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 218
90.3 Exhibit B-1 notes that the Communication Structures and Equipment depreciation
rate is 8.05 percent, based on the 2011 Depreciation Study. Please discuss the
factors that were considered in determining that the rate according to the 2011
Depreciation Study was appropriate, including:
• Similarities and differences between the existing Communication
Structures and Equipment and that associated with the AMI project.
• The useful life of the existing Communication Structures and Equipment
compared to that associated with the AMI project.
• Industry experience and manufacturers recommendations that were
considered in determining the useful life of Communication Structures
and Equipment associated with AMI projects.
Please refer to the response to BCUC IR1 Q69.4.
Response:
90.4 Please confirm when FortisBC expects to commence depreciating any new AMI
meters.
The Company expects to begin depreciating a portion of the new Advanced Metering
Infrastructure including AMI meters in 2015 based on the 2014 year-end AMI plant in service.
Response:
90.5 Please confirm the useful life for depreciation purposes of the existing a) electromechanical
meters and b) digital meters that have been installed in the past five
years. (Note: this should be the estimated useful life of an individual meter upon
installation, as opposed to the composite useful life of the Meter asset group per
the 2011 Depreciation Study.)
The 2011 Depreciation Study recommended a 20 year Survivor Curve or average service life for
all of FortisBC’s meters including electro-mechanical meters and digital meters.