Ontario Power Generation´s green response program

Summary form only given as follows. Competition in the electricity market is driving the need for generation companies to lower cost, increase output and at the same time meet strict environmental obligations. Change is probably the only constant in the new market. To help respond to the new challenges, Ontario Power Generation worked with others to develop cost effective solutions to help maintain it´s leadership position in areas such as energy efficiency, emission trading, green energy, etc. For example, the emission credits from energy savings are providing greater flexibility in the operation of our fossil fleet that is worth millions of dollars because of the volatile energy prices. One of Ontario Power Generation´s successful programs was the internal energy savings program that saved a 2 billion kWh/yr.. worth over $80 million/yr. The program evolved from a corporate wide commitment to energy improvement. The principles were simple-to focus on improving energy efficiency on our side of the meter. In 1997, the benefits of the program were expanded to calculate the emission savings that resulted from fossil generation. The result was lower cost, increased production and an added bonus of improved environmental performance. Emission credits from energy savings are now registered and provide greater operating flexibility through the use of these emission credits. Emission credits from internal energy efficiency are conservatively estimated at several million dollars. The environmental credits are calculated from the reduced fossil production resulting from the energy efficiency savings. Ontario Power Generation ´retires´ 10% from each transaction to ensure a net environmental benefit. The 1994-2001 energy efficiency program targeted a 5% improvement in the energy used or lost in generating, transmitting or distributing energy-about 700 GWh. The target is increased to 3% annually from 2001 to 2006 and tied into the annual incentive plans. The success of the program won Canada´s Industry Tier One Energy Efficiency award. The eight-year energy efficiency program demonstrates how energy efficiency can help transform assets, increase productivity and reduce waste. From the experience gained and the need to continue to evolve and improve, a best practice g- uide was developed to help articulate and focus efforts towards continuous improvement that will lead to best practice.