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)
Participation
Rate
Information Request (IR) No. 1
Table BCUC IR1 Q110.2b - Industrial
Per
Participant
Savings
(Capacity)
Incremental
to RIB
Per
Participant
Savings
(Energy)
Incremental
to RIB
2016 Power
Purchase
Savings
($000s)
2020 Power
Purchase
Savings
($000s)
Submission Date:
October 5, 2012
Page 267
2030 Power
Purchase
Savings
($000s)
TOU 20% 10.50% 3.60% 168 164 200
CPP 20% 9.50% 0.00% 26 35 68
PrePay 8% 5.30% 9.80% 125 115 122
Participation
Rate
Table BCUC IR1 Q110.2c - Wholesale
Per
Participant
Savings
(Capacity)
Incremental
to RIB
Per
Participant
Savings
(Energy)
Incremental
to RIB
2016 Power
Purchase
Savings
($000s)
2020 Power
Purchase
Savings
($000s)
2030 Power
Purchase
Savings
($000s)
TOU 20% 10.50% 3.60% 635 676 817
CPP 20% 9.50% 0.00% 85 114 224
PrePay 8% 5.30% 9.80% 481 495 538
Response:
110.3 Using the analysis above, please calculate the expected net present value for the
introduction of each of the residential TOU, CPP and Pre-pay rates from 2016 to
2030. Please state all assumptions used in the analysis, and include set-up
costs.
Assuming start-up costs in 2015 of $250,000 for TOU and CPP and $500,000 for pre-pay, and
beginning the programs in 2016, the following 2012 NPV values (at an 8% discount rate and
using the calculations provided in the response to BCUC IR1 Q110.1) are calculated:
Conservation
Rate
NPV Savings
($000s)
TOU $7,710
CPP $1,219
PrePay $5,273