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)
109.0 Reference: Future Benefits
Response:
Information Request (IR) No. 1
Exhibit B-1, Tab 6.0, Section 6.5, p. 103
Future Conservation Rate Structures -
CPP Customer Response Assumptions
FortisBC states on page 103 of the Application:
Submission Date:
October 5, 2012
Page 263
“FortisBC has estimated ... the effect of possible conservation rate structures enabled
by AMI. TOU, Critical Peak Pricing (CPP) and pre-pay rate structures have been
assessed at this high level with potential impacts stated as incremental to those
achieved via the Company’s default RIB rate.”
109.1 What estimates did the Navigant study make regarding the difference between (i)
the CPP residential price and (ii) the average price charged to residential
customers when estimating customer response to CPP pricing?
Navigant did not attempt to estimate the difference between existing residential rates and CPP
rates when estimating customer response to CPP pricing. Navigant does note that the results
with respect to conservation rates are relatively consistent, however, which could imply that, 1)
the response to conservation rate structures is relatively independent of the difference between
existing and CPP residential rates, or 2) that the difference between existing and CPP rates is
relatively similar at the utilities studied.
Navigant developed estimates of the energy and peak load savings for various future
conservation rates and load control programs that would be enabled by AMI per participating
customer. There are multiple pilots and studies with relatively consistent estimates of energy
and capacity savings per participating customer (when expressed as a percent of their peak
demand or annual energy use) 6 .
Response:
109.1.1 Are these assumptions reasonably consistent with FortisBC
expectations of the additional value of energy at these critical
peak periods? Please explain why or why not.
6 Exhibit B-1, Appendix C-1, p12