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

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Results:
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
Scenario Project NPV (000s)
filed Net AMI (errata 1) $17,629
Scenario 1 $17,258
Scenario 2 $17,011
Scenario 3 $15,641
Scenario 4 $15,888
Submission Date:
October 5, 2012
Page 136
The analysis for each scenario was identical to the Net AMI analysis in Exhibit B-3 other than
the changes in the New Operating Costs line described in each scenario.
The Company considers Scenario 1 more likely than Scenario 2, but considers both less likely
than the base inflation assumption of 1.8%.
The Company considers 1.8% to be a conservative scenario, and notes that if in the overall
NPV analysis the inflation assumption was changed to 3.0% (for all costs in both the AMI and
Status Quo cases), the NPV benefit of the AMI project would increase to $26.688 million.
Scenario 3 and 4, which provide for new operating costs starting in 2013, are unlikely since
operation of the proposed AMI project will not commence in 2013.
The supporting NPV analyses are provided as Attachment BCUC IR1 58.2.