Contact Information Sarah SmithManager, Marketing & Energy EfficiencyTerasen Gas Inc.

Tel: 604-592-7528E-mail: sarah.smith2@terasengas.comwww.terasengas.com

ENERGY STAR® for New Construction

May 5, 2006

May 4, 2006

Presentation Outline

Introduction

Market Conditions in B.C.

New Construction Program

New Home Program

Conclusions

Agenda

May 4, 2006

Introduction

Terasen Gas Inc.

• wholly-owned subsidiary of Kinder Morgan

• 900,000 customers

• 48,000 km of pipeline

• 125 communities

May 4, 2006

Market Conditions

In British Columbia:

• Low Electric Prices: 6¢/kwh

• Electricity at margin > 6¢/kwh

• Hot housing market – low cost

As a result:

• Electric Hot Water Tanks are ~50% of market

• Electric Baseboards common in multi-family

• Electric Heat 70% of market on Vancouver Island

May 4, 2006

Residential Energy Use Profile

Source: Natural Resources Canada Website: 2003 B.C. Stats

Space Heating50%Hot Water

28%

Appliances16%

Lighting 5%

Cooling1%

May 4, 2006

ENERGY STAR New Construction

• Target: 3000 New Homes

• Offer: $500 for builders to install ENERGY STAR heating with natural gas hot water

(~covers incremental cost)

• Partners: MEMPR, NRCan

• Includes: PST Exemption

• End Date: Dec 31, 2006

May 4, 2006

Program Overview - Process

• Original program ran until December 31, 2005 to pre-qualify

• Builders / Developers then had 12 months after approval to install natural gas equipment

• Extended to Dec 31, 2006 to apply and install

May 4, 2006

ENERGY STAR New Construction

Marketing:• Direct promotion with

builders• Workshops and Training• Breakfast/Lunch info

sessions• Radio Ads• Literature

– Industry newsletter– Builder / Developer Toolkit– Information Sheets– Builder / developer-specific

website section

May 4, 2006

Observations about Builders:

• like to do things the same way each time (disadvantage & advantage)

• lean towards granite countertops over energy efficiency

• quick to follow trends of market

• prefer one simple application form

• are not interested in small incentive $

• are not interested in complex application process or short programs

• respond best to direct promotion

• prefer bundled offers

ENERGY STAR New Construction

May 4, 2006

Evolution of Program

Introducing the New Home Programfor Builders and Developers

$3000 for EGH80 and Appliances• promotes EGH80 homes• brings together many existing

incentives & offers• provides a single application form• gets attention of builders

• long term offer (with increased $ initially)

• provides specific incentive for appliances and lighting

May 4, 2006

Additional Success Factors

Keys to success

• Support initiatives with Education & Awareness

• Include training of industry• Leverage partner programs and funding• Provide consistent, longer-running

programs

Contact Information Sarah SmithManager, Marketing & Energy EfficiencyTerasen Gas Inc.

Tel: 604-592-7528E-mail: sarah.smith2@terasengas.comwww.terasengas.com

Questions?