Transmission Service Rate (TSR) incentives provide transmission customers with capital incentives to implement energy efficiency projects. The incentives are intended for customers that have exhausted all or most of their Tier 2 energy and require a stronger price signal than Tier 1 pricing to carry out energy efficiency projects.

Is this offer for you?

To qualify for transmission service rate incentives, energy efficiency projects must involve capital expenditures with a savings potential of greater than 300 MWh/yr. The chosen project needs to have an initial payback of greater than one year and a persistence of five years or more to qualify. All transmission service rate customers qualify regardless of position within their Customer Baseline Load (CBL).

How it works

Capital incentives will be provided at a rate of $0.0134/kWh average ($0.0134/kWh average = $0.02/kWh levelized) of energy saved to a maximum of $500,000 of the project capital spend or will be capped at a one-year payback.

The incentive funding does not provide a compound incentive on top of the price signal offered by stepped rates. Therefore, customers that take an incentive will have their Customer Baseline Load (CBL) reduced by the amount of the energy efficiency project.

BC Hydro will review customer applications and act as a resource providing expertise and funding to help implement the project. BC Hydro will also perform the measurement and verification for projects utilizing the incentive.

It pays to take action

• Reduction of the upfront capital requirements
• Operational savings via reduction in electricity bill
• Maintenance savings, production and/or reliability improvements can be realized due to equipment and system upgrades

An example

Energy usage and Customer Baseline Load (CBL) before the company undertakes an energy efficiency project

Project details

• Company implements a 3 GWh/yr energy efficiency project
• Effective Measure Life (EML) of project savings = 10 years
• Customer Baseline Load (CBL) and load are reduced by 3 GWh
• New Tier 1/Tier 2 split is set