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 54
FortisBC assumes that the question is in reference to the possibility of assessing fees on
electric utility smart networks for contribution to the Universal Service Fund (USF). The USF is
a fund that has been set up in the United States to ensure that advanced telecommunications
are generally available to facilities such as libraries, schools and health care offices. The fee is
levied against intra-state telecommunications providers.
FortisBC would like to clarify that it does not see this as a bandwidth risk but as a cost risk.
At this time FortisBC sees negligible risk of its AMI network being levied a system fee in Canada
for the following reasons:
• The purpose the USF fund was created for in the US is already covered under the
mandate of Industry Canada; and
• The intended target of the levy in the US is telecommunications service providers. With
respect to smart meter networks, utilities are not service providers, but end users.
Response:
31.3.1 If so, please explain.
Please refer to the response to BCUC IR1 Q31.3.
32.0 Reference: Project Description
Response:
Exhibit B-1, Tab 4.0, Sec. 4.1.3, pp. 46-49
Wide Area Network
Cost Effectiveness
“In remote areas where cellular coverage is not available, third party backhaul over
satellite is also a possibility. Although this solution is generally more expensive than the
other options noted above from both a capital and monthly perspective, it can be the
most cost-effective in certain locations.” (p.47)
32.1 Please provide an assessment of cost-effectiveness for the AMI over Satellite
infrastructure option compared to the Status Quo for those remote areas.