Quick Facts
- Bronson conducted a QA review of Conservation and Demand Management (CDM) Program Administration in Ontario.
- The project scope encompassed all 73 Local Distribution Companies (LDCs) delivering electricity in the Province and 15 different CDM initiatives being administered through them.
- As part of the review process, Bronson made four separate appearances before the OPA/IESO Audit Committees to provide periodic updates and present key findings.
Project Description
Bronson developed the Quality Assurance (QA) framework for the project and subsequently implemented reviews of all 73 LDCs operating throughout the province of Ontario delivering CDM Programs on behalf of IESO. The team was able to provide assurance that the processes and controls being used in administration and delivery of CDM programs were compliant with key terms and conditions of relevant agreements with IESO.
Business Challenge
Ontario’s LDCs serve over four million homes, businesses and public institutions across the province. As well as providing their customers with electricity, the LDCs are responsible for delivering energy conservation programs and providing key information about managing electricity use. Between 2011 and 2014, the CDM Programs implemented by Ontario’s electricity distributors achieved verified energy savings of 6,553 GWh, or 109% of their original target. In order to achieve these savings, a total of $953.7M was spent on CDM Programs in Ontario during this period.
Funding for Ontario’s CDM programs is provided by IESO, but each LDC is responsible for developing their own energy conservation and management plans and tailoring them to the needs of their communities. IESO provides tools and support, as well as central CDM Program coordination and oversight.
In order to be eligible to receive CDM Program funding, each LDC enters into a contractual agreement with IESO defining their respective roles and responsibilities. The purpose of the QA reviews carried out by the Bronson Consulting team was to ensure that the administrative practices and procedures being utilized for each LDC were compliant with key terms and conditions outlined in these agreements.
Our Solution and Outcome
The QA review process included detailed analysis of CDM program activity for each LDC, followed by site visits, inspections and review of relevant contractual agreements and supporting documentation to verify processes used in CDM program delivery. Findings were reviewed in detail with LDC representatives prior to submission to IESO to ensure clarity and transparency in documented findings and observations. Summary findings were periodically presented to IESO Audit Committee for review and discussion, including analysis of trends and patterns observed across multiple LDCs.
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