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
Submission Date:
October 5, 2012
Page 119
53.14.1 Explain how the deployment and post-deployment benefits will be
tracked and be returned to the ratepayers.
Please refer to the response BCUC IR1 Q54.14.2.
Response:
53.14.2 Does FortisBC propose accumulating the benefits in a holding
account to be dealt with in subsequent revenue requirement
applications before being taken in as revenue?
No. Consistent with all capital projects undertaken by the Company, the benefits would be
incorporated into Revenue Requirements either as cost reductions or incremental revenue as
they are forecast to be realized. Attempting to accumulate the benefits in a "holding" deferral
account would be inconsistent with the treatment of other capital, would provide no incremental
benefit to customers and would add additional administrative burden to the utility. The Company
has forecast loss reductions of 2 GWh associated with theft reduction due to AMI in its 2012 –
2013 Revenue Requirements Application.
Response:
53.15 Please explain why theft reduction is not part of the OPEX expenditures/benefits.
Theft reduction benefits are a combination of power purchase reductions and revenue
increases, and so have been separated from capital and operating expenses.
Response:
53.16 Provide a cash flow diagram of the costs and benefits for the Application.
Please refer to the response to BCUC IR1 96.1.