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

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
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 208
In the scenario specifically requested, the NPV of the Net Benefit is $23.4 million as presented
in the supporting analysis provided as Electronic Attachment BCUC IR1 87.2. All other
assumptions remain unchanged including price of electric theft at power purchase price.
.
Response:
87.2.4 Please recalculate the ‘NPV of net benefit’ assuming advances in lighting
technology result in five percent per year of all marijuana grow operations
converting to LED lighting in both the AMI and the status quo scenario.
FortisBC submits that the five percent level of LED conversion in marijuana production is not
likely for the reasons detailed in BCUC IR1 Q84.3.1. FortisBC believes that based on the
reasons detailed in the response to BCUC IR1 Q83.4.1, an annual conversion rate of two
percent per year beginning in 2017 is more reasonable. This more likely adoption rate results in
an NPV of the Net Benefit of $32.9 million. Please also refer to the response to BCUC IR1
Q83.4.1.
In the scenario specifically outlined in the question, the NPV of the Net Benefit is $21.4 million
as presented in the supporting analysis provided as Electronic Attachment BCUC IR1 87.2.
Response:
87.2.5 Please recalculate the ‘NPV of net benefit’ assuming advances in
alternative energy result in five percent per year of all marijuana grow
operations converting to alternative energy sources in both the AMI and
the status quo scenario.
FortisBC has no visibility on the number of illegal marijuana producers shut down by the RCMP
who are using commercial size generators since electricity theft is the focus of the utility.
However, the Company believes the use of alternative energy source in five percent of illegal
marijuana sites is unlikely for several reasons:
• Commercial generators are visible, noisy and readily observed during surveillance by
law officials;