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FortisBC Inc. (FortisBC) Application for a Certificate of Public ...

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<strong>FortisBC</strong> <strong>Inc</strong>. (<strong>FortisBC</strong> or the Company)<br />

<strong>Application</strong> <strong>for</strong> a <strong>Certificate</strong> <strong>of</strong> <strong>Public</strong> Convenience and Necessity<br />

<strong>for</strong> the Advanced Metering Infrastructure Project<br />

Response to British Columbia Utilities Commission (BCUC or the Commission)<br />

In<strong>for</strong>mation Request (IR) No. 1<br />

5.0 Reference: Description <strong>of</strong> Existing System<br />

Response:<br />

Exhibit B-1, Tab 3.0, Section 3.1<br />

Failure <strong>of</strong> existing electromechanical meters<br />

Submission Date:<br />

October 5, 2012<br />

Page 9<br />

“Moreover, new regulations (S-S-06) from Measurement Canada increase the accuracy<br />

requirements <strong>for</strong> calibrating and testing meters. The approximately 80,000<br />

electromechanical meters in the Company’s metering fleet are expected to fail<br />

compliance sampling at an increased rate, and the expected lifespan <strong>of</strong> the meter<br />

population will be significantly reduced.” [Ref: B-1, p.18]<br />

“Based on the new S-S-06 regulations, <strong>FortisBC</strong> anticipates increased failures, shorter<br />

seal extensions, and an increase in compliance sampling costs. As a result, <strong>FortisBC</strong><br />

expects an accelerated replacement <strong>of</strong> approximately 80,000 electro-mechanical meters<br />

and 8,000 digital meters over a 21 year period.” [Ref: B-1, p. 93]<br />

5.1 Please explain the anticipated failure rate <strong>for</strong> the electro-mechanical meters, and<br />

provide evidence to support the explanation. At what future date will all the<br />

existing 80,000 electromechanical meters have failed statistical testing and<br />

require replacement?<br />

A model was created to simulate and predict the useful life <strong>of</strong> the existing <strong>FortisBC</strong> electromechanical<br />

meter population. This model assumed reasonable and conservative failure rates<br />

based on the recommendations <strong>of</strong> our third party meter shop. The failure rates used in the<br />

model are consistent with rates observed by the meter shop when using SS-06 guidelines in<br />

preliminary sample testing. The model assumes that as a meter ages, the likelihood <strong>of</strong> a failure<br />

increases.<br />

For SS-06 there are 5 levels that a meter under compliance testing can attempt to achieve<br />

(target). This level corresponds to the maximum seal extension the meter is eligible <strong>for</strong> and is<br />

based on the previous extension period and the original seal length. For each decreasing level,<br />

the requirements to pass become more stringent, but the seal extensions become longer.<br />

For its model, <strong>FortisBC</strong> determined the highest level each meter lot could target under SS-06<br />

and then simulated compliance testing to determine pass/fail and the resulting seal extension<br />

length.<br />

<strong>FortisBC</strong> used the following probabilities <strong>for</strong> determining which SS-06 level was obtained by<br />

each meter lot during simulated sampling activities:

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