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FortisBC Inc. (FortisBC) Application for a Certificate of Public ...

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Response:<br />

<strong>FortisBC</strong> <strong>Inc</strong>. (<strong>FortisBC</strong> or the Company)<br />

<strong>Application</strong> <strong>for</strong> a <strong>Certificate</strong> <strong>of</strong> <strong>Public</strong> Convenience and Necessity<br />

<strong>for</strong> the Advanced Metering Infrastructure Project<br />

Response to British Columbia Utilities Commission (BCUC or the Commission)<br />

In<strong>for</strong>mation Request (IR) No. 1<br />

Submission Date:<br />

October 5, 2012<br />

Page 195<br />

engaged in theft will be identified and the remaining 190 sites will be undetected<br />

representing an annual revenue loss <strong>of</strong> $3.7 million in 2012. ...<br />

However, it is anticipated that after it becomes clear that <strong>FortisBC</strong> will not have an AMIenabled<br />

theft detection program (as would be the case with the status quo), the current<br />

deterrence benefit will drop from 75 percent in 2012 to 70 percent by 2017.”<br />

A 2011 study titled “The Nature and Extent <strong>of</strong> Marihuana Growing Operations in Mission<br />

British Columbia: A 14 Year Review (1997-2010) by the University <strong>of</strong> the Fraser Valley”<br />

(Exhibit A2-7) states on page 6:<br />

“In terms <strong>of</strong> electrical theft, this too has increased three fold in terms <strong>of</strong> the percentage <strong>of</strong><br />

operations since the late 1990’s that installed a bypass to steal power. Specifically, as<br />

demonstrated in Table 8, a majority (57 per cent) <strong>of</strong> [Mission marijuana grow] operations<br />

were stealing electricity.”<br />

85.1 Please describe the <strong>FortisBC</strong> Revenue Protection Program. Please include in<br />

your description the program's objective, staffing and budget (from 2009 to<br />

2011).<br />

The primary objective <strong>of</strong> the <strong>FortisBC</strong> Revenue Protection Program is to identify, recover and<br />

deter electricity theft. The program staff consists <strong>of</strong> one manager who is responsible both <strong>for</strong><br />

the administration <strong>of</strong> electric theft investigations as well as the administration <strong>of</strong> third party<br />

contracts (leasing <strong>of</strong> pole space to telecommunication companies). The theft investigation<br />

activity is supported by one contracted theft investigator responsible <strong>for</strong> investigating leads on<br />

potential theft sites, invoicing and collecting losses, and attending court as required. The<br />

budget also includes support from a contracted power line technician to assist in after-hours and<br />

underground service investigations. The budget <strong>for</strong> the years 2009-2011 appears in the<br />

following table.<br />

Response:<br />

2009 2010 2011<br />

$225,000 $230,000 $234,600<br />

85.2 Please describe any expected changes in the Revenue Protection Program and<br />

budget over the next 20 years, under the status quo scenario and under the AMI<br />

scenario.<br />

No changes to staffing or methodology are assumed in the Status Quo scenario, with costs<br />

escalating by inflation.

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