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 12
FortisBC confirms that electro-mechanical meters are no longer available to be purchased new
on the market from the two main meter manufacturing venders currently being used - Itron and
Elster.
FortisBC currently uses Acheson metering services located in Acheson Alberta as its third party
meter shop. Support for some electro-mechanical meter forms has already been discontinued.
Some of the common meter forms are still being supported but due to the Measurement
Canada metering program changes currently being implemented, FortisBC is uncertain if this
support will continue. This view has also been expressed by the third party meter shop.
Response:
6.2 What is the average age of the approximately 80,000 electro-mechanical
meters?
FortisBC does not track original meter manufacturing dates for its meter population therefore the
average age of the approximately 80,000 electro-mechanical meters is not available. However,
as per the 2011 Depreciation Study, the estimated average life at December 31, 2009 was 12.7
years (includes all meters). Assuming there has not been significant replacement of these
meters, the average age would be older than 12.7 years (at most 14.7 years at December 31,
2011).
Response:
6.2.1 What is the unamortized depreciation of these electro-mechanical
meters?
The Company uses the pool basis of accounting for assets and thereby includes both electromechanical
and digital meters in the same asset account and therefore cannot separate the
unamortized depreciation of the two types of meters. The net book value of the unamortized
meters is forecast to be approximately $9.1 million as at December 31, 2013.