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

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Response:
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 291
119.4 Has FortisBC communicated a cost savings or rate benefit to its customers in
any of its public workshops, open-houses or mailings associated with the AMI
project?
In its customer collateral, FortisBC consistently provides the cost savings benefit along with
other customer benefits of the AMI project. FortisBC developed a website dedicated to the
project at www.fortisbc.com/ami which lists the benefits of the project, including the cost
savings. This site also houses FAQ’s which speak to the most common concerns of the project.
As of September 1, 2012 FortisBC sent approximately 317 letters to individuals who contacted
the company. The responses were separated into categories, depending if the customer
requested more information about particularly aspects of the proposed project, such as
perceived health concerns or privacy. All letters indicated several benefits, including mentioning
significant financial savings over the life of the project. The letter concluded by asking
customers to visit fortisbc.com/ami for the most recent developments in the project.
The company also sent out a news release on July 26, 2012 that included the benefits of the
project. Additionally during media interviews, FortisBC spokespeople make every effort to
communicate the benefits and cost savings.
In the open houses held in June 2011, FortisBC spoke to the benefits of the project on three
separate slides. Re: FortisBC open house presentation slide 7,8,9. The company also
discussed the cost and stated that the financial benefits of the project would pay for itself.
120.0 Reference: Other Proposed Rate Recovery Options
120.1 Has FortisBC considered other methods of rate recovery for the AMI program
such as:
• Reconcilable tariff riders,
• Customer surcharge mechanisms,
• Base-rate recovery opportunities,
• Reconcilable balancing account mechanisms (cost/benefits are tracked
and net amount is consolidated into rates periodically),
• Deferred cost recovery,
• Rate-basing of some capital investment,
• Linking rate proceedings to smart grid projects that have stimulus funding.