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)
43.0 Reference: Project Description
Response:
Information Request (IR) No. 1
Exhibit B-1, Tab 4.0, Sec. 4.3.5, p. 57
Project Risk and Mitigation
Submission Date:
October 5, 2012
Page 80
43.1 In financial terms, what is the impact on NPV and Rates of a delay in operational
benefits of the AMI Project (ie., meter reading, theft reduction, etc.) of six
months?
In this response, FortisBC assumes that the proposed AMI project is implemented as per the
preliminary project plan, but operational benefits are delayed by six months.
Delays in operational benefits related to meter reading, remote disconnect/reconnect, contact
centre, and theft reduction were included in the analysis.
The Company did not include meter exchanges or avoided cost benefits associated with
Measurement Canada compliance, since those benefits are realized by the installation of the
AMI meters.
See the table below for the financial impact of a six month delay in the realization of the stated
operational benefits:
AMI proposal (errata 1)
NPV ($000s)
6 month delay in
operational benefits
Meter Reading -$23,785 -$22,383
Remote
Disconnect/Reconnect -$5,466 -$5,158
Contact Centre -$441 -$410
Theft Reduction -$38,386 -$37,491
Project NPV -$17,629 -$14,992
44.0 Reference: Project Description
Exhibit No. B-1, Tab 4.0, Section 4.3.2, p. 59
Schedule