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 264
It is not clear from the Navigant study how the CPP rates were set at the utilities studied, nor is
it clear what those rates were. It is therefore not possible to compare those rates with the
FortisBC forecast of the additional value of energy at critical peak periods. The Navigant study
does note that under CPP rates customers “are charged (pricing) or provided and [sic] incentive
(rebate) for usage during critical peak periods as defined by both reliability and economic
considerations” 7 so presumably CPP rates would not necessarily be set based only on the
additional value of energy at peak times.
Response:
109.1.2 Does FortisBC consider that it will face a risk of customer outages
as a result of lack of generation or network capacity which could
viably be addressed through a residential CPP product? Please
explain why or why not.
FortisBC attempts to ensure that generation and network capacity is sufficient to meet a wide
variety of (but not necessarily all) contingencies. The availability of CPP rates as an additional
resource to help alleviate load during contingency events could be beneficial.
Response:
109.1.2.1 If CPP is not a viable option for residential customers in
this situation now, but could be in the future, please
estimate when it could become a viable option.
The availability of a CPP option could be beneficial today in unusual contingency events.
Response:
109.1.3 Does FortisBC consider that it will face a risk of very high critical
peak period prices in the wholesale energy market which could
viably be addressed through a residential CPP product? Please
explain why or why not.
7 Exhibit B-1, Appendix C-1, p. 6