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 157
69.1.1 In response to BCUC IR2 22.1 in Exhibit B-3 from the 2008 CPCN
Application, FortisBC stated:
69.1.1.1 Considering the previous response in Table A22.1, please
explain why a 20-year life was selected for the current
Application.
Please refer to the response to BCUC IR1 Q52.3.2.
Response:
69.2 While other regulatory bodies may use an economic useful life (EUL) of: Smart
Meters, 15 years; Telecommunications (Field Area Network), 15 years;
Telecommunications (Wide Area Network), 15 years; Distribution System Meters,
15 years; IT Hardware, five to seven years; and IT Software, three years, please
provide the rationale for using the EUL of 20 years stated when considering the
risk of technological obsolescence beyond 15 years.
Please refer to the response to BCUC IR1 Q69.1. The Company only used a EUL of 20 years
for meters. Depreciation rates for the other components of the Advanced Metering Infrastructure
were based on the rates recommended in the 2011 Depreciation Study filed as part of
FortisBC’s 2012 – 2013 Revenue Requirements Application and accepted by the Commission.