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
76.0 Reference: Project Costs and Benefits
Response:
Submission Date:
October 5, 2012
Page 167
Exhibit B-3, Excel Document: “FortisBC – AMI Excel NPV Analysis –
17Aug12”, Line No. 12;
Exhibit B-1, Tab 5.0, p. 81
Theft Reduction
Exhibit B-1 of the 2012-2013 Revenue Requirement and Review of ISP proceeding
notes the following in Tab 3, page 11 :
“System losses consist of:
1. Losses in the transmission and distribution system;
2. Company use;
3. Losses due to wheeling through the BC Hydro system; and
4. Unaccounted-for energy (meter inaccuracies and theft)
Losses are calculated by using a two year rolling average. The actual gross loss rate for
2012 is the average of the 2009 rate of 9.23 percent and the 2010 rate of 8.42 percent,
which is 8.82 percent. The loss rate for 2013 is further reduced to 8.76 percent due to
the AMI-based loss reduction program.”
Commission Order G-112-12 concerning the 2012-2013 Revenue Requirements and
Review of 2012 Integrated System Plan notes the following in directive 1.c.:
“The proposed Deferral Account for Power Purchase Expense variances from forecast is
approved and is to be amortized in rates in 2014.”
Exhibit B-1 notes on page 81 that one of the benefits of reduced electricity theft is
“increased revenues.”
76.1 Please confirm if the forecast revenue requirement per Line No. 12, Exhibit B-3
includes an estimate of system losses, including system losses due to
unaccounted-for energy due to theft. If not confirmed, please explain otherwise.
Not confirmed. The revenue forecast on Line 12 does not include any increased revenues from
electricity theft detection and deterrence. Additional revenues (and reduced power purchase
costs) related to electricity theft detection and deterrence were included on Line 52 Theft
Reduction.