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

FortisBC, Inc.
Suite 100, 1975 Springfield Road
Kelowna, BC
V1Y 7P7
June 6, 2011
Attention: Ms. Michele Leeners
Vice President of Finance and Chief Financial Officer
Dear Ms. Leeners:
GANNETT FLEMING, INC.
Suite 277
200 Rivercrest Drive S.E.
Calgary, Alberta T2C 2X5
Office: (403) 257-5946
Fax: (403) 257-5947
www.gannettfleming.com
Pursuant to your request, we have conducted a depreciation study related to the
electric generation, transmission and distribution system of FortisBC, Inc. as of December
31, 2009. Our report presents a description of the methods used in the estimation of
depreciation and net salvage, the statistical analyses of service life and the summary and
detailed tabulations of annual and accrued depreciation.
The calculated annual depreciation accrual rates presented in the report are
applicable to plant in service as of December 31, 2009. The depreciation rates are based
on the straight-line method, the remaining life basis, using the average service life group
procedure. An annual review of the depreciation rates using the same estimates and
methods is recommended.
LEK/hac
Project: 053630
Respectfully submitted,
GANNETT FLEMING, INC.
LARRY E. KENNEDY
Director, Canadian Services
Valuation and Rate Division
A Tradition of Excellence
Appendix BCUC IR1 69.4