Business Plan: Energy Conservation

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1 Business Plan: Energy Conservation How does this service contribute to the results identified in the City of London Strategic Plan? A Green and Growing City A Strong Economy This business area s key focus is on Energy Conservation leadership and playing a key role in the Corporate Energy Management Program which is jointly-managed by Environmental Programs (Environmental & Engineering Services), Facilities/Corporate Asset Management and Purchasing and Supply (Finance and Corporate Services). The purpose is to contain and reduce the financial impacts of energy costs to the Corporation and reduce environmental impacts from energy use in corporate facilities and operations. This is achieved through the implementation of energy conservation and demand management projects and design principles in existing and new facilities; the implementation of cost-effective renewable energy technologies; and leading the development of a culture of conservation within the services areas of the Corporation. City staff and our contractors are driven by our mission At Your Service: A respected and inspired public service partner. The City of London needs to lead by example by employing cost-effective energy saving and renewable energy measures which can then act as a showcase for other industrial, commercial and institutional buildings in London. Investing in facility upgrades, conservation measures, renewable energy, and energy-efficient new facilities helps to create demand (and jobs) for local energy-related product and service providers. Given that energy prices are forecast to rise at rates higher than inflation (about 7 percent per year) for the next five years, energy conservation and energy efficiency will be required to mitigate the impact rising energy prices on the cost of providing services. 1

2 Name the main activities done to provide this service: Name The Activities Done To Provide This Service 1. Tracking, Monitoring and Reporting on Energy Consumption 2. Energy Conservation and Demand Management Plans 3. Energy Conservation and Demand Management Projects How Much Did We Do? (optional) The Green Energy Act and the Ontario Regulation 397/11 requires the City of London to provide energy consumption and greenhouse gas emission data to the Ontario Ministry of Energy. Developed the Corporate Energy Conservation and Demand Management (CDM) Plan that outlines the City of London s commitment to corporate energy reductions for the next 5 years. Completed 9 projects accessing over $130,000 in CDM incentives (funds) in 2014 and have currently applied for 30 additional projects which could result in accessing an additional $1.0 million in CDM incentives (funds) in Renewable Energy Projects Proposed 2.4 MW of landfill gas, 800kW biomass at Greenway PCP. 5. Utilizing Leadership in Energy & Environmental One registered LEED building to date. Design (LEED) for New and Existing Buildings Currently one building pending registration and one new building design is under consideration. 6. Energy Procurement Electricity and natural gas procurement strategy covers 100% of accounts. 7. Creating a Culture of Conservation within Corporate Facilities and Services EP staff re- launched the energymatters program with a new It s Within Reach mascot and approach Is The City Mandated To Provide This Service? Can The Level Of Service Be Changed? 2

3 What is the current state of this service? The Ministry of Energy requires the City of London to report on corporate energy use and greenhouse gas emissions on an annual basis under Ontario Regulation 397/11 of the Green Energy Act. The Ministry of Energy also required the City of London to create and post its energy conservation and demand management (CDM) plan under Ontario Regulation 397/11. The CDM plan presents a 5 year program with the introduction of an energy reduction strategy. The corporate Energy matters culture of conservation program was rebranded in spring 2014 to the It s Within Reach program. This program continues to focus on behavioral measures and the opportunity to inform staff what their role can play towards energy efficiency and conservation in the workplace. Corporate Energy Management staff in Environmental Programs and Facilities completed 9 projects accessing over $130,000 in CDM incentives (funds) in 2014 from London Hydro and Union Gas. City Staff have also applied for 30 additional projects which could result in accessing an additional $1.0 million in CDM incentives (funds) in These 39 projects are also anticipated to provide additional cost avoidance of over $600,000/per year in annual operating dollars. Staff continue to assist multiple service areas in a number of renewable energy projects. Some examples include the renovations at Canada Games Aquatic Centre which is expected to decrease energy use by 41% and utility costs by about $88,000 in the first year, the Landfill gas power project awaiting OPA decision on new competitive procurement process and Greenway PCP waste heat recovery project awaiting TSSA decision on eliminating the need for stationary engineers. Major Corporate Energy reports are accessible on the Corporate Energy Management Program website. What has been done to manage the budget? The service area has been actively managing its budget by implementing management lead initiatives aimed at creating efficiencies, avoiding costs and generating revenue. These include the following: Efficiencies / Costs Avoided Previous 3 Years Since 2012, we have completed over 40 projects, accessing over $300,000 in CDM incentives (funds) from London Hydro and Union Gas. City Staff have also applied for 30 additional projects within this timeframe which could result in accessing an additional $1.1 million in CDM incentives (funds) when completed. 3

4 Since 2005, through procurement strategies, the City of London has avoided over $6 million in accumulated electricity costs verses the use of the Provincial Government s Regulated Price Plan (RPP). The corporate energy approach to energy efficiency improvements is to maximize existing budgets identified within the Asset renewal projects scope of work. What is the future direction of this service? Annual reporting on corporate energy use and greenhouse gas emissions is a regulated requirement. Electricity prices are predicted to increase a total of 45 percent over the next 10 years. In addition, working with our energy management consulting service, energy projections in commodity price forecasts for electricity and natural gas indicate rate change increases for the next five years. Corporate energy management activities will be critical for managing the impacts of these forecast price increases on City service delivery. The City of London CDM plan proposes 35 actions that will be used towards energy conservation activities. The plan details the City s proposed strategies to reduce energy and GHG emissions across corporate operations includes buildings, street lighting, wastewater facilities, wastewater treatment facilities, vehicles and equipment, and other municipal operations. Future results will be confirmed based on the results and level of participation and adoption by the Corporation. What future initiatives can be contained within the maintain existing service level budget? 2015 Budget Implement the proposed (actions) measures outlined for 2014/2015 in the Corporate CDM Plan in efforts to achieve our reduction targets under the regulated requirement by the Ministry of Energy. Continue to support and assist CDM projects that are eligible for utility CDM incentives. Continue to work with EES service areas to identify potential future CDM projects. Meet the mandatory requirement for reporting corporate energy & GHG s to the Ministry of Energy. Continue to promote the It s Within Reach program on culture of conservation activities Forecast Review CDM projects to confirm savings and environmental performance. Provide annual updates on Corporate Energy consumptions and costs associated. 4

5 Continue to implement the proposed (actions) measures outlined for 2016 to 2019 in the Corporate CDM Plan in efforts to achieve our reduction targets under the regulated requirement by the Ministry of Energy. Continue to review and support CDM projects that are eligible for utility CDM incentives. What service adjustments do you plan to make? 2015 Budget/ Forecast Service adjustments planned, however a number of areas will be examined and optimization implemented where possible as part of the CDM Plan. Key Performance Indicators How Much? 1. Number of CDM projects & Studies Completed Total corporate energy cost ($ millions) $17.7 $19.3 $20.4 $21.3 $22.8 $24.5 How Well? 3. Corporate energy use per capita (ekwh/person) Is Anyone Better Off? 4. Total corporate GHG emissions (tonnes) 26,300 24,500 22,700 20,900 19,100 17,300 5

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