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

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Response:
FortisBC Inc. (FortisBC or the Company)
Application for a Certificate of Public Convenience and Necessity
for the Advanced Metering Infrastructure Project
Response to British Columbia Utilities Commission (BCUC or the Commission)
Information Request (IR) No. 1
53.2 What is the basis of the estimate?
Submission Date:
October 5, 2012
Page 112
AMI Project Development and Regulatory Costs consist of expenditures incurred preparing the
CPCN application and managing the regulatory submission/process for review of the
application. Estimated costs are based primarily on expenditures incurred for similar regulatory
processes.
CAPEX and Sustaining Capital are largely based upon fixed costs and unit prices negotiated
with Itron, and actual costs (Meter Growth) and benefits (Handheld Replacement) inflated to the
year in which they would be experienced. The IT and Project Management cost estimates are
based upon FortisBC’s experience in managing large scale projects.
Measurement Canada avoided costs are estimated based upon the Company’s analysis of the
performance of its existing fleet of meters against the new Measurement Canada SS-0-6.
Operating Costs are based upon existing experience in managing the utility, inflated through the
project timeframe.
Operating Cost benefits are avoided costs based upon existing costs inflated through the project
timeframe.
Response:
53.3 What is the percent accuracy of the Class 3 estimate of the costs and the
benefits? Note the previous application was -10 percent/+20 percent.
For reference: