INTERROGATORIES OF

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INTERROGATORIES OF Powered By Docstoc
					IN THE MATTER OF the Ontario Energy Board Act, 1998, S.O. 1998, c.15, Schedule B;

AND IN THE MATTER OF applications by electricity distribution companies for approval of
distribution rates for 2006.


                           GENERIC ISSUES
                             HEARING
                    RP-2005-0020 / EB-2005-0529


     Bluewater Power Distribution Corporation
          Responses to Interrogatories of

              ONTARIO ENERGY BOARD
                    Board Staff


                                           Bluewater Power Distribution Corporation
                                                                      P.O. Box 2140
                                                           855 Confederation Street
                                                              Sarnia, ON N7T 7L6

                                                                         Alex Palimaka
                                   Vice President Corporate Services & General Counsel
                                                   Telephone: (519) 337-8201 ext. 292
                                                             Facsimile: (519) 344-6094
                                               email: apalimaka@bluewaterpower.com
                                                     Bluewater Power Distribution Corporation
                                                                         Generic Issues Hearing
                                                     Responses to Interrogatories of Board Staff



                    RESPONSES TO INTERROGATORIES OF
                             OEB (Board Staff)



1. Smart Meters

Ref. Section 1: Overview pages 4 - 6

1. As stated “The total capital expenditure for smart meters in 2006 will be $500,000”.
   Please prepare an overview of the implementation plan to install the 2,500 smart
   meters and the ability of Bluewater Power to complete the installations.


Response

Bluewater Power will commence installation of the 2500 smart meters in late April of
2006. We anticipate installation of a minimum of 210 meters per month with completion
within 12 months, coinciding with the 2006 Rate Year.

Bluewater Power has gained knowledge on the installation of residential smart meters
from its 2005 Smart Meter Pilot. Based on that experience, we are confident that internal
staff will be able to perform the installations on time.




                                                                RP-2005-0020 / EB-2005-0529
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                                                    Bluewater Power Distribution Corporation
                                                                        Generic Issues Hearing
                                                    Responses to Interrogatories of Board Staff



2. Please provide a detailed schedule by each customer class for the 2006 smart meter
   implementation plan.


Response



                         2006 Total Number of
                       Customers to be Converted
Residential                   2,500
GS < 50 kW                        0
GS 50 to 200 kW                   0
GS >200 kW                        0
Total                         2,500




                                                               RP-2005-0020 / EB-2005-0529
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                                                      Bluewater Power Distribution Corporation
                                                                          Generic Issues Hearing
                                                      Responses to Interrogatories of Board Staff



3. Please provide a detailed calculation to support the average cost per smart meter to
   be $200.00.


Response

The average cost of $200 per meter was arrived at by taking the incremental cost based
on the best information available at the time of submission of our rate application, the
OEB Smart Meter Implementation Plan January 26, 2005 Appendix C-Costs, which
states at page 120:

   “…costs are expected to be about $250 per meter. Offsetting this is the cost of
   metering presently supplied. Survey data suggests that this cost is about $50 per
   residential customer.”




                                                                 RP-2005-0020 / EB-2005-0529
                                                                                  Page 4 of 5
                                                       Bluewater Power Distribution Corporation
                                                                           Generic Issues Hearing
                                                       Responses to Interrogatories of Board Staff



4. Please provide a detailed calculation to support the $125,000 in additional expenses
   required to implement and operate the 2,500 smart meters in 2006.


Response

As outlined in the pre-filed evidence at Section 1, page 4, under the heading entitled
“vi) Smart Meter Adjustment – Distribution Expense:” the annual cost of $125,000 is for
the operation of 3,250 smart meters, which represents the 750 smart meters installed in
2005 as part of the OEB approved CDM plan and the 2,500 smart meters proposed for
installation in 2006.

The annual expenses of $125,000 was determined using the best information available at
the time of submission, the OEB Smart Meter Implementation Plan January 26, 2005
Appendix C-Costs Table 2 Page 116. However, Bluewater Power was cognizant of the
fact that there would be diseconomies of scale in the first years. We also wanted to reflect
the fact that many of the costs are upfront costs that will be recovered over later years.

Therefore, our calculation doubled the OEB estimated total monthly O&M of $1.42
arrived at in Table 2 of the Implementation Plan and, for the purposes of this O&M
calculation only; we assumed all meters would be in place at the beginning of the rate
year. To further reflect the uncertainty of the market, we also included a $15,000
contingency.

Our Smart Meter installation plan is expected to be a 5 year program, and we would
anticipate a requirement at some point to record actual costs and adjust as required (as is
at issue in this proceeding).




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