4. Program Launch

The Entity, as Program Administrator, would be responsible for the development of a viable Business Plan, based on the Business Case, that included additional market research and risk assessment, prior to program launch.

4.1 Business Plan

To develop a strong business case, elements of a business plan were considered. The Entity would require reasonable resources to complete its due diligence, including supplemental market testing and program risk assessment, to finalize a R-DEER Business Plan for the approval of its Board of Directors.

Several key aspects of the R-DEER program will be further refined during the development of the final Business Plan including:

4.1.1 Program Set-Up Costs

The R-DEER Business Case estimated initial net start-up and working capital, defined as maximum negative cash flow, will be about $580K. In 2020, there are 6 months of organisation costs with no countervailing retrofit revenues. In 2021 the retrofit activity supports about half of the organisation costs, and by 2022 organisation costs are fully covered. In subsequent years, the Entity generates profit. A faster start up would reduce the net start-up working capital required.

6 Enbridge and Enwin have collected considerable current-market data from the residential sector through Conservation and Demand Management programs and energy retrofits which would be a valuable input to the final R-DEER Business Plan.