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
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 261
108.1 Does FortisBC expect to have a generation capacity gap in 2016 that could be
economically addressed through the introduction of residential TOU rates?
Please explain why or why not.
Table 3.3-A in Midgard’s report for FortisBC’s 2012 Resource Plan indicated a small capacity
gap in June 2016 based on system requirements to meet expected customer demand after
taking into account the effects of DSM. FortisBC is currently reviewing its system requirements
planning assumptions, including the determination of planning reserve margin, and based on
preliminary assessment expects that the future capacity gaps indicated in the table will not
emerge until later in the planning cycle, all else being equal. In any case, the ability to
economically address future capacity gaps on a planning basis through the introduction of
residential TOU rates is uncertain. The introduction of residential TOU rates would be expected
to change overall customer use patterns, however the determination of the impact on the few
hours in a year that sets the peak demand system requirements would only be known with any
certainty once greater experience with TOU rates has been gained. However, although the
impact on peak hour system requirement is uncertain, TOU rates would be expected to incent
customers to shift their use patterns generally, which could have the potential to reduce the
overall power purchase expense through active management of the power supply portfolio.