CEEPing along in New Westminster

It was love at first sight. The first time Yossarian saw the chaplain he fell madly in love with him

I felt the same way the first time I read Catch-22.Yossarian is easily my favourite character in fiction. Part of a bomber crew in Europe during the dying days of WW2, he was surrounded by absurdity, and coped with it by trying to out-absurd his surroundings, and always failing. In contrast, his friend Milo Minderbinder fully embraced the absurdity around him, and found creative ways to profit from it. Milo was the mess officer who bought eggs for 7 cents each, sold them for 5 cents each, and made a clean profit of 1.5 cents per. It was quite the scheme.

That is the trick that Norm Connolly, the Community Energy Manager for the New Westminster, might need to pull off. His task, and this is typical of all CEMs in Municipalities across BC, is to find ways to reduce energy use in the community. Not the energy used by the City itself, but by the residents and businesses of the city.

The problem in New Westminster being that unlike most cities in BC, we have our own electrical utility. The Electrical Utility buys power from BC Hydro at wholesale rates, and sells it to residents and businesses at retail rates (which are the same as retail rates BC Hydro charges residents and businesses). The difference between the two pays for the hardware that runs the system, and (in recent history) makes a little extra money for City coffers. So if Connolly is successful and reduces the amount of energy used by the community, the Utility will sell less power, and make less money, transferring less to City coffers. So why is the City so interested in reducing energy use at all?

There was a report at Council last week on the City’s Community Energy and Emissions Plan (“CEEP”). The CEEP was passed in 2011, and set out the pathway to New Westminster in 2030: a City with 20,000 more residents, but using no more electricity than we do today, and producing 15% less greenhouse gases. I’m not sure the GHG goal is aggressive enough (see my recent tirade on coal), but it is an achievable goal without significant changes in our lifestyle. So it is an easy sell for those interested in re-election.

Last week’s Council report covered a few of the initiatives that are going to arrive in the City in the next few years, to head us on the path towards that goal:

I will talk about item #3, the development of District Energy Utilities, in a later post (short version: it is a great idea, and others are doing it well, but the there are devils in details!). The other two are subjects that came up in a recent NWEP Energy Group discussion. I am glad to see that the City is taking this approach, and might even sign my house up for the program!

Item #1, the Multi-unit residential retrofits, is challenging. The challenge will be in convincing Strata Councils that the gains over the long-term will be worth the short-term hassle and investment in building improvements. The ability for the City to offer incentives, backed by BC Hydro or Fortis, and finding the right test-bed building will be vital for making this work.

One of the systemic issues that we have in the Lower Mainland of BC is that we live in a mild climate- not too hot in the summer, not to cold in the winter, and we have a (somewhat unfair) reputation for lacking bright sunlight. As a result, we build buildings with less insulation and more windows than in other parts of the world. Then, because electricity is plentiful and cheap, we have lined the walls of these inefficient buildings with electrical baseboard heaters, usually on the outside walls under a bank of windows, where they have to overcome the inefficient wall system before they provide any useful heat to the rest of the unit. Because of this, there are many “quick wins” to be found in these buildings, especially many of our older multi-family building stock. In New Westminster, with more than 75% of our residential units being in low- or high-rise multi-family dwellings, this part of the program will be where most of our CEEP gains can be found.

This doesn’t speak of the future growth in the City, however. If we are going to put 20,000 more people in the City, we are going to be increasing the proportion of multi-family dwellings, so we are going to create a whole new stock of buildings. The full CEEP contains some steps in this direction, talking about LEED standards and such, but I wonder if simply banning electric baseboard heaters would be sufficient to reach efficiency goals? I’m not ever sure the City can ban them…

Item #2 is the one that excites me the most, as a detached-home owner. Providing municipal incentives for energy efficient home re-fits is not yet common (most programs have previously been run by major utilities or by senior governments), but is becoming more so (not coincidently as senior governments become front offices for energy companies and the larger programs dry up). There are several cities in BC that have implemented these type of incentive programs, not coincidently in historic cities like Rossland and Nelson, where there is a large stock of older homes with significant heritage value.

We have done a few energy fixes in our 1940 house (including replacing all of our windows a couple of years ago), but have been slow to introduce some other obvious energy-savers. It appears our roof insulation is good, but that in our walls may be upgradable. We have a relatively efficient (if slightly old) gas furnace and gas-fired water heater. Solar water heaters (we have an expansive south-facing roof) and/or an instant-heater for water (as a friend of mine recently installed) seem like great ideas, but the impetus to install is low, even with the potential savings on my gas bill.

However, for people with electrical heat and water systems, the City is still stuck in that same old bind: If we reduce energy use in the City, does the City really gain? Can BC Hydro provide incentives to the City that will offset the “profit” the City currently makes selling electricity? If we continue to peg our rates to BC Hydro retail rates, incentives from Hydro seem the only way we can still pad the City coffers while reducing overall use.

There are good reasons fro BC Hydro to provide those incentives. Wholesale purchasers in BC pay less for electricity than any other customers. The City pays way less for electricity than BC Hydro pays for IPP power from Darth Coleman’s Run-of-the-River contracts. We also pay less than Alberta and California customers, who need to choose between buying cheap power from us or burning hydrocarbons to make their own. Even in BC, we burn hydrocarbons (at Burrard Thermal) only when we have an “emergency” supply issue, thanks to the 2010 Clean Energy Act.

Reducing electricity energy use in BC reduces the need for BC Hydro and others to burn hydrocarbons for electricity, allows Hydro to sell more power to lucrative export markets, and ultimately reduces the need to major expansion of the Hydroelectric System, saving more valley bottoms for other uses… so BC Hydro has incentive to incentivize the City to incentivize the community to reduce energy. Hence the need for our CEEP, and the need for the community of New Westminster to sign up for these programs – at every step of the way, we will be saving money and reducing our impact. We can profit from making less money, like Milo the Mayor did with eggs.

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