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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 28<br />

12.4 Of the key components <strong>of</strong> the <strong>FortisBC</strong> Smart Grid Vision, please identify those<br />

that <strong>FortisBC</strong> needs within the next 20 years.<br />

Please refer to the response to BCUC IR1 Q12.3.<br />

13.0 Reference: Project Need<br />

Response:<br />

Exhibit B-1, Tab 3.0, Section 3.2.3<br />

Order C-11-07<br />

Historical Perspective - <strong>FortisBC</strong>’s Distribution Substation Automation Program (DSAP)<br />

“<strong>FortisBC</strong>’s CPCN <strong>Application</strong> <strong>for</strong> DSAP described its legacy electro-mechanical<br />

protection and metering equipment as antiquated and obsolete. The Commission<br />

ultimately concluded that replacement <strong>of</strong> this legacy technology with new electronic<br />

technology to be appropriate and <strong>of</strong> benefit to ratepayers. 7<br />

7 Appendix A to Order C-11-07, page 13”. [Ref: B-1, pp. 25-26]<br />

13.1 Please provide the specific extract from page 13 <strong>of</strong> Appendix A to Order C-11-07<br />

showing the Commission conclusion that replacement <strong>of</strong> legacy electromechanical<br />

technology with new electronic technology is appropriate and <strong>of</strong><br />

benefit to ratepayers.<br />

The reference to page 13 <strong>of</strong> Appendix A to Order C-11-07 is in error, and should have correctly<br />

referenced page 11 <strong>of</strong> Appendix A to Order C-11-07, which states:<br />

“The Commission Panel there<strong>for</strong>e concludes that replacing the existing legacy technology with<br />

new electronic technology is appropriate.”<br />

14.0 Reference: Project Costs and Benefits<br />

Exhibit B-1, Tab 3.0, Section 3.2.4<br />

Opportunity Cost<br />

Exhibit B-1 notes that “Although not included in the financial model, there is also an<br />

inherent opportunity cost if AMI is not pursued at this time due to the non-financial

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