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 249
Long Term Resource Plan – Midgard Consulting 2011 FortisBC Energy & Capacity
Market Assessment), the effect of possible conservation rate structures enabled by
AMI.”
The May 2011 Midgard Consulting Inc. 2011 FortisBC Energy and Capacity Market
Assessment Report states on pages 2, 3 and 21:
“The wholesale electricity market in British Columbia has a limited number of buyers and
sellers and as a consequence wholesale pricing in the province essentially amounts to
the wholesale prices for the Mid- Columbia ("Mid-C") market adjusted to take into
account the costs of moving electricity into BC.” (page 2)
“FortisBC’s continued reliance upon the wholesale electricity market to meet current and
future needs is not an unreasonable strategy - especially in light of the modest sizes of
FortisBC’s energy and capacity deficits.” (page 3)
“Midgard calculated the British Columbia Wholesale Market Energy Forecast Curve by
taking the Mid-C Forecast Price Curve as the starting point, adding the cost of
transmitting power from Mid-C to FortisBC territory, and then converting the resulting
price into Canadian dollars.” (page 21)
The Midgard Consulting report also includes the following table on page 23:
The Australian Victorian Auditor-General’s November 2009 Report “Towards a ‘smart
grid’ – the roll-out of Advanced Metering Infrastructure” states: