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 233
The “Total Revenue Requirement for the Project” per Line No. 5 of Exhibit B-3 is the present
value of the net increase / decrease in the revenue requirement over the 20-year life of the
project, discounted at 8 percent.
Response:
97.2.1 In tab “Theft Benefit” of Exhibit B-3, please discuss how the following
items included in the net benefit / cost calculation change FortisBC’s
overall revenue requirement:
• Revenue margin from paying sites
• Recovered revenue from theft identification.
Recovered revenue from theft identification (back-billing) is recorded as sales revenue from
customers, which increases the total annual revenue collected in a given year. As the annual
revenue margin from paying sites increases (either through increased load or an increased
number of paying sites), the total annual revenue to be collected at approved rates will be
affected accordingly.
Response:
97.3 Please confirm the maximum incremental increase in revenue requirement (and
the relevant year) and maximum incremental decrease in revenue requirement
(and the relevant year) based on the figures presented in Exhibit B-3, tab “Net
AMI”, Line No. 13.
The maximum incremental increase in the revenue requirement is 1.71% and occurs in 2014.
The maximum incremental decrease in the revenue requirement is 1.76% and occurs in 2016.