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Water heater switch cuts costs
Region sees 28 new installations through Arctic Energy Alliance project

Shane Magee
Northern News Services
Published Thursday, January 29, 2015

LIIDLII KUE/FORT SIMPSON
After more than two years of work, a local energy use reduction project by the Arctic Energy Alliance and funded by the GNWT has wrapped up.

NNSL photo/graphic

Brian Boldt, left, an in-house electrician with pilot project contractor Taylor & Company and Lindsay Waugh, an electrical sub-contractor with Kiwi Electric, sort out installation details for the electronic damper control installed as part of the oil-fired hot water heater installations. - photos courtesy of Teresa Chilkowich

The alliance recruited several dozen homeowners in communities such as Fort Simpson, Fort Providence, Deline, Fort Good Hope and Norman Wells to convert from electric water heaters to fuel fired water heaters.

The final water tanks were installed last month.

John Carr, a senior technical specialist with the Arctic Energy Alliance in Yellowknife, said the fuel-fired models will consume less energy than generating power that is then transmitted to homes.

He said traditional electric water heaters, which can last between five and 10 years, often account for half of the power used in a home.

Already there is some data showing reduced power consumption, and therefore cheaper bills, for homeowners.

"It's been quite well received, people have been happy with it," said Teresa Chilkowich, the regional energy project coordinator for the Arctic Energy Alliance in Fort Simpson.

A teacher in the village who agreed to share his usage figures with the Drum saw what she described as "a significant" reduction in the amount of power used.

Before the new oil-fired water heater was installed, he used 750 kilowatt hours of electricity during December and January.

That had dropped to about 550 kilowatt hours in February, then 300 in March where the rate remained with some variation through the summer.

After a year, the power usage before and after installing the new water heaters will be analyzed by the alliance.

The new tanks using fuel do mean users see an increase on their fuel bill, though Chilkowich said it hasn't been a large increase.

Carr said when the project was initially in the works, the power rate structure would have meant the fuel-heated tanks would save users about $1,500 per year on their power bill.

However, the government changed the rate structure so that it now subsidizes more of the cost of power.

That dropped the potential yearly savings to between $225 and $400 per year.

However, the rate change means the GNWT, and therefore taxpayers, are still footing the bill for the subsidy.

Carr explained that despite the homeowner seeing a smaller reduction under the new structure, there are still savings for both the water heater owner and the GNWT as it burns less fuel.

The Department of Environment and Natural Resources funded the pilot project.

The only cost to the homeowner was $157.50 for an energy evaluation of their home by the alliance.

In Fort Providence, six oil-fired water heaters were installed a year ago while there have been 15 oil-fired and seven propane-fired water heaters installed in Fort Simpson.

The last of the village water heaters were installed in December of last year.

In Deline, 10 oil-heated tanks were installed last year.

There have been five oil-fired tanks installed each in Norman Wells and Fort Good Hope as well.

The pilot project faced delays reaching completion from shipping of the new tanks, to potential damage to the stored burners because of a warehouse fire and then scheduling issues with the contractors installing the tanks.

"There was great learning along the way. There was frustration because it was quite an involved project to co-ordinate," she said.

If it is done again, she expects it to run smoother because the kinks were figured out during the pilot.

Whether further conversions take place will depend on the GNWT budgeting for the program again said Chilkowich.

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