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)
106.0 Reference: Project Alternatives
Response:
Information Request (IR) No. 1
Exhibit B-1, Tab 7.0, Section 7.5, pp. 105-118
Project Alternatives Considered
Submission Date:
October 5, 2012
Page 246
106.1 The analysis of alternatives in the Application considered only discrete
alternatives. Were any hybrid alternatives considered to optimize the solution?
(i.e. maximize NPV by utilizing a mix of the alternatives)
FortisBC assumed that vendors would propose hybrid alternatives in optimizing their responses
to the RFP. In fact, the negotiated AMI contract allows Itron to propose and/or substitute
alternative, functionally-similar LAN solutions (such as PLC or direct cellular connection) where
they are more economic than the main RF solution.
FortisBC also has the contractual right to request or impose changes to the LAN technology
where it may reduce WAN costs (although in this case FortisBC will be responsible for any
increases in vendor-related costs, so each instance will be evaluated on its economic merits).
In either case, the economics of the AMI project will be preserved or enhanced if alternative
LAN technology is selected.
The alternative analysis prepared by FortisBC presents only single-technology LAN alternatives
for simplicity and clarity.
Response:
106.1.1 If not, why not?
Please see the response to BCUC IR1 Q106.1.
106.2 Please discuss why a hybrid solution such as the following could not, was not, or
should not be considered.
• AMI deployed to replace bulk of electro-mechanical meters where satellite
WAN connection not required
• Existing digital meters re-deployed to remote areas with replacement by
either AMR, PLC or AMI as technology develops and economics permit.