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MAY 2007 teca News teca News • The newsletter of the Thermal Environmental Comfort Association • Volume 1 No. 4 President’s Message thermal environmental comfort association In This Issue President’s Message 1 TECA Trades Training 2 Membership List 5 Nelle’s Farewell 6 Training Schedules 9 Straight Talk on Customer Choice 10 BTU Metering 16 Are You Covered? 18 Meetings & Speakers 23 TECA’s 1st AGM Annual General Meeting of the Members Thursday June 7, 2007 Coquitlam, BC Members, please see back cover for details Well, there is certainly a lot happening in our industry association this spring, and I would like to bring you up to date on some of it. Our CHT program is nearing the final stages. Next it goes to the institutions for curriculum proposals and eventually the pilot program. It has taken our group a long time to get to this stage but we are within reach of our ultimate goal, a certified heating technician credential for BC’s residential heating trade. I would like to thank all of those involved for their time and energy to make this happen. I know that everyone has put in a lot of effort to make this happen. Without that commitment we would never have come this far. Other items of interest include CSA’s updated hydronic code, which has been adopted in the National Building Code. Although CSA’s code falls short of our own Hydronic Guidelines, it is a start and gives regulatory authorities a beginning for implementation of a minimum standard and for inspection of hydronic systems throughout Canada. CIPH has begun to offer our Hydronic System Design course through trade schools in Ontario. We are also excited about a web-based hydronic design course being developed in a joint effort of BCIT and CIPH. Our Hydronic Design Manual will be the text for this course as well. In June, our Ventilation Guidelines training joins our Forced Air Guidelines in the BCIT sheet metal apprentice training. Roger Hagan reports the students really want the residential training. On another note, I regret to announce that Nelle Maxey after over 18 years of service and dedication to our organizations will be retiring June 30th. She has given more than anyone could ask for and will be sorely missed. Please join me in wishing Nelle nothing but the best in her future endeavours. And in response to Nelle’s retirement I would like to announce the appointment of Kim Savage as our new Executive Director. Kim has represented us adeptly in work on the CHT program. Assisting her will be Diane Bilodeau. Diane will be maintaining our books and filling in some of Nelle’s financial and administrative duties. Please join me in welcoming these individuals to our organization. Anita Rathje remains as our Membership & Training Administrator. We look forward to working with all of you as we take the association into the future. — Pat Maguire President teca News 1 teca News MAY 2007 teca News Published 3 times a year by the Thermal Environmental Comfort Association of BC. ©TECA 2007 All rights reserved. Reprints by permission only. Editor and Production: Nelle Maxey Contributors to this issue include: Ken Fuhr, Frederick Lajeunesse, Patrick Maguire, Nelle Maxey, and Kim Savage. Copy and Advertising Deadlines Aug 15—Dec 15—April 15 Advertising Rates TECA Member Others 1/4 page ........................$150 .................... $200 1/2 page ........................$225 .................... $300 Full page.......................$450 .................... $600 Rate Sheets available on-line at www.teca.ca in the newsletter section or by contacting the office. teca 2006/07 First Directors Executive Pat Maguire, President .....IPEX Inc Terry Regier, VP .................ECCO Heating Products Steve Connelly, Secretary ...........Terasen Gas Roger Menard, Treasurer ...........MPH Supply Directors Scott Hayes....................... Smart Heat Systems David Hill......................... Eneready Products Scott Miller ...................... Integrity Mechancial Gary Milligan .................. Milligan & Company Tim Smith ....................... Smith & Sons Hydronic Paul Stevenson ................ EMCO Corporation Jerry Stroppa .................... Townline HVAC Leo Vaillancourt .............. Watts Industries Canada Ken Wright....................... Refrigerative Supply “volunteering for the industry” teca Staff Kim Savage.............Executive Director Anita Rathje............Membership & Training Administrator Diane Bilodeau.......Financial Administrator “waiting to serve you” TECA Trades Training…well on the way! Our Certified Heating Technician (CHT) and Certified GeoExchange Technician (CGT) designation and training program is well on its way to welcoming the first set of students for an October 2007 start of training classes. As previously reported, TECA and our co-applicant GeoExchange BC received word in early December, 2006, that the Industry Training Authority (ITA) approved the CHT and CGT training program and certification. Over the last few months, TECA has been working closely with the Residential Construction Industry Training Organization (RCITO) and the Industry Training Authority to develop an implementation plan for the training program. Currently, the main priorities are to: 1. Develop a system for both new students and existing workers to obtain certification. 2. Secure the delivering institution. 3. Develop learning materials. In the last three months, the final program outlines for all three training programs – Forced Air, Hydronics and Geothermal – have been completed. The program outline is the framework for the entire training initiative and prescribes what a technician must know to earn his credential. The completion of this work represents hundreds of volunteer hours donated by industry experts including TECA Board members and TECA membership. This ensures that the training will be relevant, practical and comprehensive. The BC Safety Authority also has given approval in principle for our Certified Heating Technician credential. This will allow technicians to use their CHT training as a satisfactory prerequisite to take the Gasfitter B course and exam. Certified Heating Technicians will therefore be able to earn their Gasfitter B ticket – a requirement for a fully credentialed and apprenticed CHT. “Momentum is building for the CHT. It’s obvious to me that our industry is excited about the program. The TECA office is receiving many calls regarding the program and most want know how they can be involved. They want to enrol and/or earn their designation through the course or challenge process,” comments TECA President, Patrick Maguire. The association is excited about the fall activities, working with our membership to recruit trainees and course challengers. A key factor of CHT’s success will be TECA membership backing and involvement. In the next couple of months, TECA will be contacting its membership with information on how to challenge the CHT material to earn the designation. “TECA needs it members to not only support the new training program and credential, but also be involved. Take or challenge the course and get certified,” explains Maguire. “Our existing contractors and suppliers earning their designation will be vital to establish this program in BC and give it the momentum and credibility it needs.” The Certified Heating Technician and Certified Geothermal Technician programs will encompass all aspects of the heating and cooling industry, educating and offering designations for either forced air, hydronics or geothermal trades-people. Students and challengers will select their “stream” and earn their credential in the area of interest. All students will be required to take inter-disciplinary courses to develop a basic understanding of the other related fields. Both Level 1 & 2 courses will take a student approximately 4 teca News 2 MAY 2007 teca News “ It’s obvious to me our industry is excited about the program. ” Contact teca Web site: www.teca.ca — Pat Maguire, President Training & Membership, Anita Phone: BC Toll Free 1-888-577-3818 Fax: 250 577-3137 months of classroom time to complete with another 1 ½ years of on-the-job training to email: [email protected] earn the credential. Mail: PO Box 366, As a TECA member, it is important to understand the format and content of the Certified Pritchard, BC V0E 2P0 Heating Technician program. This program builds on the long-standing priority TECA and its predecessors HVCI and RHWHA have always placed on providing quality training for the CHT Program, Kim Phone: 604 596-0595 residential heating trades in BC. Fax: 604 591-8030 We encourage you to review the information on the next page. We hope that you and email: [email protected] your employees will earn this certification either through course challenge or, if necessary, Other Inquiries by taking the training. Until June 30th you can reach Nelle at It is expected that by September of 2007, the Prior Learning Assessment & Recognition Phone: 1-888-414-0444 or PLAR system will be in place. PLAR challengers will be able to earn their designation Fax: 1-866-414-0100 through demonstrated work experience and written exam. TECA plans to offer challenge email: offi[email protected] exams around the province this coming fall and winter to ensure that as many existing workers as possible can earn their designation. TECA’s goal is to offer the pilot program New Lower Mainland office! courses in October 2007. Powell River office closes June 30th. Next Steps for CHT Program: May to August 07 There is still a lot of work to be done before students can take the program or challengers can earn their designation. Below are the major activities that will take place between now and August as TECA moves closer to implementation. 1. Define operational procedures for industry certification, management of training delivery, registration of trainees, other administrative activities 2. Draft learning resources, exam bank and practical assessment 3. Select training provider 4. Market program and recruit trainees and employers How YOU can be involved Check the website in June for details. All teca Training is uality ����� TM Earn your designation. This is the most important contribution you can make. We need our membership to support this initiative by earning their credential and building momentum for the program. This is vital to our success. Stay informed TECA will regularly provide information to its membership regarding the CHT program through mailers, faxes and presentations. Review the material. Questions? Contact Kim Savage at 604-596-0595 or [email protected]. We offer FORCED AIR, HYDRONIC & VENTILATION training courses, manuals & software. See the web site: teca.ca or contact Anita to put your name on a waiting list for training in your area. Last courses of the season! Schedules on page 9 —by Kim Savage, Board Liaison teca News 3 teca News MAY 2007 CHT & CGT Program Outline: Where do you fit in the scheme? Level 1 Common to all streams In classroom 6 weeks (180 hours) 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Residential Heating Industry Trades Math Workplace Safety Safe Use and Care of Tools Plan Reading Perform Basic Drafting Basics of Framing PLAR Challenge 1.8 Insulation, Vapour Barriers and Building Envelope 1.9 Fundamentals of Heat Loss & Heat Gain 1.10 Basics of Electrical & Wiring 1.11 Ventilation 1.12 Job Skills & Career Options Competency Exam Level 2 Specialization Streams FORCED AIR HYDRONICS GEOEXCHANGE 8 weeks (240 hours) 9 weeks (270 hours) 8 weeks (240 hours) 2. 1 2. 2 2. 3 2. 4 2. 5 2. 6 2. 7 2. 8 Heat Loss/Heat Gain Equipment Heating System Design Ventilation Installation and Sheet Metal System Controls Servicing & Troubleshooting Complete Interdisciplinary Technical Training 2. 9 Class B Gas Fitter Certificate 2. 1 2. 2 2. 3 2. 4 2. 5 2. 6 2. 7 Hydronic System Design Heat Recovery Ventilator (HRV) Installation Practices Controls Cross Connection Control Servicing and Troubleshooting Complete Interdisciplinary Technical Training 2. 8 Class B Gas Fitter Certificate PLAR Challenge 2. 1 Familiarity with the Geothermal Aspect of the Industry 2. 2 Geothermal Heat Pump Systems 2. 3 Field Analysis and Geology 2. 4 System Design 2. 5 Controls Design 2. 6 Piping and Ducting Design 2. 7 System Installation 2. 8 System Commissioning 2. 9 Servicing and Troubleshooting 2. 10 Complete Interdisciplinary Technical Training Competency Exam On the Job Training 1.5 years (75 weeks or 3000 hours) CHT Certified Heating Technician teca News 4 CGT Certified GeoExchange Technician MAY 2007 teca News 300 TECA MEMBERS Kootenays Abacus Htg, Ventilation & A/C Arrow Lakes Mechanical Systems Comfort Zone District of Kootenay Boundary F. Paulson & Sons Hercules Heating & Plumbing Huscroft HVAC Kin-Aire Refrigeration KlimaBuild Construction Kooltech Refrigeration Kootenay Furnace L & M Plumbing & Heating Nakusp Heating & Plumbing Peltzer’s Precision Heating Riverside Heating & A/C Snowball Ventures Speedy Appliance Service Stratton Plumbing & Heating Venture Mechanical Systems WD Sheetmetal Lower Mainland A-Western Plumbing & Heating Advance Installations Airco Heating & Cooling Airstream Heating & A/C Al Stouffer Enterprises Al’s Home Comfort Heating Allied Engineering Alouette Heating & Gas Alpha Home Energy Ames Metal Fabricators Andrew Sheret Aquaman Plumbing Aquarius Metal Fabricators Armaur Plumbing Astro Plumbing Babcock Gas Services Barclay Sales Bargens Heating Bayridge Heating & A/C BC Fireplace Service BCIT, Sheetmetal Dept Benko Mechanical Big Valley Heating & Sheet Mtl Blueridge Engineering Bobin Mechanical Services Bush Sales Century 21 Gas & Heating Chao Mechanical Services Chimo Furnace Service City of Burnaby, Bldg Dept City of Coquitlam City of Port Coquitlam City of Vancouver CJ Heating Climate Masters Htg & Cooling CMJ Heating Coldtech Refrigeration Coleman Heating Columbia Insurance Services Comfort Plus Heating & A/C Con-Cur West Marketing Corona Plumbing & Heating Cozy Home Heating Creative Consulting Cronkhite Supply Dan D. Heating Dickinson Fabricating & Sheet Mtl E.G. Heating Earth GeoEnergy Ecco Heating Products EMCO Ltd (2) Emerald Green Bldg Services Ener-Save Mechanical Eneready Products (2) Enertech Heating Enertech Heating Centre Equipco ExchangEnergy Fast Frost Enterprises Five Star Sheet Metal Fraser Valley Htg G & S Heating G.P. Peterson & Son Heating Gandy Installations Gauvin 2000 Construction Geo-Tech Geothermal Geoforce Energy Solutions Geopan Heating Gill Plumbing & Htg Haakon Industries Heatlink Group Housesmart Heating & A/C Hugh Milligan & Co IBC Technologies Inc Integrity Inspection Integrity Mechanical Ipex Inc ITT Fluid Products Canada Jade West Engineering Jassey Plumbing & Heating John Mulder Heating Jomaa’s Ventilation JSA Sales Inc Julian Mechanical K & R Mechanical Kirkland Metal Shop Klassen Heating Knaps Mechanical Koolen Consultants & Services Lambert Plumbing & Heating Latek Gas Fitting Lazar Plumbing & Heating Lennox Canada Lew Plumbing & Heating Lloyd Paskall Maguire Enterprises Mannix Heating as of April 15, 2007 Mayfair Mechanical Meer Mechanical Ltd. Mega-Tech Custom Sheet Metal Moore & Russell Heating Mount Seymour Plmbg & Htg MPH Supply Ltd Municipality of Whistler National Energy Equipment (2) Neels Heating Nickel Heating & Ventilation Nicolson Heating & Metal Works Nor Dyne Mechanical North Shore Plumbing & Heating North Star Mechanical Northwind Heating P&K Mechanical Pacific Breeze Heating Pacific Gas Parkinson’s Heating Partridge Heating Pemberton Heating & Sheet Mtl Pipeline Mechanical Platinum Mechanical Systems R & B Plumbing & Heating RAD Hot Water Mechanical Rainbow Mechanical Reach Enterprises Rebco & Sons Refrigerative Supply Ltd Reid Brothers Plmbg & Htg RSVP Design Services Saxon Mechanical Schulz Sheet Metal Seymour Installations Sino Plumbing & Heating Skyline Plumbing & Gasfitting Smith & Son Hydronics Soft Energy Solutions Solace Energy Home Heating Stenning Mechanical Solutions Superior Gas Installations Superstar Electrical, Plmbg & Htg TAG Plumbing & Heating Terasen Gas (4) ThermoFlo Technologies Top Group Industries Topline Sheetmetal & Fabrication Townline HVAC & Geothermal Sys Township of Langley Ultra Hydronic Plumbing & Htg Universal Heating Veltex Heating Viega LLC Viessmann Mfg West-Kam Heating & AC Westmark Mech Contractors WISA Development Projects Wolseley Mechanical Group YPP Mechanical Zappone Plumbing & Htg Northern Region 101 Industries Ltd City of Williams Lake Comprehensive Design Review D. Bauer Mechanical Marc Carrier & Sons Htg & Plmbg Markey Mechanical Mayvin Gas & Heat Ltd North Central Plumbing & Htg Plumbmaster Mechanical P&H Shaper Sheet Metal Okanagan Acadian Mechanical Services Ace Plumbing & Airtec Heating Almar Mechanical Andrew Sheret ASA Heating & A/C Aspen Heating & Sheet Metal B & J Gas Works B. Turner Mechanical Blair Mechanical Border Mechanical Services Canadian Comfort Air CDC Contracting Cedar Creek Mechanical Central Heating & Cooling City of Kelowna City of Salmon Arm Combined Mech. Contractors Comfort Zone Htg & A/C Conematic Heating Systems Coppertec Refrigeration Custom Metal & Heating DHL Mechanical E.L. Fox & Sons Plumbing & Htg Ecco Heating Products Fehling’s Sheet Metal Flashpoint Climate Solutions G.L.E. Heating & A/C Geo Solutions Geotility Corp Hallworth’s Plumbing J. Wright Plumbing & Heating Lakeview Geotech Leask & Company Meadowlark Refrig, Htg & A/C Optimum Air P.J. Mechanical Systems Paradise Climate Controls Premium Comfort Heating & A/C Quality Air Care R.A. Buzza Heating & A/C Rapid Cool Htg & Refrigeration Roto-Rooters Plumbers RPR Heating & A/C Sarsons Mechanical Services Smart Choice Plumbing & Htg Smith Plumbing & Heating South Okanagan Metal Products Sun Valley HVAC Ty French Contracting Sunshine Coast COEX Heating & Sheet Metal John Sadler Mechanical Sechelt Heating & Sheet Metal Sunshine Coast Reg Dist Thomas Heating & Electric Vancouver Island ACRO Radiant Floor Heating ALDI Services Alpine Gas Ark Solar Products Bennett Sheet Metal Capital Regional District Carson Mechanical Central Island Htg & Refrg City of Parksville City of Victoria City Service Plumbing Clark Temperature Controls Coastal Heating & Ventilation Crawford Heating & Sheet Metal Custom Geo Exchange Systems Econo Heating & A/C Elliott Plumbing EMCO Corporation Gannon Heating Glacier Heating & Plumbing Heatwave Plumbing & Heating Heavy Metal Mechanical Island Energy JB Sheet Metal Just Gas Magnum Plumbing & Heating Majestic Mechanical Marshall Plumbing Merkel’s Plumbing & Heating Millstone Heating & Sheet Metal Nutech Brands Ocean Plumbing and Heating Outer Limits Sheet Metal Pacific Plumbing & Heating Pro Star Mechanical Tech. Quality Stoves Reg Dist of Comox Strathcona Salt Spring Sheet Metal Sand & Son Sheet Metal Scott Technical Service Sebco Gas Target Plumbing & Heating Thermo Tec Mechanical Torry & Sons Plmbg & Heating Town of Sidney Tritech Heating and Fireplace West Bay Mechanical Westisle Mechanical Services Outside BC Georgian College, Ontario Yukon Government teca thermal environmental comfort association Join the Crowd! Membership forms on-line www.teca.ca teca News 5 teca News MAY 2007 Nelle’s Farewell…rhyme and reason For me, it began in ‘89 In Vancouver, I met an old friend of mine. One thing led to another, Soon I was working for her brother, Producing a manual for the heating trade A Ventilation Requirement Training Crusade. When technology changes and few really care If the guys in the field haven’t been made aware Of the way it all works, how the public will fare, When no one can read the building code With its two-page sentences in double-negative mode, The chance of installing safe and efficient ware Is zip, zero, none…It’s just public beware! 1988 and 1989 Com & s c oni deline r d Hy Gui TM for nd na esig D So this was a gig I could get behind, Minimum standards and education were fine. The folks that I worked with on Ventilation BC (Many now retired, as I soon will be) Were Apsouris and Myers, Wood, Harwood and Hill, Don’t forget, Kerr & Lang (behind the throne still). So we wrote the Vent manual and trained the trades And revised as needed in the code-change parade. Government, Inspectors and all of the trade Working in concert to change the ways The years ‘90 to ‘93 flew by in thrice. But “Simple, Inspectable, At Reasonable Price” Was causing a stir that would soon be not nice! HRAI said Vent BC must Cease and Desist. But the fellows above, bent to resist And closed their chapter. HVCI came to exist. Then the east sued the west, to retire the book. They wanted national vent training, by hook or by crook. So we marched off to court (our lawyer in took) 1st Directors Myers, Hill, Harwood, Vaillancourt and me. I was the manager now, so fair game you see. Two directors loaned money, so we could have our say. And we won, hands down, on the very second day. ‘94 was a year I’ll never forget! The seeds of the present were planted the day Leo left HVCI to form RHWHA. 1st Directors by name (you’ll recognize quite a few) Were Allenby, Duff and Ferguson too, Ihmels and Harwood, Herwig and Tam, Riggs and Vaillancourt. It was grand slam. Ins and r ate ot W H tion ina mb Co fH o ion at tall r ate ot W the & ce Spa bo uality s em yst gS atin He y gS atin He ms ste ����� TM Ventilation Guidelines A Simplified Guide to Section 9.32—Ventilation tion Edi 5 7th ry 200 ua ting Jan rin of the 2006 British Columbia Building Code with Mechanical Ventilation Checklists P 7 3rd il 200 Apr Third Edition March 2007 a tec the of ittee ciation omm so n C ort As ca.ca atio f . te ot al H enti A). esid e R (TEC C of th on on of B ti a ti m es alga ssocia e A elin e am y th uid n th dustry web In ed b upo oG 006 ooling duc omb a y2 Pro &C Ma and C ca.c ic in g te n d n o e ti ce@ ydr form Ventila offi AH was g, ail: TEC tion eatin em ocia the H thermal Ass d fort A) an environmental Com (TEC l comfort association enta f BC nm o viro tion Produced by the l En ssocia a rm A The ting Ventilation Technical Committee of the The r Hea te Thermal Environmental Comfort Association of British 7 Wa 200 A EC ©T al ental tion a rm the ironm ssoci a env fort com c Edu n nme o nvir lE rma The om www tal C site: © 2006 TECA March 07 3rd Edition teca Columbia teca Ventilation Guidelines These fellows had worked the 7 previous years To produce and promote their Hydronic Guide To BC’s Inspector’ in towns far and wide. Then they asked me to manage their office too. Two-headed Nelle became industry glue! Meanwhile back in my office, HVCI had begun A minimum standard for forced air—What fun! BC Gas jumped on board and funded the work, Q1st hit the streets ,and my work went berserk. The hydronics boys were waiting in line, In ‘95 we published System Design. ‘96 saw contractors from both sides of the street, Signing up for all of the new training seats. My databases grew at an astounding rate, Training and memberships, courses galore, Tech meetings, revisions, could I do any more? Organize everything, handle the bucks, pay all the bills, Smile nice, do your homework and fix every ill! There’s budgets and contracts, a zillion reports, Then another idea, let’s publish our views. First HEAT BC then RHWHA News. And in my spare time, since I had the abilities, Just run over to the BCUC, Protect industry from big, bad utilities! But it didn’t stop there, no, I had the phones too. teca News 6 1 MAY 2007 teca News ™ ines Guidel r i A d Force eat Gain Directors (there were now 23!), Instructors (don’t forget BCIT), Members, Inspectors and the Public too, They all had my number, ‘cause I knew what to do. tion oss/H Heat L-by-Room Calcula Room election liancemSps and A/C Coils AppH eat Pu Sizing es ayout & stemPrLessure Sizing Tabl y S ct u w D uding Lo incl What a great bonus ! To talk to the members, The guys on the ground who made me remember They carried the onus of those safe installations and Wanted all contractors to respect the vocation! Yes, members hung in despite the frustration and Deserve forever our great admiration. 6 ion 200 4th Edit07 Printing ��� ������������ � ����������������� � April 2007 Hyd roni TM Des c Sy ign AG uide Man stems to th ual Education Committee Hot e Wa Desig Thermal Environmental Comfort Association ( teca thermal environmental comfort association Produced by the ter H n eati & Insta ng S l Nat yste lation o iona ms f 1st l Edi Prin tion t i ng Ja nua ry 2 0 07 of the Formerly RHWHA BC) 2006 and 2007 uality ����� TM 1-1/ Edu cati 8 by tec a 3/4 P the rm unc roduce al env il w com ironm ithin d for th fort enta e Ca the on C ass l C ocia n a a omm nad tion ian dian H ittee Insti y of th tute dronic by th e Th s o f C Plum e oun erm b al E ing cil nvir and onm Hea ting enta ) l (a c o Com fort A ssoc iatio Basics of Airflow Fluid Dynamics: Air Flow in Duct Systems n 1st Printing April 2007 teca thermal environmental comfort association The Thermal Environmental Comfort Association www.teca.ca JANUARY 2007 teca ���� cht ! d e v pro ap � 13th Printing the bia of the ed by Colum Produc l Committee British nica 7 ion of Air Tech fort Associat r, BC V8A 4T Forced m ve Ri Co l l ta wel ronmen is Street, Po al Envi Therm ffice: 6004 Lo O �������������������������������������������������������������������������������������� ������������������������� � 4th Edition 1997 al therm l menta environ association comfort AT HE BC So that brings us now to the wonderful day When Nelle’s out to pasture, HIP, HIP, HOORAY! Kim and Anita will pick up the sword, and with Diane, Who is coming on board, All will be well, teca ���� Because as they say: “Success breeds Success.” It’s Q1st all the way! ������������������� A Guide to the Design & Installation of Hot Water Heating Systems teca If you’ve looked in vain for your name in this litany, I must apologize, but you’re all just too many, Legions of you, who did and DO give a damn, Who have an ethical backbone and can see through a sham. It really is you who led to our success. Heating contractors forever. Hat’s off! You’re the best! —Nelle Hydronic Systems Design Manual Then fate came a knocking in ‘02 and ‘03, The wet heads and air heads joined hands. Can this BE? Yes, both of the groups were determined to see A program of training for all of the trade— Residential Heating to see a credentialed grade. Two more years of work and then in ‘05, ITA turns us down over some shuck and jive. Never mind, it’s spilt milk now . We’re out of the gate. The formula was simple: Just Amalgamate! Plus hire more staff and give old Nelle a break! In This Issue ������������������ TM April 20 ‘96 saw me move so my life would slow down. And it did, for a while, in a quiet coastal town. But momentum was building. Our training was hot. Trade schools liked all of our manuals a lot. ‘97, ‘98, ’99 to ‘02 saw all of us working, a busy crew. SAIT in Alberta, CSA at the door. CIPH, CHC and even more, BCIT’s Hydronics Tech Program came to the fore. thermal environmental comfort association 1994 and 1995 es, Furnac After months of anticipation, the Certified Heating Technician designation and training program is to become a reality this year. In early December 2006, TECA and its co-applicant GeoExchange BC received word the provincial Industry Training Authority had approved the Certified Heating Technician (CHT) training program and certification. “This new program and provincially recognized designation for our industry will not only improve the quality, safety and design of residential heating and cooling systems, but it will also give much needed credibility to our industry and its hard-working professionals. Moreover, it will address the critical skills shortage teca News 7 One final aside, since I can’t let it be! Remember the Red Hats from 1996, When the utilities were up to their old tricks? Dust’em off, you may need them, If you still want to see “Independent Contractors Heat BC!” teca News MAY 2007 Ventilation Certification Updates—The Building Code has Changed! If your name is on the list below, you have not updated your 1998 Ventilation Certification. It has expired. You may update your number by ordering a new manual and 2006 certification stamp. Please contact Anita at the Okanagan office for details: Call 1-888-577-3818 or email [email protected] You have until the end of 2007 to update. As of January 1st, 2008, anyone with an expired number will be required to re-take the Ventilation Guidelines course to obtain current certification. See www.teca.ca for information on BC Building Code and Ventilation Guidelines manual changes. You must have 2006 Certification to download the latest Mechanical Ventilation Checklists. Is your name on this list? Renew your Ventilation Certification before year’s end. Northern Region (11) Claude Chaput Rick Chester Bonnie Griffith Ray Hale James Miedema Rui Miranda Nick Mulder Tim O’Sullivan Mallory Smith Marvin Friesen, Sr. Ken Vincent Island (50) Lyle P. Adams Roger Allen Wilson Atkins Hugh Barton Claude Beaudoin Lauren Beddington Chris Bohmer Keith Bomback Brian Bondy Alain Brunet Stephen N. Butt Grant Cromer Graeme Cross James A. Day Ken Dunbar Brian Duncan Lonny Ferguson Herman Franke Brian Gannon Lyle Gill Garnet Harris Rick Heinz Allen Henderson Max Hoedeman Dan Holland John Kennedy Greg Kerr Joe LeRoy Dan Lonsdalen Garnet Lovasz Nicolas Margetts Ted Maxwell Rick McCarthy Doug McPherson Mark Medd Jim Meeres Don Merkel Paul Miller Don Owens Duane Price Carl Reinfelder Dan Reynolds Bruce Richards Fred Robinson Brent Rosa Eli Ross Michael Taylor Kevin Watts Robert Wilson-Storey Ralph Woodcock Lower Mainland (201) Saiyad Irshad Ali Brian Allk Sukhraj Vir S. Atwal Bahadur Aulakh Colin Aves Curtis Baker Mike Beeby Len Bertelsen Manjit Singh Biring Peter Borghardt Patrick Boylan James Broadhead Steve Brown Ernie Bruhn Cyril Bungay Nick Burgess Reinhold Busenius Ed Butler Mandy Chan Quan Chan Danny Cheung Lisa Chong Jasvir Singh Chot Philip Cianchi Jim Clark William Clayton Louis Cormier Richard Cowie Steve Cyr Sean Czepak Sodhi Dadral Kendall Davidson Bill Davis Ernie DeMarco Ron DePatie Gurinderpal K. Dhillon Kuljit Dhillon Rodjer Dinesen Bruce Douglas Peter Dragvik Doug Duffield Dave Duffill Bernie Eberhardt Ryan Elliott Lorenzo Filippelli Wayne Findlay Kyle Fitzgerald Mike Flatt Wayne Fleet John Fong Dan Freeman Alex Fritz Eddie Fu Gurdial S. Gadey Kulwant S. Gandham Chuck Gandy Brian Geerts Jaspal Ghuman Dan Giesen David Gill L. De Graaff Adam Grainger Baljit S. Grewal Lucas Hagen Kevin Haine Michael Hansen Daljit Singh Hayer Scott Hayes Teresa Higo Robert Hinsche Wilson Ho Dave Hoare Ken Hollier Andy Hubbs Donald Hue Tim Hutchison Nikolai Ilachtchouk Allen Ip Les Jaeb Roger St. Jean Russ Johnson Barry Johnston Hardeep Kambo Ramendra Kapoor Graham Kenmuir Balwinder Khind Kolja Kieselbach Ken Kinney Wally Kiselbach Ed Lane Dave Langfield Scott Langford Scott Langley Mike van Leeuwen David MacPhail Bill MacPherson Patrick Maguire Ryan Maillet Alan Yui Kwong Mak Louie Maragliano Rob Marchiori Paul Martin Renato Mazzarolo Bill McBeth Brian McDougall Brian McDowell Glen McManus Barrie McRae Steve Melady Timothy G. Minogue Regulus R. Miranda Dave Mooker John Moore Ricardo Moromisato Dale Mueller Hazura Nagra Rod Nash Rob Naylor Wilmer Neufeld Ray Newell Hooi Chong Ng Michael Nicol Neil Niessen Chris Norman-Martin Kurt Nystrom Steve Oldroyd Andrew Orfankos David Owens Bhupinder S. Pabla Neil Parry Jamie Perry Mike Perry Terry Phuong Chris Pim Rob Pope Scott Postlethwaite Richard Powshuk Rashpal S. Purewal Gordon Rae Kamaljit S. Rai Harbhajan S. Ranauta Narinder S. Rehallu Aaron Reid Stephen Reid Reg Richardson Bob Riggs Graham Roberts Doug Robinson David Rogvaldson Sven Rohde Steven Roper Craig Rush Kevin Rush Harjinder Sarana Heinz Sawatzky Henry Sawatzky teca News 8 Peter Schalkx Rob Schwab Joan Scott Ken Seifred Ravinder S. Sekhon Larry Sigurdson Amanpreet Singh Davinder Singh Derek Smart Murray G. Smith Manjit Sohi Jaspal Sond Wayne Stackhouse James Sternig Vincent Stone Andrew Stringer Ram Tirath Tak Nirmal Takhar Satpal Takhar Zhihui Tang Gurpreet S. Tatla Hardyal S. Thind Mark Thoreson Edward Toews Van Tran Richard Tremaine John Trousil Terry Tummon Paul Vaillancourt Marty Vanderhelm Glenn Walsh James Weldon Roger Wells Keith White Alex Williams Andrew Wilson Tony Wilson Charles Wirrell Andy Wolff Ted Wong Ron Wood Mark Wozer June W.Y. Yu Oto Zverina Sunshine Coast (11) Darcy Clarke Russell Gilfillan John E. Jory Desmond D. Lambkin Patrick Parker Darren Quist Eric Rekers Lionel Speck Jeremiah Thomas Allan Wallace Rick Wildeman Okanagan(43) Alton Belsher Gray Biggins Byng Blackmore R. A. Buzza Trevor Farlette Harry Fehling Brian Forth Maurice Frechette Ty French Carl Froese Peter Gilchrist Jack R. Gillick Jacobus Goossen Horst Grams Bob Halsall Wayne Henderson David Ireland Trevor Kaidannek Al Levinski Dave Levinski Randy Lutz Rob McCormick Linda McDonough Sean McIntyre Robert McKenzie Rainbow Monds Dan Morris Dean Neilsen Kirk Neilsen Mark Race Dave Ramey Ken Reichert Jim Robinson Gregory Robson Rob Sawatzky Lyle Sparrow Darren Van Sprang Sean Van Steinburg Dan Tarves Gerald G Thomson Don Tulloch Andrew Williams Ken Wright Kootenay (6) Garnet Bignell Russell Esson Lance Ogden Dale Seymour Robert Silva James C. Waldie MAY 2007 teca News teca ualityttraining ����� TM TECA’s training season runs from September to June. Courses are scheduled when enough people express interest and may be cancelled due to lack of enrollment. If you would like to attend training in your area and do not see a course advertised, call us at 1-888-577-3818 or email [email protected]. to be put on our notification list. Visit our website at www.teca.ca for course information, schedules and registration forms. Encourage your local inspection authorities to request a copy of our latest training schedule and to require training for residential heating contractors. Last courses of the season…Register Now! Forced Air Guidelines—Parksville 3 day intensive, 8am–6pm May 4, 5 and 6 Friday to Sunday Hydronic System Design at BCIT—Burnaby 5 day intensive, 7:30am–3:30pm June 18–22 Monday to Friday Contact BCIT: Paula Rossetti, Piping Dept 604-412-7564 or [email protected] Forced Air Guidelines—Surrey 6 evenings, 6pm–10pm May 7, 10, 14, 17, 24, and 28 Mondays & Thursdays Ventilation Guidelines—Kamloops 1-day intensive, 8am–5pm May 12, Saturday (Skipping Victoria Day Monday) Ventilation Guidelines—Kelowna 1-day intensive, 8am–5pm May 25, Friday Heat Pump Upgrade—Kelowna 2 evenings, 6pm–10pm May 14 and 17 Monday & Thursday Current FA# required for registration in HP Upgrade Ventilation Guidelines—Burnaby 1-day intensive, 8am–5pm May 26, Saturday At Trane, everyone breathes easier. Career opportunity available Inside / Outside Sales Fax 604.942.3830 www.trane.com teca News 9 teca News MAY 2007 Straight Talk on Customer Choice —by Ken Fuhr & Nelle Maxey Ken Fuhr, of Avista Energy, was the featured speaker at our April member meeting. He offered information to help interpret the new residential gas marketer program that hit the streets on May 1st. Ken set the record straight and offered sound advice. Most of the information in the article below is from his presentation and additional information Ken sent to TECA. Nelle added comments and information, including all the quotes from the NRCan Annual Gas Review.1 NATURAL GAS PRICES ARE VOLATILE AND DIFFICULT TO PREDICT Ken began his discussion with a primer on natural gas (NG) prices. Ever since our National Energy Board deregulated Canadian energy markets back in the 80’s, our NG prices are set in New York and discounted back to various price hubs. Our hub in BC is Sumas. SUMAS $8.15 Can +27% 1 Source: NRCan Canadian Natural Gas Review of 20051 UP & DOWN: 5 FACTORS THAT AFFECT GAS PRICES 1) Weather—Gas Demand Peaks in winter, falls in spring and rises as the summer A/C season arrives. Hurricane activity can disrupt Gulf of Mexico Output. 2) Price of Oil—Increase to Oil of $1/barrel means 20¢ NG increase. Historical ratio is approximately: 5:1. Industrial sector has the ability to switch between natural gas and oil. 3) Economy—Strong economic activity increases demand for energy. 4) Role of Hedge Funds—It is widely assumed that significant trading speculation impacts prices. 5) Amount of Natural Gas In Storage Reserves to compliment well output. Looking at each of the these in detail will assist understanding of WHAT is being offered by marketers and HOW it is being marketed. www2.nrcan.gc.ca/es/erb/prb/english/View.asp?x=117 WEATHER The hurricanes in the fall of 2005 seriously affected the price of natural gas in North America. This is due to the fact that most of American domestic supply is located in and/or refined in and/or piped from this area where the hurricanes disrupted that supply. Using price comparisons from this time are not realistic of price fluctuations. Here is what the NRCan Canadian Natural Gas Review of 2005 (published Dec 2006), has to say about that in their discussion of upward price pressures: The big story in the US was the offshore Gulf coast where production fell a staggering 20% (759 Bcf) due primarily to hurricanes Katrina and Rita which resulted in large amount of production to be shut-in. At the peak 90% (9.2Bcf/d) was shut-in. teca News 10 MAY 2007 teca News Natural Resources Canada Forecast AVERAGE Price 2006–2020: CDN $7.73/GJ Annual weather-related market price fluctuations are shown in MARKET SPECULATION this chart from the American Energy Information Administration The role of hedge funds in the markets is increasingly in the news. (EIA). US residential price is the top line. Price peaks in the winter The latest revelations regarded naked short selling—selling stocks heating season, drops in spring and rises again in the summer you don’t own. Market speculation is variously stated as accounting cooling season. Note the peak due to hurricanes in 2005. for anywhere from 15–25% of the price of hydrocarbon fuels. The role of hedge funds is a relatively new practice contributing to price volatility of fuels. As one hedge fund website currently explains1: Hedge funds are extremely flexible in their investment options because they use financial instruments generally beyond the reach of mutual funds, which have SEC regulations and disclosure requirements that largely prevent them from using short selling, leverage, concentrated investments, and derivatives… …In the last nine years, the number of hedge funds has risen by about 20 percent per year and the rate of growth in hedge fund assets has been even more rapid. Currently, there are estimated to be approximately 8350 hedge funds [almost all in the US-Ed.] managing $1 trillion. While the number and size of hedge funds are small relative to mutual funds, their growth reflects the importance of this alternative investment category for institutional investors and wealthy individual investors. Special unregulated investment opportunities for special investors This chart from the NRCan 2005 Review shows the normally that are affecting the price we pay for fuel and other commodities. direct relationship between oil price and NG price. RESERVES AND PRODUCTION/DEMAND OIL PRICE Reserves are interconnected with both production and demand levels. ECONOMY: GROWTH & EXCHANGE RATE Again the NRCan Review discussion of this point states: Strong economic growth in Canada (3%) and the US (3.6%) in 2005 contributed to a robust economy. Low interest rates combined with relatively high energy prices continue to a shift in jobs and investment to the energy sector thus bidding up prices. Another economy related factor is the exchange rate. As the American dollar falls, the Loonie rises. The exchange rate has gone from 65¢US in 03 to 88¢ US today. NRCan’s comment: This has the effect of lowering the price Canadians pay for natural gas… NRCan comments accompanying the above chart state: Canadian year-end reserves peaked in 1983, and have fallen significantly since then. Canada’s reserves-toproduction ratio (R/P) is currently 9.3 years meaning that Canada has 9.3 years of production left at current production rates if no new gas is discovered. Today’s R/P ratio is much lower than its peak in the 80’s, before natural gas markets were deregulated. 1 http://www.magnum.com/hedgefunds/advantages.asp teca News 11 teca News MAY 2007 THE MARKETING GAME As production increased and reserves fell through the 80’s and Now that you understand a bit about the volatility of gas prices, 90’s, Canada’s R/P ratio fell rapidly before levelling off at the 9 years some of the causes of price fluctuations and what the price forecasts are, let’s look at how marketers are approaching residential of production we see today. Storage levels are related to demand as well. NRCan again: customers. “In general, 2005 brought lower demand to regions with First let’s look at the Terasen website. By the way, customers are large industrial sectors due to high prices and similarly paying over $5 million for this consumer “education” campaign. lower demand to areas with large core (i.e., residential TECA “paid” Ken a free meal when he delivered this straight talk. and commercial) sectors due to a warmer winter. In Did we get a deal or what! 2005, Canadian demand declined nearly 3% (2% in the east and 4% in the west), driven mainly by lower industrial and power generation demand.” Normally storage levels are inversely related to NG price. However NRCan reports that the near record levels in storage at the end of the 2005/06 heating season “did not moderate natural gas prices.” You can see in the chart here that lower storage levels in 2004 did not inversely effect prices either, as they did in the more normal 2001–2003 period. Everyone likes to have choice. Soon you’ll be able to choose who you buy your natural gas from. You can continue to buy from us at a variable rate as you do now. Or you can lock into a long-term, fixed-rate contract with a gas marketer. No matter how you choose to purchase your natural gas, we’ll deliver it. And provide the customer service you expect, including billing and emergency [Emphasis ours–Ed.] response. ? VARIABLE VS. FIXED RATES FUTURE PRICE So tying together all these upward and downward pressures on prices, what is the forecast for NG prices in Canada? NRCan says: According to the forecasters surveyed, between 2006 and 2020, Canadian natural gas prices are expected to average about CDN $7.73/GJ. Below is the Current Market Price (forward curve) for NG at Sumas: $8.50 Cdn/GJ for 2012. This gives you an idea of the real price today that utilities and marketers are purchasing gas for in locked-in futures contracts . $10.50 $9.50 $8.50 So this Terasen ed-u-ma-cational material leads the consumer to believe that Terasen rates are “variable” as opposed to marketer rates that enjoy a “long-term, fixed-rate” contract price. Yet elsewhere on the Terasen site, they say they use “several tactics and strategies to ensure a reliable supply at a reasonable price.” Then they list various ways they do this including the fact they “lock in the price of gas through the use of contracts.” And that they “put gas in storage for use at a later date.” In fact, as Ken explained, Terasen typically locks in from 50% to 70% of their annual supply requirement in 1-year contracts. This means only 30% to 50% is variable rate gas. The quarterly rate reviews before the BCUC are to make sure the portion of variable rate gas doesn’t put Terasen in a deficit position. READING THE GAS BILL $7.50 7 08 08 08 9 9 0 0 0 11 1 1 2 2 2 v 0 ar uly ov ar 0 ly 0 ov 1 ar 1 ly 1 ov ar 1 ly 1 ov 1 ar 1 ly 1 o u u u u M J N N M J N M J N M J N M J The next thing consumers must be aware of are the Terasen charges on their gas bill over and above the commodity cost of gas. The reason this is important is very simple. If a consumer decides to teca News 12 MAY 2007 teca News exercise customer choice and purchase gas from a private marketer, only the commodity cost of gas will change on their bill. SAMPLE BILL Customers will always pay these 3 charges to Terasen even if they sign on with a private marketer. Terasen billing charge Terasen delivery charge Terasen midstream charge To compare marketer offers, homeowners need to know the current rate they pay for gas. Currently, the rate is $7.66 per GJ. SHOULD I LOCK IN MY GAS PRICE? marketer to the Terasen commodity cost. And remember, there is no This is the question your customers are likely to ask you. The guarantee that savings will be realized. easiest way to explain the choices is as Ken does: If Budget Certainty is the goal, then consider what price premium Unlike typical products where a purchase is made at is acceptable. There is always a premium to buy longer term! a discrete point in time usually at an agreed on price, Consider the following points before making a decision: natural gas purchases are more akin to deciding on a 1) The consumer must sign a contract with a natural gas marketer mortgage for your home. to obtain a fixed rate. Simply put, to lock in is to make a choice. It is a choice 2) The contract is usually a long term commitment (3–5 years). that trades away future benefits from prices dropping for future risks of prices rising. 3) The contract can be cancelled within 10 days of signing. 4) Understand the terms of the agreement before signing. It all comes down to your comfort with the market, combined with your comfort that you can pay the price 5) Most importantly, compare rates among marketers. you agree to. The prime rule is that you should only 6) Rates offered for longer term contracts are normally higher lock in if it is a price you can afford today. than the rates currently offered for shorter term contracts. SAVINGS OR BUDGET CERTAINTY? 7) Natural gas prices go up and down. There is no way to know Homeowners need to determine their objective—Savings or whether you will pay more or less under a long term contract. Budget Certainty. If savings over their current Terasen Rate is 8) Marketers in the USA have returned customers to utilities on the goal, then compare the commodity cost being offered by the steep price increases. Sadly, the time when savings could be realized. teca News 13 teca News MAY 2007 WHAT ARE YOU ACTUALLY LOOKING AT? Now, let’s look at some actual marketing material (reproduced below) from a marketer. Some of this material is untrue and most misleading in tone. For example, the headline is not true. According to NRCan, Canadian NG prices dropped in 2006 by 27%. (This despite the fact heating degree days were up 26%. ) The price chart includes two unusual events that seriously affected 1 price band shown on marketer material 06 drop Natural gas prices continue to rise. Prices dropped in 2006. Only factors that INCREASE cost are listed • Higher demand for energy can increase prices as supplies decrease. • Natural gas is increasingly used to generate electricity and more gas is exported to the U.S. • Economic activity is expected to increase at 3–4% Economic Slowdown? per year, further increasing demand. • The Kyoto Accord, enviornmental concerns, and the governments decreased use of coal meana that natural gas will be used to generate electricity and may potentially lead to higher prices. • Over half a million Canadians have responded by locking in the their price with [NAME DELETED] and are avoiding exposre to fluctuations in the market. Marketers may well be going to offer a contract price at or near this $10 amount. Remember, the offer will be for commodity cost only. Prices continue down in 2007, to the current rate of $7.66 shown on the previous page. Note the price drop in 2006 (dark area). Hurricanes Enron Era 3 2 How current is the price information? Period of 2 unusual events Jan 2000 Jan 2006 the price increase. This is not to say that North American supply problems (peak oil and gas) are not affecting the upward climb in prices of all hydrocarbon fuels. But considering the complexity and volatility of gas prices, this marketer pamphlet simplifies the situation. For example, it only lists items that may drive the price up and fails to state that prices fluctuate down as well as up. teca News 14 Source: NRCan Feb 2007 Monthly Report MAY 2007 teca News KEY QUESTIONS Here are some key questions a consumer should ask before signing a contract. 1) What is the price and how does it compare with other marketers’ offers and with the Terasen Residential commodity rate? 2) Is the same rate being offered throughout the contract term? 3) What is the term of the contract? 4) How will the contract be renewed? 5) Does the contract automatically renew? 6) Under what conditions can the contract be cancelled? 7) Can the marketer cancel the contract and if they do are you liable for the signed rate when you are returned to the utility? 8) How do you contact the company if you have any questions? CONSUMER PROTECTION? Consumers tend to assume their interests are protected. This is rarely the case. The answer to the question “How am I protected?” is: Consumers have little protection once the contract is signed. • Your best protection is to be informed. • Marketers must be licensed and conform to a Code of Conduct as set out by the BC Utilities Commission. However, having a license does not limit what a company can charge! • The rate offered by a marketer is not reviewed by the BCUC or subject to any regulation. BUYER BEWARE! • Terasen Utility Rates and gas purchase program are subject to BCUC approval and follow a regimented dollar average purchase process. WARNING You can expect marketers to use the historical Terasen Stable Rate Option (SRO) as a comparison price. This ranged from $9 to $11, so $10 dollars is a good bet. Remember these private marketers have costs including commissions to their sales force. They must also make a profit. These costs will be tacked on to the commodity cost of gas. This will likely be an extra $2–$3 over the commodity cost they paid. This is your “certainty premium”. Accept it as that. Beware of the following catch phrases and statements: • Below Market Pricing • Wholesale Discount Pricing • Aggressively Priced Gas • 20 to 50% Savings (Ask: Versus What?) • Program is a partnership with Terasen A comment on that last statement. First, it is only a billing and delivery partnership. Second, Terasen Gas was recently sold to Fortis BC, but the Terasen Gas name is being kept the same. The brand name is way too valuable to give up. So, the former parent company Terasen Inc. has absolutely nothing to do with the “new” Terasen Gas. As a matter of fact, Terasen Inc is forming its own NRB (non-regulated business) to privately market gas to residential consumers. Hopefully it won’t be named Terasen too! The Ontario Experience Beware of ‘evergreen clause’ in long-term gas contract The Toronto Star Sat 10 Feb 2007 Page: D03 Section: Business Byline: Ellen Roseman Suppose you sign a long-term deal to buy natural gas. The contract is coming up for renewal, and you get a package in the mail, outlining the terms that will operate if you sign again. You think the price is high. So, you do nothing and assume you’re off the hook. Bad idea. Shop around before you sign energy contract The Toronto Star Wed 31 Jan 2007 Page: F04 Section: Business Byline: Ellen Roseman The price of natural gas has plunged in the past year. So, I look smart—at least in hindsight—for not renewing my five-year gas contract when it expired in fall 2005. Today, I’m paying 30.5 cents for gas from my utility, Enbridge Gas Distribution Inc. [Marketers] currently charge 39.9 cents to 41.8 cents for a five-year deal. BOTTOM LINE: THE MARKET IS THE MARKET Most likely you will be signing at a higher rate than you currently are paying. Know the current price you are paying, and be aware that prices move up and down. Homeowners can expect to see gas aggressively marketed both at their door and over the phone. Contractors can expect to see Ontariostyle programs of equipment, insurance plans and financing plans develop alongside the newly deregulated residential market. Terasen Inc only had to wait 11 years to get their wish! SELL REAL SAVINGS! Contractors can look at this as an opportunity. After all, you are the professionals! I can assure you the door-to-door sales folks aren’t. Inform your customers how you can help them truly save on energy cost. Changing filters regularly and installing a programmable thermostat can probably save your customer 10% to 20% off the top! Instant water heaters, solar back-ups and high efficiency equipment of all kinds will save them money for years to come as well. See this as an opportunity to up-sell your services. teca News 15 teca News MAY 2007 BTU Metering has geothermal developers smiling The proliferation of geothermal systems coupled with the deregulation of utilities, means BTU metering has become a hot topic. Geo Developers as Utilities With the advent of district geothermal and independent utilities being recognized by government officials, a whole new business option for the developers/owners of multiresidential units are viable. When developers are looking at projects, they now have the option of becoming a regulated utility capable of billing for energy provided to the end user in their developments. For example, in the past, a 20-unit condominium complex with state of the art geothermal heating and cooling systems would have required a major investment by the developer/owner, an investment certainly beyond the cost incurred by a traditional electric or gas system. Now the developer can look at recouping his initial costs through billing for the energy supplied to the end users. The developer may even be able to see a continuing profit from the utility role. Suddenly the initial capital costs are not such an issue. Also, with available tax credits and government incentives, development of geothermal state of the art heat/cool systems becomes even more attractive. Add to this a cost effective metering system and a whole new market becomes feasible, if not down right intelligent. Remote Metering While the use of geothermal for large projects including multi-residential has become more popular and cost effective, how to meter and bill for individual units is has been a major stumbling block. Metering is available, but the cost is prohibitive. The average cost per unit is typically in the range of $2000 or more. This added cost has limited the growth of several markets in the water distribution and air side. Now with the advance in remote enabled controls and cost effective meters, a solution is on the horizon. Europe has long been in the forefront of new developments in water distributed systems. Because of this, cost effective meters capable of communication with new remote enabled controls will give us an option in the very near future. So, how does a cost effective metering system work and how is it incorporated into a water system? Actually it is quite simple for either an air or water system—assuming, of course, the air system uses a heat/ cool water coil supplied by water based system. It is based on the simple formula : BTU = GPM X Delta T / 500 (Constant based on weight of a gallon of water X 60 minutes.) Since we can measure the flow rate in GPM and also measure the difference in temperature between the supply and return, we can with great accuracy deduce the actual BTU’s consumed. Therefore, we simply need to install a flow meter and temperature sensors. If they are capable of remote BTU Metering Detail 3 metering units per controller Local Control Interface Metering Unit 1 - Supply Temp 1 - Return Temp1 - Flow 1 - 30 day log 1 teca News 16 Metering Unit 2 - Supply Temp 2 - Return Temp 2 - Flow 2 - 30 day log 2 Metering Unit 3 - Supply Temp 3 - Return Temp3 - Flow 3 - 30 day log 3 MAY 2007 teca News System Architecture communication with a control device the ability to measure, track and record can be done from any location with remote access. These devices are now becoming readily available in Canada. They are cost effective—bringing down the cost per unit and giving the utility/owner/developer a simple, reliable and efficient billing process. satellite TCP/IP Internet — Pat Maguire Technical Services Rep Heating Products IPEX INC OR Local Control Interface Touch Screen Email server Computer Windows based WEB Browser 2-wire network BTU Meter BTU BTU Meter Meter BTU BTU Meter Meter BTU Meter BTU Meter Reduce Your Customer’s Green House Gas (GHG) Emissions TODAY! Installing a Conematic Heating System in a single / multi-family home will reduce GHG emissions by 1.5 tonnes per year. Our 90% (AFUE) efficiency rating, non condensing unit reduces energy costs (by as much as 35%) and provides a long-life domestic hot water solution. Our integrated system contains a boiler with complete primary / secondary hydronic and indoor / outdoor reset technology. On-board Controls can handle high / low temp. applications as well as fan-coil and domestic hot water operation. Our simplified installation produces more projects per week without additional staff! Dealer Development in BC Corporate Headquarters Murray Hasick 250-860-3613 [email protected] Sales and Service: 1-866-924-2663 Help Line: 1-866-750-3950 teca News 17 conematic.com teca News MAY 2007 Are You Covered?…Basics of contractor insurance coverage. B y the very nature of their work, contractors face a number of unique risks. Transportation is part of their daily routine— transporting tools, equipment, employees and supplies to and from job sites. Equipment and supplies are often stored both off and on-site. In recent years, there has been an increase in litigation arising from construction defects. Finally, some clients may not hire contractors operating without contractor insurance. They may also insist that contractors provide proof of insurance for sub-contractors. A variety of liability and property insurance products are required to cover a contractor in the event any number of things don’t go as planned or fail. This might involve a variety of events from loss of contents to bodily harm to a third party. Below you will find a list of insurance coverages available to you and your company. What is General Liability? Contractor insurance offers legal and financial protection for contractors should a claim arise, whether warranted or not. As you would expect, contractor liability often involves cases of property damage and personal injury. General liability provides protection against two types of financial loss arising out of a lawsuit against the company. First, it covers damages awarded to a third party because of injury or damage for which the insured is legally responsible, including loss of use of property claims. In addition, it covers the cost of defending the insured against the charges alleged in the suit, including attorney fees, investigation costs, and other legal expenses. What is an additional Insured? Construction contracts frequently require contractors to add other parties to their liability policies as additional insureds. It is a second layer of protection for the contractual indemnity agreement. Additional insured can submit claims directly to the insurer without first filing a claim against the named insured. What is a Hold Harmless agreement? In a hold harmless agreement, one party (the indemnitor, often the employer) promises to reimburse, and in some cases defend, the other party (the indemnitee, often an employee) against claims or suits brought against the indemnitee by a third party. The purpose of the hold harmless is to transfer the risk of financial loss from one party (the indemnitee) to another party (the indemnitor). Are employees covered under personal injury in a general liability policy? Employees have no coverage with respect to injuries sustained by the named insured, its partners or members, or to fellow employee or volunteer. Broad Form Installation Floater Coverage can be purchased for: • Materials on site (installed and in process) During period of contract. • Materials in transit to site. General Liability—In Depth While it is important to have liability insurance, there is no legal amount of coverage you must have to operate within the legal guidelines of your license as a contractor. If you do residential work, your customers are less likely to ask for a proof of insurance than if you deal with more savvy commercial clients. There is no penalty for underestimating your revenues at the time your estimated premium is quoted. You will first pay the minimum premium stated when you buy the policy, adjusted by the payroll or gross receipts you report at the end of the year (Reporting Basis). The annual premium is based on your gross receipts. Your rate is based on gross receipts. The company considers all aspects of their business including subcontracted costs, material, etc. The insurance company can, and in most cases does, readjust the final price if your gross receipts have changed from your initial estimate. You can usually bid work without liability insurance, but most often you cannot perform the work without the liability insurance The insurance costs vary based upon the amount of liability you opt for, that is, $1 million, $2 million, $3 million or more (Lately, it seems the minimum amount of insurance owners or general contractors are requiring is $2 million). The cost also varies based upon the type of work performed, the gross receipts of your company and total payroll expenses. The fundamental coverage for operations in progress, included in general liability insurance written for a service business or a contractor, applies to claims alleging bodily injury or property damage from occurrences during the course of work being performed by the insured. An example of such an occurrence would involve substantial fire damage to an older dwelling, during occupancy of the house by its owners, caused by an employee of the insured during the installation of a new air conditioning system. Commercial Property The Commercial Property category of insurance coverage is broad and can mean a lot of things. Mostly, it provides protection for your building and its contents such as, equipment, furniture, fixtures, tools, machinery, or property of others. Coverage can also be provided to your property away from your business premises. If you have an office and/or a workshop, coverage can be easily arranged. Some factors potentially reducing your insurance rates teca News 18 cont’d on pg 16 MAY 2007 teca News ADVERTISMENT Columbia Insurance Services #101 – 1065 Columbia Street New Westminster, B.C. 604-527-1377 www.columbiainsurance.ca CUSTOMER SERVICE IS OUR SPECIALTY Knowledge and Experience Tracey Plevy has over 29 years of insurance experience and has been operating Columbia Insurance from the Columbia Square Plaza in New Westminster since 1995. “In the beginning, we had 1 employee and worked 6 days a week. Today, we are a team of 8 with 100 years of combined experience. We represent the top insurance companies in the industry. So, whether you need insurance on your business, car, personal belongings, or boat, we have staff with the knowledge and experience to ensure you have coverage tailored to your needs.” Commercial Lines Insurance So many people are making the choice to work for themselves today as a landscaper, heating contractor or carpenter, but do not carry any insurance, especially liability insurance. In todayʼs legal atmosphere, it is not If I get sued, but When. You may not be responsible for the damage, but that doesnʼt mean you cannot be sued. Who will pay for your Personal Lines Insurance Frederick Lajeunesse Frederic has 12 years insurance experience, both as an underwriter and commercial insurance broker. Frederic has developed a variety of specialized insurance programs to meet the changing needs of the restaurant, retail and construction industry. When we ask a person about insurance for their personal belongings where they live we quite often hear, “I donʼt have much stuff, maybe $5,000 or $10,000. Then there is a fire, their home is destroyed and they realize the true replacement cost. Monica Kautz Monica has 15 year ʼs insurance experience and specializes in personal insurance whether for your home, condo or apartment including high value homes and homes with knob & tube wiring. Esther Thompson Esther has 27 years insurance experience with the last 20 years in Commercial Insurance. Esther works with clients in the auto industry, retail, warehousing, manufacturing and building ownership including residential/commercial stratas. Sydnee Hewitt Sydnee has 3 years insurance experience assisting our commercial brokers with their clients. Auto Insurance Customers want to renew their car insurance and tell us “everything the same as last year”. In the last year you may have become eligible for a discount or have earned Roadstar status. Our staff will explain the coverages you may have declined in the past or are now eligible for. Please call and one of our friendly and knowledgeable staff will be pleased to assist you! teca News 19 Colette VanRoon Colette has 14 years insurance experience and specializes in ICBC and private auto (an option to ICBC). teca News MAY 2007 Contractor Coverage cont’d from pg 14 include the following: • Monitored burglar and fire alarm system in place • Sprinkler system in place • Age of the building you are located in. • Other occupants in the building • Higher deductible broker about this limitation, it could mean losing all your tools and incurring a large out-of-pocket expense to replace them. Installation Floater Including Labour An Installation Floater covers property installed or constructed on buildings in the course of construction. Protection is also provided to cover your labour on these jobs. An Installation Floater provides protection for up to 90 days after job has been accepted or your interest ceases, whichever is first. We also cover items to be installed that are temporarily stored anywhere. Insurance for Your Tools One of the most frequent sources for claims is Theft of Tools. This coverage is normally called: Miscellaneous Tools. It is for hand tools such as drills, hammers, etc. Typically, an insurance policy will include a “Locked Vehicle” Warranty. In essence, this restricts the theft coverage from your vehicle to only when it is locked in an attached tool box. In other words, if your tools are located in your truck/van and they get stolen, you better hope that they were in a locked tool box. This restriction can be deleted on a case-by-case basis. Make sure you ask your insurance Contractors’ Equipment Insurance Not to be mistaken for the Miscellaneous coverage stated above. This coverage is for larger and mobile equipment such as backhoes, welders and generators. Generally, they have a deductible based on 2% or 4% and are subject to a minimum, such as $2,500. What is a Certificate of Insurance? This form is often requested from clients as proof to insurance. In most instances, your clients will require this in order to award you a contract. If you are dealing with a municipality or any level of government, the certificate of insurance is mandatory in most cases. We suggest that when you request your agent to mail a ‘cert’ to your customer, you also request that the agent faxes a copy to you. The reason for this is two-fold: a) peace of mind that your request has been processed, and b) in times of urgency, general contractors will usually accept a fax copy with your promise that an original is in the mail to them. Products & Completed Operations General liability insurance available for service and contracting firms includes two essential parts: • Coverage for operations in progress, and • Coverage for the products/completed operations hazard SYSTEM 636 ™ INTRODUCING THE CERTIFIED SYSTEM FOR FLUE GAS VENTING Tough Products for Tough Environments The use of plastic venting systems on gas fired water heaters, furnaces, and boilers is undergoing a significant change. In the summer of 2006 the CSA B149.1 Natural Gas and Propane Installation Code was amended to require all plastic venting materials to be certified to ULC S636. The code change is effective January 1, 2007. BC Safety Authority has advised enforcement will be mandatory, June 30, 2007. Provincial regulators from across Canada changed the B149.1 Code to make certain that all plastic vent systems are certified to a recognized standard. So, what certified plastic vent materials are available? That’s where IPEX can help, with their new Certified System 636 flue gas venting systems. Only IPEX offers complete certified systems of pipes, fittings, and cements meeting the stringent demands of the S636 venting standard. All with the quality, performance and support you’ve come to expect from IPEX. WWW.IPEXINC.COM Call your local ECCO Sales Branch today for more information on the system 636™ ble Burnaby: Phone: 604-420-4323 • Toll Free: 1-800-663-7684 Availa w o N Langley: Phone: 604-530-9755 • Toll Free: 1-800-881-3226 CO! at EC Victoria: Phone: 250-361-3395 • Toll Free: 1-866-361-3226 Distributed by: ECCO HEATING PRODUCTS LTD. teca News 20 www.eccohtg.com MAY 2007 teca News Contractors have long tail liability exposures; meaning that after their work is done at a site, there is still a possibility that something may go wrong with the work performed. This could happen 3 days from the date of work or 12 months or even longer. Your Commercial Liability Insurance includes “Products & Completed Operations” insurance but not all contracts are identical. Make sure to inquire about this coverage. An Insurance Broker’s ability to provide needed liability protection is strengthened, and the potential for errors and omissions claims is reduced, by insurers’ adoption of general liability coverage parts that basically include coverage for both operations in progress and completed operations. Provision is made for the elimination of the products/completed operations hazard as an option for the individual insured or for underwriting reasons. Some insurers utilize forms in general use a decade ago, which basically cover operations in progress and make provision for covering completed operations as an option. Coverage for operations in progress would terminate in the hypothetical illustration when the insured has finished the installation and it has been accepted and used by the owners. If a fire occurred after that time and was caused by faulty installation of the equipment, the operations in progress coverage would have no application. Only completed operations coverage would protect the insured in those circumstances. Other Considerations The building boom generated by favourable economic conditions has encouraged many construction workers to strike out on their own as contractors. Good economic times have added to the ranks of service companies that repair and replace heating and cooling equipment. These entrepreneurs are in need of guidance and sound insurance protection that can only be provided by informed and conscientious insurance professionals. The liability risks associated with their work and an insurance product designed for them are of primary importance and require careful attention. The insurance industry is cyclical. Some companies might be more willing and eager to write business at overtime. Make sure you contact your broker prior to renewal to allow them the time to ‘look’ for better rates on renewal. Another way to reduce rates is to request a higher deductible. Generally, the minimum deductible is $1,000. If you feel comfortable with $2,500 as a deductible, you will save on your premium cost. In summary, it is crucial for a contractor to carry both property and liability insurance. It could be the protection you need in the event of a claim that could be devastating financially. Make sure you discuss the above mentioned coverages with your insurance professional. —Frédéric Lajeunesse, BComm Account Executive, Columbia Insurance Services We are pleased to announce that we have opened a new branch at: 1001 Venables Street Vancouver, BC Tel: 604-255-8727 fax: 604-255-8757 Contact Oscar Bresolin – Branch Manager Email:[email protected] Or Wilson Ho – Sales Rep – 604-787-6444 Email: [email protected] - Coquitlam – Maple Ridge – Sechelt - teca News 21 teca News MAY 2007 uality New! teca forced air software Our Heat Loss/Heat Gain and Duct Sizing programs have been updated to include heat pump equipment selection including a Balance Point Worksheet, low pressure duct systems and more duct system design options. Read all about it and download an Order Form from our website at teca.ca/fas.htm ����� TM Trane Dealers Make More Money. Join the fastest growing brand in BC. www.trane.com “Mechanical Rooms in a Moment” The M1 Mechanical Module HI-125, Pro-Modular TK and TKI Primary Loop pumping modules emphasize improved quality, simplified installation while enhancing the image and profitability of Hydronic contractors. The Mechanical Modules are for use with a boiler and an indirect water tank. By adding our secondary pumping or zone pumping system you now have a pre-tested, warranted mechanical room installed in only a few hours. Precision Hydronics has also designed the Munchpak™, Pinnapak™, Ultrapak™, Trinapak™, Prestopak™ and the Knight Boiler Stand™ around the needs of the contractor installing an extremely efficient condensing boiler. It is reasonable to assume that the entire mechanical room assembly including boiler can be completed within thirty minutes. All products are factory assembled and tested prior to shipment. Bush Sales Ltd. 1-800-668-2677 www.hi-velocity.com Manufactured By: Precision PHP www.phpinc.us HydronicsTM 3/28/2007 11:29:28 AM PHP Cover4.825x7 Bk Wt Bush Sale1 1 teca News 22 MAY 2007 teca News teca Member Meetings • First Thursday of the month September through June. Electrical Replacement Parts for Saskatoon-built vanEE®, ENEREADY vanEE® and ENEREADY™ Heat Recovery Ventilators (Sept & Jan meetings usually fall on 2nd Thursday.) • Speaker and full sit-down meals with a price of $30. • Location: Executive Plaza, 405 North Road, Coquitlam, just north of Lougheed Highway • Doors open at 6:00pm. Dinner served at 6:30pm. • RSVP Required. See web site What’s New: Trade Events for downloadable form Upcoming Meetings & Speakers Scott Bissett, May 3 Armstrong Monitoring Corp “Carbon Monoxide Monitoring” June 7 ... motors, speed controls, speed resistors, relays, transformers, autotransformers, ... TECA 1st Annual AGM Patrick Maguire, Ipex Inc. “Radiant Cooling” #4 - 6420 Beresford Street • Burnaby British Columbia CANADA • V5E 1B6 Telephone: 604-433-5697 • Fax: 604-438-8906 For All of your Heating, Cooling and IAQ Needs Ideal for New & Retrofit Construction Draft Free Space Saving Quick Installation Small Diameter Duct Constant Air Circulation Eliminates Stratification Superior Humidity Control Adjustable Vents Maximize Air Control Hi - Efficiency Programmable EPC Motors Hi - Efficiency Pre-Piped Refrigerant Cooling Modules Energy Smart Motors • Hi-Efficiency, reduce operating costs up to 50% • Programmable EPC inverter drive, utilizing mass flow technology to supply 1.5 to 5 tons air flow • 6 independent speeds 1. Hi-Cooling 2. Low-Cooling 3. Dehumidification 4. Hi-Heating 5. Low-Heating 6. Constant air flow • Zoning Friendly Bush Sales Ltd. 1-800-668-2677 Manufactured By www.hi-velocity.com ESP 472.01 Bush Sales (5.694 x 51 1 teca News 23 12/19/2006 12:29:49 PM teca News MAY 2007 Phone: 1-888-774-8484 Fax: 1-866-414-0100 www.teca.ca teca Mail: 6004 Lois Street, Powell River British Columbia V8A 4T7 thermal environmental comfort association AGM Notice Notice is hereby given that the First Annual General Meeting of the Members of the Thermal Environmental Comfort Association of BC will be held at the Executive Plaza Hotel, 405 North Road, Coquitlam, BC, from 6:30 pm to 9 pm on Thursday, June 7, 2007. If you are a Voting Member in good standing and unable to attend the AGM, you may still nominate someone to stand for the Board and you may still vote by Proxy. Please use the forms below. Member Nomination Form Speak to the person you wish to nominate to the TECA Board of Directors and secure their consent to stand. If they will not be in attendance at the AGM get WRITTEN consent and return with this form. A second may be solicited at the AGM. Please print legibly: I hereby Nominate ________________________________________ of________________________________________ Name Company To stand for election to the 2007 Board of Directors of the Thermal Environmental Comfort Association of BC. Nominated by_________________________________________ (Your Name: Please Print) _________________________________ Signature Notice of Proxy Voting Secure permission of the person you name to vote on your behalf. Confirm they 1) will be attending the AGM and 2) are a VOTING Member. Current member lists and contact information are posted on our website at www.teca.ca. I hereby consent to give my proxy to vote on behalf of myself to: ___________________________________________ of _______________________________________________________ Name Company At the 2007 Annual General Meeting of the Thermal Environmental Comfort Association of BC. __________________________________________________ Your name (Please Print) ___________________________________________ Signature MAIL OR FAX TO THE TECA OFFICE BY MAY 31, 2007 F Volunteer for your industry. Stand for Nomination to the TECA Board! There are currently positions open on the TECA Board of Directors. Directors shape policy and serve on Board Committees. Expect to volunteer a minimum of 5 hours per month. If you would like to stand for nomination, please contact a Nomination Committee member: Scott Miller of Integrity Mechanical: Jerry Stroppa Townline HVAC & Geo: Terry Regier of ECCO Heating Products: 778.889.7418 604.454.4678 604. 420.4323 teca News 24 [email protected] [email protected]. 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