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

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Response:<br />

<strong>FortisBC</strong> <strong>Inc</strong>. (<strong>FortisBC</strong> or the Company)<br />

<strong>Application</strong> <strong>for</strong> a <strong>Certificate</strong> <strong>of</strong> <strong>Public</strong> Convenience and Necessity<br />

<strong>for</strong> the Advanced Metering Infrastructure Project<br />

Response to British Columbia Utilities Commission (BCUC or the Commission)<br />

In<strong>for</strong>mation Request (IR) No. 1<br />

Submission Date:<br />

October 5, 2012<br />

Page 262<br />

108.1.1 By what year does <strong>FortisBC</strong> consider that the generation capacity<br />

gap could be economically addressed through the introduction <strong>of</strong><br />

residential TOU rates?<br />

Please see the response to BCUC IR1 Q108.1.<br />

Response:<br />

108.1.2 Is the generation capacity gap primarily seasonal (i.e., between<br />

months) rather than within day? Please explain why or why not.<br />

Overall capacity requirements change with the season, but within the season they change by<br />

the day in response to the weather and unplanned outages. Likewise, they change within the<br />

day by the time <strong>of</strong> day in response to general customer load patterns. For planning purposes<br />

like the 2012 ISP or the AMI application, the capacity gaps are calculated based on monthly<br />

expected generation capacity and <strong>for</strong>ecast demands. However, even if a gap is shown, that will<br />

most likely only be <strong>for</strong> a few hours <strong>of</strong> the month it is shown <strong>for</strong>. The actual size <strong>of</strong> the gap will<br />

depend on the weather and any generation outages the Company may be experiencing and<br />

there<strong>for</strong>e any actual gaps may be larger or smaller than expected.<br />

Response:<br />

108.1.2.1 Please confirm that seasonal rates do not require AMI.<br />

Seasonal rates do not “require” AMI, although a seasonal rate could be challenging to<br />

implement with manual meter reading. If all customers were on the rate, it would require<br />

significant additional resources to read all the meters in a short duration at the time <strong>of</strong> a<br />

seasonal rate change. (Currently, the manual meter reading capacity is approximately 13,500<br />

meters per week, so it would require roughly nine times more meter readers to obtain a<br />

seasonal read from 115,000 customers in a week.)<br />

Proration <strong>of</strong> bills would be required <strong>for</strong> approximately 80 percent <strong>of</strong> customers even if the<br />

seasonal reads occurred over five days (since presumably only one day <strong>of</strong> the five would be the<br />

date <strong>of</strong> the seasonal change). In the experience <strong>of</strong> <strong>FortisBC</strong>, particularly with respect to the<br />

Residential Conservation Rate, customers prefer not to have pro-rated bills.

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