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

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Response:
Confirmed.
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
96.0 Reference: Project Costs and Benefits
Submission Date:
October 5, 2012
Page 225
Exhibit B-3, Excel Document: “FortisBC – AMI Excel NPV Analysis –
17Aug12”
Economic-Impact Analysis
The Commission’s Decision concerning BC Hydro’s 2006 IEP/LTAP states at pages
200-201:
“Typically the end result of a project evaluation is the expression of a PV or a levelized
cost of energy or capacity. Both calculations require the use of a discount rate, and both
calculations require a stream of cash flows to apply the discount rate to. The
Commission Panel accepts BC Hydro’s argument that two tests may be considered for
use in project evaluation. The first, and the more important, is an economic analysis of a
project, which should only use the incremental cash flows disbursed by BC Hydro as its
key input. The second, and less material test is a ratepayer impact analysis which
examines how BC Hydro will recover a project’s costs from its ratepayers and which may
include items typically not found in a conventional economic analysis such as sunk
costs, interest during construction and costs allocated from other departments of BC
Hydro.”
96.1 Please prepare and file an economic impact analysis in a working Excel
workbook, with active links and cells, of the net benefits for each of the following
alternatives:
• Gross AMI
• Gross PLC
• Gross AMR
• Gross Status Quo
• Net AMI
• Net PLC
• Net AMR