUSTAINABILITY

5 3.2 SUB-DEPARTMENT: ENERGY DISTRIBUTION CUSTOMER CARE Aim: To provide energy solutions to utility customers who express concerns regarding their home or business energy consumption and/or utility bill energy charges Assumptions: The City s energy utilities are required to provide energy education and awareness to customers who are interested in energy conservation and renewable energy Energy customers are interested in exploring ways to conserve energy and reduce their reliance on fossil fuels Customers: Electric and Gas Utilities Energy Utility customers Opportunities/Trends/Challenges: Opportunities City Council is supportive of energy conservation and renewable energy initiatives Increasing community awareness /interest in energy conservation and renewable energy Trends Increasing community awareness /interest in energy conservation and renewable energy Challenges Explaining somewhat technical information to a diverse group of customers Business Plan ENERGY SUSTAINABILITY

6 4. GOALS: 4.1 FINANCIAL Goal: Work within existing operating and capital budgets Action Plan: Incremental Operating $ Capital Cost: $ Monitor monthly operating and capital variance report Measures of Success: No year end negative variance for operating or capital budget 4.2 CUSTOMERS Goal: Develop HAT Smart residential / commercial energy education and incentive programs to support the community s environmental objectives. Action Plan: Incremental Operating $200,000 Capital Cost: $ HAT Smart residential programs are funded with energy conservation charges ($200,000 embedded in the operating budget) and commercial programs are to be funded by a contribution request from City Council s Energy Dividend -$200,000. The HAT Smart programming is being developed with the objective of maximizing value by leveraging alignment with existing provincial / federal / utility incentive and education programs. HAT Smart will, at a minimum, consist of: Energy conservation education/incentives Renewable energy incentives Measures of Success: HAT Smart - progress is made in relation to the: Renewable target (25 per cent of residential energy being provided by renewable sources by 2025) Conservation target (20 per cent reduction in per capita residential natural gas and electricity consumption by 2020) Business Plan ENERGY SUSTAINABILITY

7 4.3 CUSTOMERS Goal: Development of the HAT Smart Education Centre Work with Land and Properties to construct a HAT Smart house to incorporate the latest construction techniques (EnerGuide / BuiltGreen / Energy Star / Passive House) employing energy efficient technology and renewable energy. The house would act as Energy Sustainability s office and an education centre for the general public, schools and construction professionals. Action Plan: Incremental Operating $ Capital Cost: $ Proposed to be funded using Land and Properties working capital to be requested, once the scope and cost of the project has been determined, through a separate Land and Properties Decision Item. Increase community awareness (homeowners / homebuilders) of residential energy conservation and renewable energy opportunities to help promote Energy Conservation and Renewable Energy Measures of Success: Number of visitors to the HAT Smart Education Centre Uptake of HAT Smart New Home residential incentives Progress towards the residential energy conservation / renewable energy targets 4.4 LEARNING & GROWTH Goal: Work with department employees to ensure access to development opportunities aligned with the future career interests outlined in individual achievement planners A one day team building activity per year Action Plan: Incremental Operating $ Capital Cost: $ Support and encourage employees to further their education and development Measures of Success: Improved employee satisfaction as compared to the 2008 survey Business Plan ENERGY SUSTAINABILITY

8 ENERGY SUSTAINABILITY (Section 13) Department Overview: Energy Sustainability s primary function is to prepare local residents for a fossil fuel constrained world by delivering HAT Smart education and incentive programs, and by providing support and leadership to encourage progress towards local energy sustainability goals and objectives. Energy Sustainability develop and implement initiatives that result in increased awareness and action related to energy conservation and renewable energy. Education and Outreach enhance the effectiveness of the implementation and promotion of corporate and community environmental initiatives through comprehensive education and outreach strategies. Aim: To support Council s Environmental Stewardship priority by monitoring community progress towards all the targets outlined in the Community Environmental Roadmap and strive to foster a community and corporate culture that considers the environmental impact of its actions. Budget Assumptions: Renewable energy demonstration projects will be brought forward for City Council s consideration highlighting each project s economic and environmental impact. Significant support will be required from Corporate Communications regarding informing the community with respect to the new emphasis on the Community Environmental Roadmap and alternate energy projects. The HAT Smart brand is the preferred promotional vehicle for Medicine Hat environmental initiatives. Diverse education and outreach approaches are required to reach a broad cross section of the population. Funding to support community energy objectives from the Energy Conservation Charge, Nature s Best Reserve and City Council s Energy Dividend. Opportunities, Trends and Challenges: Medicine Hat renewable energy potential (solar, wind, aquifer). Increasing community awareness and interest regarding energy conservation and renewable energy issues. Frequently changing federal and provincial environmental regulations. Core Activities: Energy Sustainability strives to assist the community in addressing the renewable energy and energy conservation priorities identified in their Community Environmental Roadmap; provide energy solutions to utility customers who express concerns regarding their home or business energy consumption and/or utility bill energy charges; develop commercial energy targets; and the evaluation of non-traditional energy investment opportunities. Goals: Work with the community to help achieve the Community Environmental Roadmap targets around Energy Sustainability. 25% of residential energy from renewable sources by % decrease in residential per capital energy consumption by 2020 Enhance the implementation and promotion of corporate and community environmental initiatives through comprehensive education and outreach. Development of a HAT Smart Education Centre to incorporate the latest construction techniques (EnerGuide / BuiltGreen / Energy Star / Passive House) employing energy efficient technology and renewable energy. Evaluate non-traditional energy investment opportunities. Work with department employees to ensure access to development opportunities aligned with the future career interests outlined in individual achievement planners. Page 16.1

9 This page intentionally left blank. Page 16.2

10 ENERGY SUSTAINABILITY OPERATING PLAN Activity Summary (Statement of Operating Revenues and Expenditures By Activity) In thousands of dollars ACTIVITY DESCRIPTION / 2012 / 2013 / 2013 / 2014 / 2014 / 2010 EST B B % 2012 B B % 2013 B B % ACTUAL ACTUAL BUDGET CHANGES BUDGET CHANGE Note CHANGES BUDGET CHANGE Note CHANGES BUDGET CHANGE Note FORECAST FORECAST REVENUE Internal Recoveries (26) 274 (8.8) Energy Conservation Energy Dividend TOTAL REVENUES EXPENSES Administration (26) 424 (5.9) Hat Smart TOTAL OPERATING EXPENSES NET EARNING (LOSS) (0) (0) (172.5) 0 0 (301.2) (5) (11) ACTIVITY SUMMARY 16.3 The City of Medicine Hat Operating Plan

11 ENERGY SUSTAINABILITY OPERATING PLAN Change in Financial Position (Statement of Changes in Financial Position) In thousands of dollars ACTIVITY DESCRIPTION 2012 / 2013 / 2014 / B % B % B % ACTUALS EST. ACTUAL BUDGET BUDGET CHANGE BUDGET CHANGE BUDGET CHANGE FORECAST FORECAST OPERATING ACTIVITIES Net Earnings (Loss) (0) (173) 0 (301) (5) (11) Add: Depreciation Expenses TOTAL OPERATING ACTIVITIES (0) (172.5) 0 (301.2) (5) (11) INVESTMENTS Plant, Property & Equipment - Current Year Budget Prior Year Budget Inventories not for Resale TOTAL INVESTING ACTIVITIES FINANCING Long Term Debt Issued Debenture Principal Repaid Internal Loan Principal Repaid Contributions for Capital Projects TOTAL FINANCING ACTIVITIES INCR/(DECR) IN WORKING CAPITAL OPENING WORKING CAPITAL CLOSING WORKING CAPITAL (0) 0 (5) (11) (0.0) CHANGE IN FINANCIAL POSITION 16.4 The City of Medicine Hat Operating Plan

12 OPERATING PLAN Summary of Personnel Changes and Notes (Explanatory Notes to Activity Summary) ENERGY SUSTAINABILITY SUMMARY OF PERSONNEL CHANGES FOR OPERATING PLAN: 2011 RECOMMENDED CHANGES 2012 RECOMMENDED CHANGES 2013 RECOMMENDED CHANGES POSITIONS APPROVED Reductions Additions BUDGET Note Reductions Additions BUDGET Note Reductions Additions BUDGET Note FORECAST FORECAST Permanently Established Positions (PEPs) Term Positions (TERM) Full Time Equivalent Positions (FTEs) EXPLANATORY NOTES TO STATEMENT OF REVENUES AND OPERATING EXPENSES BY ACTIVITY: NOTES: For Wages Explain Changes > 0% AND all Personnel Changes, otherwise Explain All Other Changes >2.1% and >$10, Notes: Increase Operating Budget Revenues and Expenses to include HAT Smart Commercial Incentives ($200,000) to be funded by the Energy Dividend ****************************************************************************************************************************************************************************************************************************************************************************************************************************************** 2013 Notes: ****************************************************************************************************************************************************************************************************************************************************************************************************************************************** 2014 Notes: SUMMARY OF PERSONNEL & EXPLANATORY NOTES 16.5 The City of Medicine Hat Operating Plan

13 ENERGY SUSTAINABILITY OPERATING PLAN Object Summary (Statement of Operating Revenues and Expenditures By Object) In thousands of dollars / 2012 / 2013 / 2013 / 2014 / 2014 / 2010 EST B B % 2012 B B % 2013 B B % ACTIVITY DESCRIPTION ACTUAL ACTUAL BUDGET CHANGES BUDGET CHANGE CHANGES BUDGET CHANGE CHANGES BUDGET CHANGE FORECAST FORECAST REVENUE Internal Recoveries (26) 274 (8.8) Energy Conservation Energy Dividend TOTAL REVENUES EXPENDITURES Salaries, Wages & Benefits (7) 250 (2.6) Other Personnel Costs Contracted Services (3) 42 (6.9) (5) 37 (12.1) (7) 30 (17.8) Hat Smart Materials and Supplies Interdepartmental Charges (18) 118 (13.1) Depreciation TOTAL OPERATING EXPENDITURES NET EXPENDITURES (19) (102) 0 (0) (0) (172.5) (0) (0) (301.2) 5 11 OBJECT SUMMARY 16.6 The City of Medicine Hat Operating Plan

14 ENERGY SUSTAINABILITY Business Plan and Budget Overview 1

15 ENERGY SUSTAINABILITY BUSINESS PLAN Purpose: To prepare local residents for a fossil fuel constrained world by delivering HAT Smart education and incentive programs, and renewable energy project development and commercialization opportunities. Support and leadership to encourage progress towards local Energy Sustainability goals and objectives. Objectives: 1. HAT Smart education and incentive programs (conservation and renewable energy) 2. Customer Care to City gas and electric utility customers through home/business energy audits, HAT Smart program awareness, energy counseling and utility rate education 3. Evaluation of utility scale Renewable Energy commercialization opportunities in Medicine Hat Goals: Develop and implement HAT Smart II residential and commercial energy sustainability education and incentive programs Development to commercialization of utility scale renewable energy technologies in Medicine Hat 2 2

16 ENERGY SUSTAINABILITY 2012 ASSUMPTIONS AND STRATEGIES Strategies: HAT Smart renewable energy / conservation education and incentive programs: HAT Smart III (2012) Customer Engagement Community Environmental Roadmap: Corporate Communications to develop and manage an online survey of the 2005 Roadmap participants to get feedback and determine any required adjustments to the Community Environmental Roadmap performance measures or targets Assumptions: Energy Conservation Charges would continue to fund HAT Smart programming for residential customers A portion of City Council s Energy Dividend ($200,000) would continue to fund HAT Smart programming for commercial customers 3 3

17 ENERGY SUSTAINABILITY OPERATING BUDGET Energy Sustainability Financial Summary 2011 Budget 2011 Forecast 2012 Proposed Budget 2013 Proposed Budget 2014 Proposed Budget Revenue $650,000 $752,000 $823,570 $827,214 $830,937 Expenditures $650,000 $752,000 $823,570 $827,214 $830,397 Net $0 $0 $0 $0 $0 Revenue: Energy Dividend support of $200,000 for HAT Smart commercial customers included as Operating Revenues Reduction of $21,934 from Inter-Departmental charges (Environmental Utilities) Expenditures: HAT Smart residential and commercial programming $400,000 Energy distribution customer care support (energy audits, HAT Smart program awareness, energy counseling and utility rate education) $300,000 Community Environmental Roadmap and evaluation of non-traditional energy investment opportunities $124,000 4

18 RECOMMENDATION That City Council: Approve the Business Plan Approve the Operating Budget 5