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

June 24, 2012
Charlotte Greenham
Manager, Revenue Protection and Special Projects
Fortis BC Inc.
Suite 100, 1975 Springfield Road
Kelowna, B.C.
V1Y 7V7
Dear Mrs. Greenham
Appendix BCUC IR1 86.1
Thank you for your request for an opinion with respect to the potential and probable
impacts of AMI deployment within the geographic area served by Fortis BC. I understand
that, more specifically, you would like my opinion to be structured in the following
manner:
Review the information and provide a written opinion as to the validity of the forecast in
light of current research on the subject of energy theft and the distribution of marihuana
production in British Columbia. The opinion should specifically address:
i. A prediction of changes in marijuana producer behaviour with only
BCHydro AMI deployment and also with FortisBC deployment (i.e.
what percentage will choose to steal versus pay for electricity).
ii. A prediction of the net change in the number of marihuana producers
at FortisBC with only BCHydro AMI deployment and also with
FortisBC deployment (i.e. what percentage will go off the FortisBC
grid).
iii. Reasoning to support the opinion.
iv. A specific comment on the validity of the financial model used in the
FortisBC AMI Application in view of the Consultant findings.
Prior to writing this opinion I have been provided with and have read and reviewed the
following documents: a 9 page document from Fortis BC titled 5.3.2, Theft Reduction; a
series of Excel tables from Fortis, Theft Benefit NPV, Probable Table, Potential Table,
Historical Files, Number of Lights; A Theft Deterrence Chart, June 25, 2012; a further set
of Excel files with titles, General BC Stats, Billing Costs, Monthly Billing Forecast,
Customer Service Costs, Meter Reading Costs, Meter Exchange Costs, Compliance
Exchanges, Remote Disconnects and Reconnects, Energy Costs, Meter List, Time of Use
Rates, Residential Load, Old Theft Reduction; Tab 3, Load and Customer Forecast, 2012-
2013, pages1 to 11; Response to BCUC Information Request No. 1, September 29, 2011,
pages 1 to 8, System Losses and Peak; Response to BCUC Information Request No. 2,
October 21, 2011, pages 1 to 8, Gross System Losses; Hydro One, Distribution Line
Loss, Filed August 15, 2007, pages 1 to 13.