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
Please refer to the response to BCUC IR1 Q72.1.
Response:
Submission Date:
October 5, 2012
Page 163
72.2 Is there a cost associated with disposal of the existing meters? If yes, please
confirm the estimated amount and describe the nature of the disposal costs.
Please refer to the response to BCUC IR1 Q72.1. The cost of disposal is included in the
contracted deployment cost and has not been separately estimated.
Response:
72.3 Please list and discuss the factors that were considered in selecting option 1 as
the most appropriate option.
Option 1 was considered the most appropriate as it is in accordance with US GAAP accounting
guidance and therefore does not require the Company to apply to the Commission for an
accounting variance.
Response:
72.4 For each option identified in Exhibit B-1, page 77, does FortisBC propose to
recover the write-off or depreciation of the existing meters from ratepayers?
Please explain why or why not.
Yes, the Company does propose to recover the accelerated depreciation of the existing meters
from ratepayers.
The accelerated depreciation of the existing meters and recovery from ratepayers is an
important assumption in the Company’s financial analysis of the AMI project. The Company is of
the opinion that recovery from ratepayers is appropriate because:
• The acquisition of the existing meters was prudent and necessary in order for the
Company to provide service to customer;