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
Net Present Value of Revenue Requirements at 8.0 percent
Net Present Value of Revenue Requirements at 10.0 percent
Scenario 2:
(16,046)
(11,683)
Submission Date:
October 5, 2012
Page 161
Debt Return (Line 22) – 100 basis points increase per year commencing in 2014, to a maximum
Debt Return of 10 percent.
In this Scenario, the only change to the model was to change the rates in Line 22 as follows:
2012 2013 2014 2015 2016 2017 2018 +
Debt Return 5.92% 5.82% 6.98% 7.93% 8.73% 9.73% 10.00%
The NPV of the “Net AMI” project changed to the following:
Net Present Value of Revenue Requirements at 6.0 percent
Net Present Value of Revenue Requirements at 8.0 percent
Net Present Value of Revenue Requirements at 10.0 percent
Please also refer to the response to BCUC IR1 Q70.1.
71.0 Reference: Project Costs and Benefits
Exhibit B-1, Tab 5.0, Section 5.2.7, p. 77
Write-off Timing of Existing Meters
($000s)
(18,609)
(13,330)
(9,395)
“Moreover, new regulations (S-S-06) from Measurement Canada increase the accuracy
requirements for calibrating and testing meters. The approximately 80,000 electromechanical
meters in the Company’s metering fleet are expected to fail compliance
sampling at an increased rate, and the expected lifespan of the meter population will be
significantly reduced. Furthermore, due to the larger minimum sampling size mandated