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

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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 129
FortisBC does not believe any economic benefits are transferred from consumers to electricity
businesses.
Response:
56.5 How does FortisBC propose to review and monitor project viability and
management of risks, and the potential for and impact of unintended outcomes
on the ratepayers?
FortisBC plans to continuously review and monitor the AMI project and manage risks as they
are identified. Please also see Exhibit B-1, Tab 4.0, Section 4.3.5, pp. 66-67 and the responses
to BCUC IR1 Q46.1 - Q46.3.1.
FortisBC notes that the Project as proposed in the Application is viable. As a prudent utility
operator, FortisBC will ensure project risks are managed as is done for all capital projects
undertaken for the benefit of customers, however no ongoing monitoring of project viability is
planned.
57.0 Reference: Project Costs and Benefits
Response:
Exhibit B-1, Tab 5.0, Section 5.1, p. 72
Meter Reading Savings
57.1 The meter reading savings shown in the extract of Table 5.1.b above increase by
6.4 percent in 2017, and by a similar amount every three years after 2017. The
meter readings increase by about 1.7 percent per year in the other years. Please
explain the assumptions for these year over year inflation factors.
All meter reading expenses are inflated at 1.8 percent per year. However, in order to maintain
the average annual reads per meter reader at approximately 36,000 reads per year, the