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)
Information Request (IR) No. 1
Submission Date:
October 5, 2012
Page 44
Thus, the specific point of delivery/interconnection is not related to the meter location or its
connections. For example, in cases of overhead residential services the conductors from the
service mast are installed and maintained by the customer; however, in cases of underground
services the service conductors are installed and maintained by the Company. In larger service
installations (greater than 300 volts), a disconnecting switch is required ahead of the meter; this
switch is installed and maintained by the customer. Thus in all three cases, the exact location
where the utility service conductors connect to the customer equipment varies. In recognition of
these ongoing requirements, FortisBC does not expect to change the point of interconnection
specified in its Electric Tariff.
28.0 Reference: Project Description
Response:
Exhibit No. B-1, Tab 4.0, Section 4.1.1, pp. 44-45 and Appendix C-1,
p. 39
Incentives
28.1 Provide the anticipated costs of the customer incentive per device.
Preliminary research indicated a price range of $80-$150 per In-Home Display (IHD) device.
The approved 2012-13 DSM Plan includes a nominal $50 incentive or up to half the cost, of
eligible IHDs. The net Customer Portion of Cost would be $40-$100 of the price range indicated
above.
Response:
28.1.1 How long does FortisBC require savings at 5.4 percent of annual energy
use to fully offset the customer incentive?
The Total Resource Cost Benefit/Cost (B/C) ratio of an IHD measure is calculated as 1.6, based
on a unit cost of $150. The Utility Cost Test B/C ratio is 4.2, with a simple payback of one year
on the $50 incentive paid to a customer.
The customer’s payback on their net IHD cost of $100 (after $50 DSM incentive) is
approximately 1.5 years, assuming the average usage per customer (UPC).