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

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future will follow a similar dispersion as that witnessed over the last number <strong>of</strong> years. As<br />

such the Iowa 50-R3 selected <strong>for</strong> this account provides a good fit to the historical retirement<br />

patterns and is considered to be reflective <strong>of</strong> the future retirements in this account.<br />

Account 355.00 – Transmission Poles, Towers and Fixtures, represents 6% <strong>of</strong> the<br />

depreciable plant studied. The retirements, additions and other plant transactions <strong>for</strong> the<br />

period 1960 through 2009 were analyzed by the retirement rate method. This account<br />

consists <strong>of</strong> the transmission, towers, poles, insulators and attachments, such as guy wires<br />

and anchors. In 2004, 380 km <strong>of</strong> 60Kv transmission lines was removed. Discussions with<br />

operating staff indicate that the account did experience a significant level <strong>of</strong> plant<br />

retirements over past few years due to required system improvements and upgrades <strong>of</strong><br />

aging plant. Management has indicated future builds and retirements will occur as needed<br />

but are not expected to be similar in number or significance as the past 3 years.<br />

There<strong>for</strong>e, the Iowa curve has shifted from 45-S2 to 50-R3 and is considered to be<br />

reflective <strong>of</strong> the estimated future retirement patterns.<br />

Appendix BCUC IR1 69.4<br />

Account 356.00 - Transmission Conductors and Devices, represents 6% <strong>of</strong> the<br />

depreciable plant studied. The retirements, additions and other plant transactions <strong>for</strong> the<br />

period 1960 through 2009 were analyzed by the retirement rate method. This account<br />

consists mainly <strong>of</strong> the Transmission conductor, and related material required <strong>for</strong> the electric<br />

transmission <strong>of</strong> electricity. As indicated in the original survivor curve as plotted at page IV-<br />

32, this account has witnessed a significant amount <strong>of</strong> retirement activity within the<br />

experience band analyzed. Retirements in this account have begun at a relatively early<br />

age and significantly increased in frequency at age 30 and continued at a high frequency<br />

through to age 50. Discussions with management and company staff indicate that further

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