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

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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 231
In this analysis the only change was that it was assumed that the AMI Project Capital costs
exceed the expected costs of $47,689 thousand by five percent. This is unlikely given the
contingency allowance and the accuracy of the estimate. Please see the results below.
Response:
($000s)
Net Present Value of Revenue Requirements at 6.0 percent (21,227)
Net Present Value of Revenue Requirements at 8.0 percent (15,645)
Net Present Value of Revenue Requirements at 10.0 percent (11,449)
96.2.6 Please recalculate the NPV of the “Net AMI” project assuming that the
AMI Project Capital costs exceed the expected costs of $47,689 thousand
by 10 percent.
In this analysis the only change was that it was assumed that the AMI Project Capital costs
exceed the expected costs of $47,689 thousand by 10 percent. This is unlikely given the
contingency allowance and accuracy of the estimate. Please see the results below.
Response:
($000s)
Net Present Value of Revenue Requirements at 6.0 percent (18,863)
Net Present Value of Revenue Requirements at 8.0 percent (13,662)
Net Present Value of Revenue Requirements at 10.0 percent (9,766)
96.2.7 Please recalculate the NPV of the “Net AMI” project assuming that the
AMI Project Capital costs exceed the expected costs of $47,689 thousand
by 15 percent.
In this analysis the only change was that it was assumed that the AMI Project Capital costs
exceed the expected costs of $47,689 thousand by 15 percent. This is unlikely given the
contingency allowance and accuracy of the estimate. Please see the results below.