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 180
In light of these evolving detection risk considerations, FortisBC considers it reasonable that
there would be both an increase in paying sites and an increase in the use of alternative energy
sources. Both of these responses by illegal marijuana grow sites are logical given the increased
risk of the theft detection and the stable risk of paid consumption detection.
81.0 Reference: Project Costs and Benefits
Response:
Exhibit B-3, Excel Document: “FortisBC – AMI Excel NPV Analysis –
17Aug12”
Tab: Theft Reduction
81.1 For tab “Theft Reduction,” please confirm if the figures presented for 2012
through 2032, inclusive, are presented in real or nominal dollars.
The figures for 2012 through 2032 are presented in nominal dollars.
Response:
81.2 For tab “Theft Reduction,” please define each term listed below:
• Marginal Revenue
• Marginal Cost
• Marginal Revenue Margin
Marginal Revenue is incremental revenue received per MWh at the residential tariff rate which is
billed to FortisBC customers ($120.04 per MWh in 2012).
Marginal Cost is the incremental power purchase expense per MWh based on the BC
Wholesale Market Energy Price Forecast ($54.68 per MWh for 2012).
Marginal Revenue Margin is the difference between Marginal Revenue and Marginal Cost
($120.04-$54.68=$63.35 per MWh for 2012).
81.3 For tab “Theft Reduction,” please discuss the key cost assumptions made and
alternatives considered in determining the marginal cost for each year of the 20-