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 164
• As the capital expenditures related to the Project are for the benefit of all customers, all
capital should be recovered from customers; and
• The accelerated depreciation of the existing meters is due to obsolescence as a result of
technological change, which includes a change in Measurement Canada compliance
standards for testing and sampling meters.
Response:
72.4.1 If the answer to the preceding IR is yes, please describe the proposed
method for recovering the write-down or depreciation of the existing
meters from ratepayers for each option.
In all three options, the recovery of the cost of the existing meters would be included as a
charge to depreciation expense in the year in which the meters are removed from service.
Response:
72.4.2 Please confirm and discuss if FortisBC would undertake the AMI project if
the write-off or depreciation of the existing meters was not recoverable
from the ratepayer.
The Company would not undertake the AMI project if the write-off or depreciation of the existing
meters was not recoverable from the ratepayer. Depreciation of assets that are used for the
benefit of customers is appropriately paid for by customers. If the write off of existing meters
and the installation of new Advanced Meters is determined to be in the public interest, then the
costs associated with the project, including any write offs, are appropriately borne by customers.
The Company is applying to proceed with the AMI project for the purposes described in Section
3.0, page 17 of the Application and in response to BCUC IR1 Q2.1, and does not believe the
shareholder should be at risk for the cost of the existing meters as a result.
Please also refer to the response to BCUC IR1 Q72.4.
72.5 Please confirm if the write-down of the existing meters of $8,590 thousand
includes all property, plant and equipment, including computer equipment and
software and other equipment, that will no longer be used and useful should the