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
Submission Date:
October 5, 2012
Page 203
87.1.1 Please explain how the power purchase cost from theft sites has been
determined. Specifically, does this reflect the incremental generation and
network costs associated with the power supplied to theft sites, or the lost
revenue margin?
The power purchase cost for theft sites has been derived from the BC Wholesale Energy Market
Price forecast. It is the marginal power purchase expense incurred to supply theft sites not the
revenue margin.
Response:
87.1.2 Please explain how the recovered revenue from theft identification has
been estimated for both scenarios and provide supporting evidence.
Recovered revenue from theft identification has been estimated in the same manner in both
scenarios. The following assumptions are made:
• The detected sites are assumed to become paying sites in the current year;
• The associated consumption is priced at the marginal revenue rate (residential
conservation block 2);
• The detected sites are back billed on average for 1 year with a 20% estimate of
collection success; and
• The sum of payment for the current year plus the associated back billing collection is
recovered revenue.
This estimate is based on FortisBC experience in billing and collections. Please also see the
response to BCUC IR1 Q85.4.1.
Response:
87.1.3 What rate schedule is the paying marijuana grow operation site assumed
to be charged under and why?