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Dale Struthers O&Y Enterprise Chair – BOMA Strategic Energy Committee

BOMA Toronto Building Owners and Managers Association OEB RP 2004 - 0020 Review of Further Efficiencies in the Electrical Distribution Sector February 19, 2004. Dale Struthers O&Y Enterprise Chair – BOMA Strategic Energy Committee. BOMA Member Profile.

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Dale Struthers O&Y Enterprise Chair – BOMA Strategic Energy Committee

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  1. BOMA TorontoBuilding Owners and ManagersAssociationOEB RP 2004 - 0020Review of Further Efficiencies in the Electrical Distribution SectorFebruary 19, 2004 Dale Struthers O&Y Enterprise Chair – BOMA Strategic Energy Committee

  2. BOMA Member Profile ‘Large’ Retail app. 45% of market; BOMA a large portion of this. Office, also Institutional, Retail Portfolios of Buildings, some 100 MW+ Professional Property Managers, often as Agents for Owners. Supporter of competitive markets, represented at IMO. Exposed to Wholesale Market Pricing; many have hedged. Customers of a broad cross section of Ontario LDC’s

  3. What Large Commercial Consumers want from LDC’s Reliability Fair Distribution Charges Accurate Billing Access to Billing / Meter data Meter Installations Fair and reasonable Service Policies Customer Service

  4. Reliability Concern over increasing frequency of distribution outages, equipment inspections ? preventive maintenance ? SCADA, Facilities Mapping capabilities ? work practices ? Need a formal record of outage events and causes, to allow benchmarking. Note that some LDC’s provide complete outage history on their web page.

  5. Some differences possibly due to rate structure discontinuities. • Also, considerable variation in Loss Factors.

  6. Billing Challenges Huge challenges in becoming Retailer Billing compliant; some LDC’s still not capable. May 2002 cutover; many LDC’s did not achieve May 1 cutover, resulting in $’000’s impact for some commercial customers. Problems with billing accuracy, late bills, rebate calculations, designated customer ID.

  7. Customer Billing and Meter Data (and NSLS) Essential for bill verification, commodity contract reconciliation, energy usage monitoring. LDC Responses Ranged from: Not available Available at a cost Available, but long delays (up to ½ year). Available by manual request, prompt attention Web enabled systems. LDC’s have generally progressed over time in this regard.

  8. Interval Meter Installation Requests mid sized accounts ( eg. 500kW) to avail themselves of preferred pricing / contract options. LDC Reponses ranged from: A) cannot comply B) Bureaucratic procedures, long delays, high costs C) Defined procedure, reasonable cost ($2500), acceptable timelines. Most (not all) LDC’s have progressed to ‘C’ over time.

  9. Service Conditions Range from: Detailed Conditions of Service, fair and reasonable Generic Conditions of Service, too much room for interpretation. ‘Customer hostile’ Conditions of Service suggesting abuse of monopoly privilege.

  10. BIGGER generally not better! While recognizing concept of ‘minimum efficient scale’ our experience has been that ‘best practices’ and lowest costs can often be found in the 30,000 customer LDC. The largest LDC’s have generally been most challenged to fulfill obligations of the new marketplace and have not demonstrated economies of scale.

  11. Are further efficiencies available? - YES How can they be achieved? Code Compliance, at a minimum. Performance Metrics (costs, reliability, customer service) Outsourcing of Functions where appropriate eg. meter shop, billing, other admin functions. Consolidation where justified, NOT for theoretical economies of scale. Requires: Progressive Management, Good Governance, Fiscal Prudence to embrace the challenges ahead ie. DSM, DR, Dist. Generation, Default Supply, Retail Choice

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