EPCOR AMI Business Case

EPCOR AMI Business Case
Appendix A-19
EPCOR DISTRIBUTION & TRANSMISSION INC.
Capital Business Case and Engineering Study
Distribution Capital Tracker:
Advanced Metering Infrastructure
1.0
OVERVIEW
This multi-year process improvement project consists of the installation of an Advanced
1.
Metering Infrastructure (“AMI”) system to realize significant operational improvements and cost
savings that will be of substantial benefit to customers. Among other things, AMI technology
will replace EDTI’s currently used manual processes for reading and energizing/de-energizing
meters. AMI will provide a robust 2-way network to each metering end-point in EDTI’s service
area, enabling more efficient access to end-user information such as usage, voltage, tamper
detection and service interruption/restoration indication, coupled with the ability to remotely
manage such functions as service connections, service disconnections, load limiting and
firmware upgrades. This project is a key component in EDTI’s overall plan for prudent
deployment of smart grid technology.
2.0
PROJECT DETAILS AND ENGINEERING ANALYSIS
2.1
Project Description
2.
This project is a multi-year initiative (2014 – 2017) that will fully automate EDTI’s meter
reading function with the installation of an AMI system. EDTI proposes to implement the
project in two distinct phases, first constructing and testing the AMI network infrastructure
including collectors and all computer hardware and software necessary to process all meter
reading data (“Phase 1”) as well as the installation of approximately 10,000 meters to test the
system, and then deploying all meters over a period of two years (“Phase 2”). Phase 1 is
scheduled to be completed by the end of 2015 and the Phase 2 mass replacement of meters is
scheduled to be completed in 2016 and 2017.
3.
Since EDTI last applied for approval of an AMI project in 2010, EDTI has continued to
invest a significant amount of time reviewing AMI deployments in other jurisdictions in Canada
and the US, and visiting other Canadian utilities that have invested in AMI technology. EDTI
has incorporated key experience from other jurisdictions, in particular those in BC, Alberta,
Saskatchewan, and Quebec. EDTI has also carefully considered both the AUC Smart Inquiry
Report published in June 2011, and AUC Decision 2010-505 as it related to EDTI’s previously
proposed AMI project, to ensure its current proposal aligns with the Smart Grid Report findings
and the relevant findings of the Commission in Decision 2010-505. Summarized below are the
key factors that have been incorporated into EDTI’s business case and engineering study for this
project since it was applied for in 2010:
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1
2.1.1 Customer Communication Plan
4.
EDTI has been following deployments in other regions of Canada and the United States
and customer concerns exist regarding exposure to wireless radio frequency waves and the
security/privacy of their meter data. A key success factor commonly noted by utilities where
deployments have gone relatively smoothly is a strong communication plan that provides timely
and factual information to customers. EDTI concurs and has budgeted costs for a multi-faceted
customer communication plan that includes a mix of customer direct-delivery printed
information, newspaper advertising, website information, and live agent customer assistance
during the installation period.
2.1.2 Network Security and Customer Privacy
5.
As discussed in the Smart Grid Inquiry report, the collection, use, and disclosure of
personal information is regulated by three statutes that permit organizations to collect personal
information if they have either consent or legal authority. Further it states that collecting
organizations can then only use or disclose the information collected for the purpose for which it
was collected. EDTI fully subscribes to these principles and publishes its Privacy Policy for
Personal Information on its website (www.epcor.com). The Smart Grid report correctly notes
that AMI meters do not transmit any information that identifies the customer, only meter specific
data. AMI vendors have also listened to public concerns in relation to security of the meter
information transmitted and the potential for nefarious use of this information by unauthorized
individuals. In response, AMI systems are now designed with a full suite of security features
that mirror those of highly secure internet sites that offer e-commerce services. AMI systems
now include:

AES data encryption (128 or 256 bit) from the host control computer (located
securely within corporate firewalls) to the meter,


Secure Socket Layer (SSL) protocol for host applications,
Use of digitally signed certificates in field tools that require authentication at the
host control computer protecting meter access by un-authorized devices,

Digital certificates for authenticated messages (disconnects, firmware upgrades),

Local user authentication for access to the control computer to ensure access by
only utility authorized personnel,
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2

Digital authentication by the control computer of any Home Area Network
(HAN) devices connected to the meter to prevent unauthorized access to specific
meter data,
Firewall segmentation, and

Audit events for review of all servers, firewalls, and other device access/changes.

6.
EDTI takes its responsibility for the security of its systems and customer data very
seriously and EPCOR’s Corporate Services Information Systems personnel will work closely
with the AMI team in establishing a multi-layered security approach to mitigate all risks
associated with the ongoing operation of the AMI system.
2.1.3 Commitment to Standards and Interoperability
EDTI is well acquainted with efforts in the electric utility industry and by international
7.
standards bodies to specify appropriate standards for AMI systems. EDTI has actively
participated in the Smart Grid Standards committee of the Canadian Electrical Association
(“CEA”), which in turn has leveraged efforts by such bodies as the North American Electric
Reliability Council (“NERC”), the Institute of Electrical and Electronics Engineers (“IEEE”), the
American National Standards Institute (“ANSI”) and the U.S. National Institute of Standards and
Technology (“NIST”).
8.
Adherence to appropriate standards will ensure that EDTI’s AMI system design:

delivers required performance, including communication throughput, reliability
and security,

minimizes risks of obsolescence by enabling backward compatibility with older
devices, and by enabling meter firmware to be upgraded remotely, and

provides lasting value by maximizing longevity and minimizing cost through
interoperability with other standards-compliant components.
9.
EDTI’s AMI RFP will require that prospective systems comply with all required
standards, and where standards are not applicable, EDTI's RFP will require vendors to
demonstrate that any proprietary elements are field-proven.
2.1.4 AUC Decision 2010-505
10.
In October, 2010, the AUC issued Decision 2010-505 that included its findings on
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3
EDTI’s original AMI business case filed as part of EDTI’s 2010-2011 Application. The findings
included the following:

In the cost benefit analysis for the project, EDTI did not initially provide a net
present value analysis of the revenue requirement impact to customers, but only
an analysis from a cash flow perspective.

The forecast inflation rate of 3.5% across the analysis period was not reasonable
and if a significantly lower inflation rate (2%) was utilized, the net present value
of the benefits turned negative.

EDTI included quantitative benefits forecast to be realized by its affiliate EEAI,
and EEAI’s customers; however, the Commission noted that EDTI did not
provide an analysis of the any lost economies of scale incurred by EWSI as a
result of the implementation of AMI.

EDTI did not sufficiently account for differences in the complete life cycle
differences between existing meters and AMI meters.

EDTI’s business case had very little room for error in its underlying assumptions
and that changes in one of the assumptions could turn the projected benefit for
customers into a cost.

Finally, the regulatory framework for AMI infrastructure had not been finalized
and, in fact, the AUC had been ordered to inquire into and report on certain
matters relating to the Alberta Smart Grid.
The Commission felt that the
direction provided by the Government of Alberta in relation to the Alberta Smart
Grid Inquiry report could affect how EDTI implemented its AMI project.
11.
EDTI has considered these findings and incorporated the following changes to address
the concerns expressed by the Commission in Decision 2010-505:

To demonstrate the benefit of this project for EDTI customers, EDTI has included
a full analysis of the costs and benefits from a revenue requirement perspective, as
well as from a cash flow perspective.

EDTI retained Dr. David Ryan to analyze the project structure, and costs and
benefits, and to provide EDTI with his opinion as to a reasonable inflation
escalator. A copy of Dr. Ryan’s recommendation is provided in Appendix D.

In order to assess the economics of this business case, EDTI has limited the
analysis of the costs and benefits to those that have a direct impact on the EDTI’s
revenue requirement. Impacts to both EEAI and its customers, and EWSI and its
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4
customers are not included in the net present value of the revenue requirement
impact to EDTI customers.
2.2

To assess the potential for any lost economies of scale incurred by EWSI
customers, EDTI has discussed with EWSI its future needs for meter reading.
EWSI has advised that after EDTI has completed the automation of reading
electrical meters, EWSI plans to revert back to reading meters every second
month. EWSI expects that with the lower costs associated with less frequent
meter reads coupled with the continued efficiency from the deployment of RF
enabled water meters, meter reading costs for EWSI customers will remain at or
below current levels.

Recent changes in asset lives for meters have provided the opportunity to compare
the lifecycle of both conventional meters and AMI meters within the 20 year
analysis period of this business case. As part of its 2012 Application, EDTI
included a report by Gannett Fleming that recommended that the service life for
electromechanical meters be adjusted from 25 to 20 years, and that digital meters
be adjusted to 15 years. The recommended changes were approved in AUC
Decision 2012-272.

As discussed above, the DoE has provided clarity with respect to its policy on
mandating smart meter deployment in Alberta and has reaffirmed its support for
improvements in electricity consumption measurement and the modernization of
Alberta’s electricity grid. EDTI is proceeding on the basis that its decision to
acquire an AMI system to automate meter reading and associated meter processes
is consistent with Government policy in relation to smart meters.
Project Purpose and Engineering Justification
12.
As the owner of an electric distribution system and in compliance with Measurement
Canada regulations, EDTI must provide each metered site with a meter. EDTI must also provide
a replacement meter if an existing meter stops functioning or requires replacement under
Measurement Canada regulations.
13.
The federal Electricity and Gas Inspection Act requires that Measurement Canada
approved meters be installed for customer billing. The Act also mandates that meters be tested
and maintained in accordance with the regulations.
14.
This long term performance improvement project will result in substantial operational
improvements and significantly reduce operating costs over the life of the project.
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5
15.
Recent noteworthy developments relating to AMI that support EDTI’s decision to bring
this project forward for Commission approval at this time include the following:

Clarity in Government Policy. The Alberta Department of Energy (“DoE”)
released the Smart Grid Inquiry Report on June 1, 2011. In the announcement
letter dated June 1, 2011 from the Minster of Energy to EPCOR, the Minister
indicated that “the Government of Alberta does not intend to implement
mandatory requirements for smart meters” and that “this does not preclude
utilities from implementing smart meters on their own initiative”. The letter
further adds that the “Government will continue to promote improvements in
electricity consumption measurement and the modernization of Alberta’s
electricity grid”.
Technology investments (such as EDTI’s proposed
implementation of AMI) that provide long term operational benefits for the utility
and significant cost savings for the customer are clearly consistent with current
Government policy.

AMI technology has matured and meter prices have decreased significantly over
the past several years. Many utilities across Canada, North America, and the
world have implemented AMI technology to advance their grid intelligence and
provide long term savings for customers. The Institute for Electrical Efficiency
(“IEE”) reports that one in three American households now have an AMI meter
and by the end of 2015, that proportion will have climbed to one half. In Canada,
Quebec, Ontario, Saskatchewan, BC, and certain utilities in Alberta have
deployed or are in the process of deploying AMI systems. Since 2009, the large
demand for meters and large scale manufacturing capabilities have placed
significant downward pressure on meter prices and, as discussed in more detail
below, existing concerns with AMI system security have been addressed by
vendors.

Significant changes in Measurement Canada regulations regarding meter
compliance sample testing and meter replacements. In 2010, Measurement
Canada introduced new specification rules (termed S-S-06). Organizations, such
as EDTI, accredited to perform meter testing under the previous specification
LMB-GE-04 must conform to the new S-S-06 specification by January 1, 2014.
This new specification increases the number of sample meters to be pulled for
testing, reduces the time that meters may be left in service for groups that pass
testing and introduces provisions for financial penalties for failed meter groups.
The specification changes in S-S-06 require EDTI to evaluate the re-verification
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6
test results of each compliance group and withdraw marginal groups prior to
failure in order to avoid financial penalties. This is a substantial change from past
rules, which allowed re-verification and group life extension to occur until sample
failure, without penalty. These changes will have a large upward cost impact on
compliance sampling and meter replacement costs for EDTI’s existing meter
population over the next 20 years as the remaining inventory of electromechanical
meters approach the end of their operating lives. A full analysis of these costs is
provided in section 4.1 (Alternative 1 – Status Quo) below. Through the
implementation of AMI, the majority of these compliance sampling and meter
replacement costs will be avoided.
16.
This Business Case and Engineering Study demonstrates the prudence of implementing
AMI on EDTI's distribution system. A cost-benefit analysis is provided showing that the
benefits for customers of proceeding with AMI, including operating cost reductions for EDTI as
well as improved reliability of the distribution system, substantially outweigh the costs
associated with the project. In addition, while they have not been quantified and included in the
financial analysis, EDTI describes other benefits that will be made possible in the future through
the implementation of AMI.
2.3
Implications of Not Proceeding with This Project
17.
If EDTI does not proceed with the recommended alternative for this project, EDTI will
incur higher operating and capital costs to meet the new Measurement Canada specification S-S06, which will ultimately be borne by customers. In other words, EDTI will not be able to
achieve the cost reductions that AMI technology will facilitate, for the benefit of customers. As
described below, the cost savings are substantial, and will be enjoyed by customers over the
lengthy service life of the metering infrastructure proposed for this project.
2.4
Supporting Information
18.
The following supporting information is attached:

Attachment 1: Alternative 1 – Analysis Workbook


Attachment 2: Alternative 2 – Analysis Workbook
Attachment 3: Alternative 3 – Analysis Workbook

Attachment 4: Alternative 4 – Analysis Workbook

Attachment 5: Real Time Electricity Consumption Monitoring Study
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Appendix A-19
7
3.0
PROJECT SCHEDULE AND CAPITAL COST FORECAST
3.1
Project Schedule
19.
This multi-year project will be completed using a logical and prudent approach. EDTI
will publish a Request for Proposal (“RFP”) in 2014 for the evaluation and selection of an AMI
system vendor. Working in conjunction with the successful vendor, EDTI proposes to
implement the project in two distinct phases, first constructing and testing the AMI network
infrastructure (“Phase 1”), and then deploying all meters over a period of two years (“Phase 2”).
20.
Phase 1 will be completed in 2015 and will consist of:

Conducting a radio frequency (“RF”) propagation analysis to confirm the
complete design of the communications infrastructure necessary to transport the
data according to required functional specifications.


Completing a topology study to address EDTI’s topography and customer
densities, and to ensure the necessary redundancy and bandwidth capacity is in
place to achieve the required read transmissions.
Identifying suitable structures for deployment of collectors.

Deploying the AMI RF network infrastructure and head end control system.

Implementing all required interfaces to existing EDTI systems including its
Settlement and Tariff system (“STARS”), and Mobile Workforce Management
System (“MWFMS”).

Training key EDTI personnel as necessary to operate and maintain the AMI
system.
Deploying 10,000 meters to test the installed collection and network system to
confirm that the negotiated AMI system performance levels have been achieved.

21.
At the conclusion of Phase 1, EDTI will confirm the successful deployment of the AMI
communication infrastructure and seamless integration with existing EDTI applications. Once
confirmed, EDTI will commence the second phase of the project in 2016–2017, consisting of the
mass deployment of the remaining meters (approximately 360,000). The primary purpose of the
2-phase approach is to ensure that the installation of the AMI RF network and associated key
interfaces to EDTI systems are fully tested and functional prior to undertaking the mass
deployment of meters. Without confirming that the AMI system is meeting contracted
performance levels in Phase 1, the stress of installing up to 20,000 meters per month in Phase 2
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Appendix A-19
8
would otherwise introduce unnecessary risk to ongoing meter reading operations.
22.
Table 3.1-1 below outlines the project schedule at a high level:
Table 3.1-1
Meter Reading Automation Project Schedule
1
2
3
4
5
6
7
8
9
10
3.2
Costs
Vendor selection (RFP, evaluation, contract negotiation)
Develop change management/customer communication plans
Plan and deploy communications network
Integrate AMI system with EDTI systems
Training operational resources
Install 10,000 meters and verify system performance
Milestone: Decision to proceed with Phase 2
Execute customer communication plan
Mass replacement of meters (approx. 20,000 / month)
Project cleanup (hard to access meters etc.)
A
2014
X
X
B
2015
C
2016
D
2017
X
X
X
X
X
X
X
X
X
X
Forecast Methodology
23.
To assist in its forecast of capital costs for an AMI system, EDTI issued a Request for
Information (RFI) in May, 2012 requesting information from vendors capable of providing a
technology solution suitable for the EDTI service area. Specifically, vendors were asked to
provide costs for AMI system features that included:

Accurate and timely retrieval of consumption and demand readings that would
meet existing EDTI system requirements for tariff billing and load settlement
functions.

Voltage readings to support identification and analysis of customer electrical
service quality.
Recording and archiving of momentary outages to support identification and
analysis of electrical service concerns.


Outage Notification and Restoration to support improvements for management of
customer outage events.

Tamper and Theft Flags to identify situations where EDTI meters and/or service
lines have been tampered with, creating a potentially unsafe hazard or a bypass of
EDTI metering.

Remote connect/disconnect/load limiting capability to provide increased customer
service, and minimize confrontations with customers when de-energizing sites.

Interface to support future Home Area Network (HAN) requirements.
February 28, 2014
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9
24.
Vendors were also asked to provide complete project support costs for project
management, integration support, installation costs, training, software licensing, and ongoing
maintenance costs. To forecast EDTI resources required for the project, EDTI requested that
vendors provide comment on their expectations of EDTI to ensure a well-supported and
successful project.
25.
EDTI received nine responses. Of the nine responses, five were selected for evaluation
of pricing based on the completeness of each response, the respondent’s understanding of
EDTI’s requirements as reflected in the response, and the extent to which the proposed solution
in the response matched EDTI’s requirements. EDTI then calculated averages from the five
responses to estimate costs for its AMI system. EDTI notes that RFI responses were provided by
vendors to EDTI on a confidential and non-disclosure basis, for obvious competitive reasons.
In late 2013, EDTI contacted a certain number of the vendors to discuss the validity of
26.
the RFI pricing received in 2012 given that the pricing was now over one year old. The vendors
confirmed that the pricing estimates provided via the RFI remained accurate.
27.
3.3
System integration costs for this project were forecast based on:

Vendor supplied integration costs for their project services.

Cost estimates for EDTI’s AMI program management, business analysis, and
engineering support resources.

EPCOR Information Systems estimates for the installation and integration of the
AMI system software components with existing applications including tariff
billing and load settlement, outage management, and workforce management.
Cost Breakdown
28.
In Direction 19 of Decision 2010-505, the Commission directed EDTI to provide in its
business cases a break out of forecast costs into categories including, but not limited to,
capitalized customer and public consultation costs, salvage proceeds if applicable, materials,
labor, engineering, contractors, vehicles and allocated overhead. Table 3.3-1 provides EDTI’s
forecast costs broken out to these components:
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10
Table 3.3-1
2014-2015 Forecast Cost Summary
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
3.4
Costs
Opening CWIP
Capital Expenditures
Customer and Public Consultation
Materials/Others
Labour
Engineering
Contractor
Salvage Proceeds/Contributions
Vehicles
Allocated overhead
AFUDC
Total Capital Expenditures
Closing CWIP
Total Capital Additions (rows 1+12-13)
A
2014 F
-
B
2015 F
0.76
C
Total
0.00
0.05
0.09
0.01
0.54
0.00
0.00
0.04
0.03
0.76
0.76
0.22
5.29
0.51
0.04
3.01
0.00
0.00
0.54
0.03
9.63
10.39
0.22
5.34
0.60
0.05
3.55
0.58
0.06
10.39
10.39
Cost Minimization
29.
EDTI has taken and will continue to take a number of steps to minimize the costs
associated with this project. As discussed above EDTI has invested a significant amount of time
reviewing other AMI deployments and meeting with other utilities to gain knowledge from their
experiences. EDTI also engaged the services of a leading AMI consultant, Ms. Carolyn
Kinsman of Automated Communication Links Inc. to assist with the development of EDTI’s
business and technical requirements for an AMI system. EDTI has invited all AMI vendors and
meter installation contractors to provide detailed product presentations and EDTI’s meter shop
has analyzed and tested each major vendor’s AMI meter and system offering to gain knowledge
and insight prior to calling for and formally evaluating vendors’ proposed AMI solutions. To
mitigate risks to both the initial and ongoing project costs, EDTI will follow rigorous
procurement and project control practices that include:

Issuance of a formal RFI to obtain implementation cost estimates. As discussed
below, EDTI issued an RFI to acquire complete initial project and ongoing
operating cost estimates from vendors.

Engagement of EPCOR Information Services to perform a formal review of
integration requirements and estimation of costs to integrate the new AMI
systems with existing EDTI applications.
The development and issuance of a formal RFP to establish competitive pricing
for an AMI system.

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11


Rigorous control over project costs through a fixed price contract with the
successful bidder including a formal change control process to manage any
change to project scope, timeline, and deliverables.
The assignment of a dedicated project manager with proven large project
experience reporting to a Steering Committee with representation of senior EDTI,
Corporate IT, and vendor leadership to ensure any key changes and risks are
addressed in an appropriate and cost effective manner.
30.
In a similar vein, there are other types of key risks associated with this project, some of
which could have a significant impact on project costs. A summary of these risks and the
mitigation strategies employed by EDTI to address them are described below. EDTI continues
to be in contact and consult with other utilities that have implemented or are in the process of
implementing their AMI system to benefit from their experience in facing and mitigating project
risks and costs.
31.
Project Timing and Deployment Schedule: As discussed above EDTI will execute a
fixed price contract with the successful bidder that will include a project delivery schedule for
key activities and deliverables. The contract will address key requirements for resourcing
commitments and meter availability. EDTI’s RFP requirements will also ensure that the
successful vendor has met minimum mandatory criteria for sizable deployments in other North
American jurisdictions and as part of the due diligence process will be meeting with vendor
reference utilities.
32.
Privacy and Security of Data: As discussed above, EDTI takes customer privacy and
data security very seriously and will develop a multi-layered, end-to-end approach to ensure risks
associated with the privacy and security of customer data are mitigated with a combination of
available technology security tools, audit procedures, and appropriate authentication procedures.
EUI’s Corporate Services security team and privacy officer will be involved throughout the
project to provide oversight, and EUI’s internal audit department will test all procedures related
to the security and privacy of customer data.
33.
Technology Changes: As discussed above, EDTI is committed to the use of established
standards to minimize the risk of obsolescence and where standards are not applicable, EDTI’s
RFP will require that vendors demonstrate any proprietary elements are field-proven. EDTI will
also discuss these elements with vendor reference utilities to ensure that the proposed system
delivers a migration path to take advantage of potential future enhancements and changes in
technology.
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12
34.
Customer Awareness: This is the risk associated with customers having limited
awareness relating to the project, or not supporting the project, or having negative experiences
during the project. As discussed above, EDTI has mitigated this risk by including a budget for
deployment of a multi-faceted communications strategy to ensure customers have the necessary
awareness and information to understand the various aspects of the technology being deployed
including how the technology works, the benefits of meter reading automation, the concerns with
RF exposure and the security/privacy of their data.
35.
Information Technology: A portion of this project involves the installation of software
and hardware platforms and their integration with existing EDTI software applications. As with
all EPCOR capital Information Technology (“IT”) projects, costs to complete this project will be
minimized by using EPCOR’s standard project execution processes. EUI’s Major Capital Project
(“MCP”) group will provide a knowledgeable pool of internal resources dedicated to completing
IT projects within the company.
Procurement: In March 2012, EDTI issued an RFI to potential vendors and technology
36.
providers for indicative proposals. The intent of the RFI was to gather information from vendors
about supplier cost estimates for an AMI implementation. Responses to the RFI were also used
as a tool to identify the resources required from EDTI to ensure a successful deployment. The
RFI process was completed utilizing the internally approved EPCOR process for procurement
information. In late 2013 EDTI held several discussions with a couple of the vendors to confirm
that the 2012 cost estimates remained valid to ensure project cost estimates were as accurate as
possible.
37.
EDTI will use an RFP process to obtain competitive fixed bid pricing for vendor products
and services. The RFP will provide detailed requirements and guidelines that specify project
scope, objectives, mandatory and desirable functional and technical specifications, project
schedule, and the evaluation criteria that EDTI will use.
38.
Through the use of these formalized processes, additional risk mitigation is provided
through:

Assurance that the chosen solution will meet the minimum mandatory
requirements necessary to achieve the forecast benefits at the lowest overall cost.

Assurance that EDTI will have a full understanding of all technical aspects of the
proposed solution through the appropriate use of subject matter experts.
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13

4.0
Assurance that an objective, fair and equitable process is followed through the
involvement of members of EUI’s Supply Chain management team.
ANALYSIS OF POTENTIAL ALTERNATIVES
As discussed above, EDTI has incorporated into its analysis information acquired from
39.
studying the AMI deployments of other Canadian utilities. In 2011, EDTI visited Hydro
Quebec, Sask Power, and FortisAlberta, to discuss each utility’s AMI deployment program. In
addition to the opportunity to learn from the experiences of those utilities that were further down
the path in their AMI implementation, one of the key observations was that each used a 20 year
analysis period in their business cases to align with the expected replacement timeframe of the
system. More recently, BC Hydro has completed its AMI deployment, and also used a 20 year
analysis period. EDTI has incorporated a 20 year analysis period in this business case and
engineering study to assess the costs and benefits to customers in automation of its meter reading
function.
40.
EDTI evaluated 4 alternatives to automate its meter reading function.
1.
2.
3.
4.
Status Quo.
Implement an Automated Meter Reading (AMR) solution using drive-by
technology.
Implement AMI.
Implement an Automated Meter Reading (AMR) solution using a fixed network.
41.
Each of these alternatives is discussed further in the following sections.
4.1
Alternative 1: Status Quo
42.
Under Alternative 1 (Status Quo), EDTI would continue with its current practice,
installing AMR meters to support new growth and replacement meter needs. Continuing with
this approach would result in the gradual replacement of all non-AMR meters, over the next 20
years. EDTI estimates that it could possibly begin to implement some limited use of drive-by
technology in approximately 12-15 years as newer areas became saturated to the extent that
drive-by technology could supplant the need to walk in an area. In about 20 years, once all
meters in the heart of EDTI’s service area were replaced, EDTI could implement a full drive-by
solution.
February 28, 2014
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14
43.
The main benefit of this alternative is that the investment in meter capital to replace
EDTI’s meter population would span a 20 year period.
44.
The major drawbacks of this alternative are:

Customers would incur increased costs for compliance sampling and meter
replacement as EDTI would have to implement changes to comply with
Measurement Canada’s S-S-06 requirements beginning in 2014,

Customers would not benefit from lower costs enabled by the full automation of
meter reading and meter operational functions until all meters have been replaced.

Increasing safety concerns for EDTI meter readers required to enter customer
premises would continue for many years until all meters can be read from the
street or vehicle.

Increasing safety concerns for EDTI meter installers required to disconnect
customers’ electrical services for non-payment would continue
4.1.1 Cost/Benefit Analysis
45.
Table 4.1.1-1 provides a summary year by year breakdown of the capital expenditures,
operating costs, and net cash flow for Alternative 1. The incremental capital and operating costs
reflect the implementation of Measurement Canada’s S-S-06 specification beginning in 2014.
Table 4.1.1-1
Net Annual Cash Flow - Alternative 1
($ millions)
1
2
3
4
5
6
7
8
9
Description
AMI - Capital
Capital Costs
Capital Meter Replacements
Capital Overhead
Total Capital Costs
AMI - Operating
EDTI Operating Costs
GOV Meter Replacement
Compliance Sampling
EDTI Operating Costs
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
A
Calculation
B
2014
C
2015
D
2016
E
2017
F
2018
G
2019
H
2024
I
2029
J
2034
r1 x 6.0%
r1 + r2
(0.31)
(0.02)
(0.33)
(1.44)
(0.09)
(1.53)
(1.69)
(0.10)
(1.80)
(1.73)
(0.10)
(1.83)
(1.62)
(0.10)
(1.72)
(1.42)
(0.09)
(1.50)
0.43
0.03
0.45
(1.27)
(0.08)
(1.35)
(1.53)
(0.09)
(1.62)
r4 + r5
0.03
(0.32)
(0.29)
(0.43)
(0.46)
(0.89)
(0.51)
(0.63)
(1.13)
(0.37)
(0.69)
(1.07)
(0.58)
(0.55)
(1.13)
(0.55)
(0.35)
(0.90)
0.03
0.60
0.63
(0.80)
(0.42)
(1.22)
(0.75)
(0.17)
(0.92)
(0.62)
6.99%
($26.36)
(2.41)
(2.93)
(2.90)
(2.85)
(2.41)
1.08
(2.57)
(2.54)
r3 + r6
2014 F WACC
Note: Some totals appear incorrect due to rounding.
Note: A complete analysis can be found in the “Cash Flow” tab within the workbook provided in Appendix A-19 Attachment 1.
February 28, 2014
Appendix A-19
15
4.2
Alternative 2: Implement an AMR Solution using Drive-by technology.
46.
Under Alternative 2, EDTI would undertake a project to replace all remaining non-AMR
meters between 2014 and 2017 and implement a drive-by solution. The project would supplant
walking meter readers with vehicles driving through neighborhoods each outfitted with a
collection device. Meter reading data would continue to be collected on a monthly basis.
47.
48.
The main work activities to implement this solution are as follows:

Analyze the requirements for a drive-by solution including but not limited to
meter vendor options, required meter reading collection equipment, work
processes and supporting system changes,

Evaluate vendor options for data collection hardware, meter supply and
installation services,

Design and install system software changes to support automated interfaces with
installation vendor work management system,

Project management oversight, and

Change management to support
education/awareness programs.
reader
transition
and
public
The main benefits of this alternative are:



49.
meter
Installation of new meters would avoid a significant portion of the meter
compliance sampling, testing, and replacement costs that would otherwise be
required during the 20 year analysis period,
Customers would benefit much sooner from lower meter reading costs enabled by
the full automation, and
Safety concerns for EDTI meter readers required to enter customer premises
would be mitigated much sooner compared to the gradual AMR meter
deployment in Alternative 1.
The major drawbacks of this alternative are:

Customers would not benefit from cost reductions that automated meter energize
and de-energize processes as AMR meters do not have remote connect/disconnect
functionality,
February 28, 2014
Appendix A-19
16


Customers would not benefit from lower costs due to the reduction of interval
meter data line and troubleshooting costs as AMR meter communication
technology is not supported on interval meters,
The risk of stranding metering assets increases with time as the industry continues
to deploy AMI,

AMR systems do not support integration with Outage Management Systems
(OMS) that enable faster response and increased management of system outages,

AMR systems do not provide automated tamper detection and thus would require
physical meter inspections on an ongoing basis to ensure the ongoing safety and
integrity of meter installations,

As the frequency of meter readings would still be monthly, benefits in
Distribution operations and system planning functions enabled by frequent
intervals of consumption and voltage data could not be realized, and
Increasing safety concerns for EDTI meter installers required to disconnect
customers’ electrical services for non-payment would continue.

4.2.1 Cost/Benefit Analysis
50.
Table 4.2.1-1 provides a summary year by year breakdown of the capital expenditures,
operating costs, operating savings and net cash flow for Alternative 2.
February 28, 2014
Appendix A-19
17
Table 4.2.1-1
Net Annual Cash Flow - Alternative 2
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Description
AMI - Capital
Capital Costs
Initial Project - System Costs
Initial Project - Meter Costs
Initial Project - Other Costs
Capital Overhead
Capital Costs
Capital Benefits
Capital Benefits
Capital Overhead
Capital Benefits
NET AMI CAPITAL COSTS
AMI - Operating
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
EDTI Operating Benefits
NET AMI OPERATING
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
A
Calculation
B
2014
C
2015
D
2016
E
2017
(r1 - r3) x 6.0%
r1 + r2 + r3 + r4
(1.00)
(1.05)
(1.93)
(0.24)
(4.21)
(18.22)
(0.37)
(1.12)
(19.70)
(9.11)
(0.30)
(0.56)
(9.98)
r6 x 6.0%
r6 + r7
r5 + r8
2.25
0.14
2.39
(1.83)
2.15
0.13
2.28
(17.42)
(0.05)
r11 + r12
r10 + r13
r9 + r14
2014 F WACC
6.99%
$30.01
F
2018
G
2019
H
2024
I
2029
J
2034
2.21
0.13
2.35
(7.63)
2.10
0.13
2.22
2.22
1.73
0.10
1.83
1.83
1.12
0.07
1.19
1.19
1.08
0.06
1.14
1.14
1.13
0.07
1.20
1.20
(0.10)
(0.11)
(0.11)
(0.11)
(0.13)
(0.15)
(0.17)
1.53
1.53
1.48
0.99
1.94
2.92
2.82
1.59
1.79
3.38
3.27
2.35
2.14
4.50
4.39
2.42
1.20
3.62
3.51
2.79
0.60
3.39
3.26
3.22
1.62
4.84
4.69
3.72
0.32
4.03
3.86
(0.35)
(14.60)
(4.36)
6.61
5.34
4.45
5.83
5.06
Note: A complete analysis can be found in the “Cash Flow” tab within the workbook provided in Appendix A-19 Attachment 2.
4.3
Alternative 3: Implement AMI.
51.
Under Alternative 3, EDTI would undertake a multi-year project to select a vendor and
implement an AMI system in 2014 through 2017. The project would replace the majority of its
current meter population.
52.
The main work activities required with this alternative are:

Development and issuance a Request for Proposal (“RFP”) for the selection of an
AMI vendor,


Deployment of a network communications infrastructure to collect meter data,
Deployment of the AMI head end control system, and associated computer
hardware,

Implementing all required interfaces to existing EDTI systems including its
Settlement and Tariff system (“STARS”), Mobile Workforce Management
System (“MWFMS”), and Outage Management System (“OMS”),

Training of key EDTI personnel as necessary to operate and maintain the AMI
system,

Installation of AMI meters across EDTI’s service area, and
February 28, 2014
Appendix A-19
18

53.
The main benefits of this alternative are:


54.
Transition and change management costs for employees and customers alike.
Customers will benefit the most from this solution through the largest Net Present
Value reduction in the revenue requirement and a platform that will enable future
benefits from other Smart Grid initiatives such as Outage Management, asset
management, theft management, and voltage optimization,
Customers will benefit from the elimination of meter reading costs,

Installation of new meters will avoid a significant portion of the meter compliance
sampling, testing, and replacement costs that would otherwise be required during
the majority of the 20 year analysis period,

Customers will benefit from cost reductions in meter energize and de-energize
processes as AMI meters will have remote connect/disconnect functionality,

Customers will benefit from lower costs as the AMI system will support the
communication needs for the majority of interval meters thus eliminating the need
for the individual data lines currently required today to back haul interval meter
data,

Safety concerns for EDTI meter readers and meter installers required to enter
customer premises will be mitigated much sooner as opposed to the gradual AMR
meter deployment in Alternative 1.
The major drawbacks of this alternative are:

This alternative requires the largest capital investment.
4.3.1 Cost/Benefit Analysis
55.
In preparing this cost-benefit analysis, EDTI carefully reviewed each potential impact on
its capital and operating costs to ensure that all costs and quantifiable benefits were accurately
captured in this analysis. In this section, EDTI identifies and explains the costs and quantifiable
benefits that will be incurred in association with this project over a 20 year analysis period. Due
to the large number of years in the analysis period and the complexity of the information, EDTI
has abbreviated the tables provided in this section for ease of reference and understanding. EDTI
has provided a complete Excel workbook in Appendix A-19 Attachment 3 that contains each
table showing all years in the analysis period, complete with links to the data used in developing
each table.
February 28, 2014
Appendix A-19
19
56.
Table 4.3.1-1 provides a summary year by year breakdown of the capital expenditures,
operating costs, operating savings and net cash flow for Alternative 3.
Table 4.3.1-1
Net Annual Cash Flow – Alternative 3
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Description
AMI - Capital
Capital Costs
Initial Project - System Costs
Initial Project - Meter Costs
Initial Project - Other Costs
Ongoing Costs
Capital Overhead
Capital Costs
Capital Benefits
Capital Benefits
Capital Overhead
Capital Benefits
NET AMI CAPITAL COSTS
AMI - Operating
EDTI Operating Costs
Load Center/MDM Operations
Annual Software Licence Fees
WAN Fees
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
Distribution Operations
EDTI Operating Benefits
NET AMI OPERATING
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
A
Calculation
B
2014
C
2015
D
2016
E
2017
F
2018
G
2019
H
2024
I
2029
J
2034
(0.04)
(0.76)
(3.58)
(1.49)
(4.01)
(0.21)
(0.56)
(9.85)
(36.02)
(2.08)
(0.46)
(2.31)
(40.88)
(18.01)
(1.71)
(0.47)
(1.21)
(21.41)
(0.48)
(0.03)
(0.51)
(0.49)
(0.03)
(0.52)
(0.55)
(0.03)
(0.59)
(0.62)
(0.04)
(0.66)
(0.70)
(0.04)
(0.74)
(0.76)
2.18
0.13
2.31
(7.54)
2.15
0.13
2.28
(38.60)
2.21
0.13
2.35
(19.06)
2.10
0.13
2.22
1.71
1.73
0.10
1.83
1.31
1.21
0.07
1.28
0.70
1.78
0.11
1.89
1.23
0.30
0.02
0.32
(0.43)
(0.15)
(0.16)
(0.02)
(0.33)
(0.57)
(0.33)
(0.04)
(0.94)
(0.97)
(0.33)
(0.04)
(1.33)
(0.72)
(0.33)
(0.04)
(1.08)
(0.74)
(0.33)
(0.04)
(1.11)
(0.85)
(0.33)
(0.05)
(1.23)
(0.98)
(0.33)
(0.05)
(1.36)
(1.13)
(0.33)
(0.06)
(1.52)
0.13
1.54
1.67
1.34
1.52
2.55
0.03
4.11
3.17
4.07
3.38
0.12
7.57
6.24
5.32
4.13
0.17
9.61
8.53
5.49
3.30
0.17
8.96
7.86
6.44
3.04
0.20
9.67
8.45
7.56
4.58
0.23
12.37
11.01
8.90
3.32
0.26
12.47
10.95
(6.20)
(35.43)
(12.82)
10.24
9.16
9.14
12.23
10.53
(0.72)
(r1 : r4) x 6.0%
Sum (r1 : r5)
r7 x 6.0%
r7 + r8
r6 + r9
r11 + r12 + r13
r15 + r16 + r17
r14 + r18
r14 + r19
2014 F WACC
(0.76)
6.99%
$36.11
Note: A complete analysis can be found in the “Cash Flow” tab within the workbook provided in Appendix A-19 Attachment 3.
4.3.1.1 AMI Capital Costs
57.
As described above, EDTI developed capital cost estimates based on vendor RFI
responses. EDTI’s internal system integration cost estimates were based on a combination of
EDTI’s prior experience with similar large projects and vendor expectations of EDTI resourcing
to ensure a well-supported and successful project.
58.
Table 4.3.1.1-1 below provides a more detailed description and calculation of the capital
costs relating to the AMI system shown on row 6 of Table 4.3.1-1.
February 28, 2014
Appendix A-19
20
Table 4.3.1.1-1
AMI System Capital Costs
2014-2017
($ millions)
A
B
C
D
E
Description
Reference / Calculation
2014
2015
2016
2017
Escalation
2.9%
2.9%
2.9%
2.9%
AMI - Initial Project Capital Cost
1 Fixed Network - Initial Capital Cost
(1.22)
2 Fixed Network - Installation Capital Cost
(0.29)
3 Hardware - Network Control System
(0.45)
4 Software - Network Control System
(1.63)
5 Meters
(1.18)
(28.63)
(14.31)
6 Meters - Installation
(0.31)
(7.40)
(3.70)
7 Project Integration - EPCOR Resources
(0.72)
(2.28)
(0.96)
(0.59)
8 Project Integration - AMI Vendor Resources
(1.52)
(0.90)
(0.90)
9 Customer Awareness Program
(0.22)
(0.22)
(0.23)
10 AMI - Initial Project Capital Cost
Sum (r1 - r9)
(0.72)
(9.09)
(38.10)
(19.73)
AMI - Fixed Network Growth
11 Power Meter Inventory (Mid Year)
2013 A: 357,741
365,254
372,924
380,755
388,751
12 Fixed Network Cost ($ per Meter)
(r1 + r2) / r11
0.00
(4.03)
(4.15)
(4.27)
13 Annual Increase in Meters
2.1% (2011-2013 Actual)
0
7,670
7,831
7,996
14 Realization Factor (%)
0
0
100
100
15 Fixed Network - Growth Capital Cost
r12 x r13 x r14
(0.03)
(0.03)
Incremental AMI Meter Cost Growth
16 New Power Meters Forecast
2.1% (2011-2013 Actual)
0
7,670
7,831
7,996
AMI Meter Premium
17
0.00
(54.74)
(54.74)
(54.74)
($ per Meter)
18 Realization Factor (%)
0
50
100
100
19 Incremental AMI Premium - Growth
r16 x r17 x r18
(0.21)
(0.43)
(0.44)
AMI - Total Capital Cost
20 Total AMI Capital Cost
r10 + r15 + r19
(0.72)
(9.30)
(38.56)
(20.20)
21 Capital Overhead
r20 x 6.0%
(0.04)
(0.56)
(2.31)
(1.21)
22 Total AMI Capital Cost incl. OH
r20 + r21
(0.76)
(9.85)
(40.88)
(21.41)
Note: A complete analysis can be found in the “EDTI Capital” tab within the workbook provided in Appendix A-19 Attachment 3.
59.
EDTI utilized vendor RFI responses to determine the cost estimates for the AMI project
costs (rows 1 – 8), and has included costs for a comprehensive Customer Awareness Program
(row 9) to ensure customers are provided with timely information relating to the project. The
capital expenditures forecast for 2014 (column B, row 7) reflect the activities required to publish
an RFP and select a vendor for deployment. The capital expenditures forecast for 2015
(column C, rows 1 - 9) reflect the completion of the Phase 1 activities described above. Forecast
expenditures in 2016 and 2017 (columns D and E, rows 1 – 9) include the completion of the
Phase 2 activities described above.
60.
To account for the cost of ongoing fixed network expansion after the initial deployment
in 2015, EDTI has forecast capital expenditures (row 15) based on an average cost per meter for
the initial fixed network (row 12) multiplied by the annual growth in power meters (row 13).
February 28, 2014
Appendix A-19
21
61.
The incremental capital cost of AMI meters (over the current conventional meters
purchased) to support growth in 2015 and beyond is shown in columns C – E, row 19. The
annual growth percentage in power meters has been forecast (row 13) using the average annual
growth in power meters experienced from 2011 to 2013.
4.3.1.2 AMI Operating Costs
62.
Table 4.3.1.2-1 below provides a more detailed description and calculation of the costs
relating to the ongoing operation of the AMI system as shown on row 14 of Table 4.3.1-1.
Table 4.3.1.2-1
AMI System Operating Costs
2014-2017
($ millions)
1
2
3
4
5
6
7
8
Description
Escalation
AMI Load Center/MDM Operations
Salary & Benefits - AMI Operator
Salary & Benefits - Transition Support
Salary & Benefits - Field Support
Salary & Benefits - IT Support
FTE Requirements - AMI Operators
FTE Requirements – Transition Support
FTE Requirements - Field Support
FTE Requirements - IT Support
9
AMI Load Centre Operations Cost
A
Reference / Calculation
B
2015
2.9%
C
2016
2.9%
D
2017
2.9%
E
2018
2.9%
2013 T2 Position
2013 A3 Position
2013 Meter Installer Position
2013 IT2 Position
(0.12)
(0.09)
(0.12)
(0.13)
1.00
0.00
0.00
0.25
(0.12)
(0.09)
(0.12)
(0.14)
2.00
3.00
0.00
0.50
(0.12)
(0.09)
(0.13)
(0.14)
3.00
3.00
2.00
0.50
(0.13)
(0.09)
(0.13)
(0.14)
3.00
0.00
2.00
0.50
(r1 x r5) + (r2 x r6) +
(r3 x r7) + (r4 x r8)
(0.15)
(0.57)
(0.97)
(0.72)
Software Licence Fees
10 Software Licence Fees
(0.33)
(0.33)
(0.33)
(0.33)
11 Realization Factor (%)
50
100
100
100
12 Software Licence Fees
r10 x r11
(0.16)
(0.33)
(0.33)
(0.33)
Wide Area Network (WAN) Fees
13 Cellular Backhaul Rental
(0.04)
(0.04)
(0.04)
(0.04)
14 Realization Factor (%)
50
100
100
100
15 Total WAN Fees
r13 x r14
(0.02)
(0.04)
(0.04)
(0.04)
Total AMI Operating Cost
16 Total AMI Operating Cost
r9 + r12 + r15
(0.33)
(0.94)
(1.33)
(1.08)
Note: A complete analysis can be found in the “EDTI Operating” tab within the workbook provided in Appendix A-19
Attachment 3.
63.
Based on the RFI vendor responses and EDTI’s discussions with other utilities EDTI is
forecasting a total of 5.5 FTEs to provide ongoing operations support for the AMI system. Three
operators and two field support resources will be required to manage the daily operation of the
AMI system once the majority of the deployment has been completed in 2017. During the Phase
2 meter deployment in 2016 and 2017, EDTI is forecasting the need for 3 temporary FTEs to
support data analysis and cleanup during the transition. EDTI has received advice from vendors
and other utilities to expect the need for additional resources to address transition issues related
February 28, 2014
Appendix A-19
22
to the meter deployment.
64.
EDTI will also require 0.5 FTE of IT support for the AMI computer applications and new
interfaces with existing EDTI applications. EDTI plans to train two resources from its Interval
Load Center to manage the daily operations of the AMI system and one data validation analyst
from the Meter Reading Validation area. As discussed below, workload for these two areas is
forecast to be dramatically reduced or eliminated and these three resources will be retrained and
re-deployed as AMI operators. Field support for diagnostic investigation and repair of the AMI
field network will be provided through re-training of selected meter installer personnel no longer
required to fulfill energize and de-energize work.
65.
The annual Load Center operations cost (row 7) is calculated by multiplying the forecast
FTE requirements (row 4 – 6) by the annual salary and benefits for each of the required positions
(rows 1 – 3). Annual salaries were forecast by escalating the 2013 CSU 52 rates for each
position by the annual 2.9% escalation factor.
Annual license support fees for the AMI head end control and meter data management
66.
applications (row 10) were forecast based on cost estimates provided by vendor responses to
EDTI’s RFI. These fees are forecast to begin with the initial installation of the network in mid2015.
67.
An ongoing Wide Area Network (WAN) fee for communication between EDTI’s
networks and the collectors (row 11) was estimated based on the use of digital wireless
communications for 30% of the collectors. RFI responses from vendors reflected the installation
of a minimum of 70% of the collectors at EDTI substation facilities where existing EDTI
networks are available, minimizing the need to lease public carrier bandwidth for purposes of
back hauling data.
4.3.1.3 AMI Benefits
68.
As discussed above, EDTI limited its financial analysis of the costs and benefits to those
that have a direct impact on EDTI’s revenue requirement. The forecast benefits relating to
reductions in capital spending requirements, and the forecast benefits in each of three operating
categories (meter reading, meter operations, and distribution operations) are described in more
detail below.
February 28, 2014
Appendix A-19
23
Capital Reductions
69.
Table 4.3.1.3-1 below provides a detailed description and calculation of the reductions in
capital expenditures relating to metering equipment, distribution cable repair, and meter
replacements shown on row 9 of Table 4.3.1-1 above.
Table 4.3.1.3-1
Distribution Capital Benefits
2015-2018
($ millions)
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
F
2018
2.9%
5,660
68
0.00
0.00
0
5,824
5,993
6,166
6,345
0.18
0.18
55
0.18
0.36
0
0.18
0.54
0
0.19
0.73
0
16,599
2,632
336
280
19,618
383
432
784
11,355
5,155
1,381
576
18,946
682
360
748
1.86
2.15
2.21
2.10
Realization Factors (%)
100
100
100
Meter Capital Replacement Reduction
1.86
2.15
2.21
AMI - Total Capital Benefit
18
Total AMI Capital Benefit
r6 + r17
0.00
2.18
2.15
2.21
19
Capital Overhead Rate (%)
r18 * 6.0%
0.13
0.13
0.13
20
2.31
2.28
2.35
Total AMI Capital Benefit incl. overhead
r18 + r19
0.00
Note: A complete analysis can be found in the “EDTI Capital” tab within the workbook provided in Appendix A-19 Attachment 3.
100
2.10
Description
7
8
9
10
11
12
13
14
Escalation
Replacement of FC200 Handheld Devices
Escalated Cost ($ per Device)
Estimated Meter Readers (start of 2014)
Meter Reader FTE Increase Due to Growth
Cumulative Meter Reader FTE Increase
Large-Scale Major Device Replacement
Capital Benefit - Not Replacing FC200
Devices
Meter Capital Replacements
Single Phase Meters - (Cost per Meter)
Network Meters - (Cost per Meter)
Polyphase Meters - (Cost per Meter)
Demand Meters - (Cost per Meter)
Single Phase Meters - (Meter Quantity)
Network Meters - (Meter Quantity)
Polyphase Meters - (Meter Quantity)
Demand Meters - (Meter Quantity)
15
Meter Replacements - Capital Costs
1
2
3
4
5
6
16
17
A
Reference / Calculation
Table 4.3-5 r9
4:1 Spare (25%)
r1 x r5
$76.17
$126.21
$236.80
$644.27
(r7 x r11) + (r8 x r12) +
(r9 x r13) + (r10 x r14)
0.32
2.10
0.13
2.22
70.
EDTI replaces its handheld meter reading devices (currently FC200SR model) every 6 –
8 years. As replacement of the handhelds was last completed in 2007 and 2008, EDTI is
reflecting a reduction in forecast capital expenditures for this equipment in 2015, 2023, and 2031
(row 6). The annual cumulative Meter Reader FTEs (each reader requires a hand-held device)
required to keep pace with growth (row 4) are added to the 68 Meter Reader FTEs forecast for
the beginning of 2014 (row 2) and increased by 25% for the spare devices required in each of the
years 2015, 2023, and 2031 (row 5). EDTI maintains an inventory of spare devices based on one
spare device for each 4 meter readers. Spare devices are required when other devices fail,
require repair, or have battery failure in extremely cold temperatures. The capital benefit
February 28, 2014
Appendix A-19
24
obtained from not having to replace the handheld devices is determined by multiplying the
number of required devices (row 5) by the unit cost of each device escalated by 2.9% annually.
71.
As discussed above, changes to meter compliance testing and replacements introduced by
Measurement Canada’s S-S-06 regulation will have large cost impacts on utilities including
EDTI. In order to fully understand the impacts of this regulation change, EDTI prepared a 20
year analysis of its meter compliance testing and meter replacement program for both status quo
and AMI implementation scenarios. The full analysis is provided in the “EDTI Operating” tab of
the spreadsheet provided in Appendix A-19 Attachment 3. To calculate the capital cost benefit
for meter replacements, EDTI multiplied the replacement cost of each conventional meter type
(rows 7 - 10) by the quantity of meters representing the difference between the status quo and an
AMI implementation (rows 11 - 14) to determine the total capital cost benefit forecast (row 15)
to be realized beginning in 2015. EDTI is forecasting to realize benefits by 2015 as it will apply
to Measurement Canada for dispensation from its compliance sampling program given the fact
that EDTI would be undertaking a full replacement of meters in the near term.
Meter Reading Operations
72.
The implementation of AMI will allow EDTI to read meters remotely, which will in turn
obviate the need for manual meter reading in EDTI’s service area. AMI will also reduce
validation costs for both cumulative and interval meters. The cost savings reflected in row 16 of
Table 4.3-1 includes EDTI’s estimated yearly costs over the NPV period for:

Manual meter reading. This includes all EDTI costs associated with the current
process of manually reading cumulative meters.

Meter reading validation. This includes EDTI costs for validation of cumulative
meter reads. Validation of these readings will be included as part of the new Load
Center operations costs shown on row 7 of Table 4.3-1 above.

Meter Reading validation – interval. EDTI has also included the reduction of
communication costs and FTE savings associated with the transition to AMI of
approximately 1600 interval metered accounts currently read via the MV-90
system.
73.
Table 4.3.1.3-2 below provides a more detailed description and calculation of the meter
reading operations benefits shown on row 15 of Table 4.3.1-1.
February 28, 2014
Appendix A-19
25
Table 4.3.1.3-2
Meter Reading Operations Benefits
2014-2018
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Description
Escalation
Meter Reading Operations
Meter Reading - Cumulative
Charges to EWSI
Realization Factor (%)
Meter Reading Operations Benefit
New Meter Readers (Site Growth)
New Site (Meter) Growth Rate (%)
Power Meter Inventory (Mid Year)
New Power Meters Forecast
Meter Reader Average Read Rate per Year
Meter Reader FTE Increase Due to Growth
Cumulative Meter Reader FTE Increase
New Meter Reader Salary
New Meter Reader Salary Due to Growth
Realization Factor (%)
New Meter Readers (Site Growth) Benefit
Meter Reading Validation - Cumulative
Meter Data Management Budget
Charges to EWSI
Realization Factor (%)
Meter Reading Validation - Cumulative Benefit
Meter Reading Validation - Interval
Interval Meter Data Line Costs
Interval Meter Data Line Savings
Realization Factor (%)
Interval Meter Data Line Savings
Meter Technician Salary & Benefits
Meter Tech FTE Reduction
Meter Technician Savings
Meter Reading Validation - Interval Benefit
MVRS Support Cost Savings
MVRS Annual Support Costs
Realization Factor (%)
Total MVRS Support Cost Benefit
Meter Reading Transition Allowance
Total Meter Reading Operations Benefit
A
Reference /
Calculation
2013 A : $6.21
2013 A: $2.84
(r1 + r2) x r3
2013 A: 357,741
r5 x r6
(r7 x 12) / r8
r10 x r11
r12 x r13
2013 A: $0.33
2013 A: $0.15
(r15 + r16) x r17
2013 A: $0.75
r19 x 1,600 / 1,873
r20 x r21
2012 - T2 Position
r23 x r24
r22 + r25
2013 A
r27 x r28
B
C
D
E
F
2014
2.9%
2015
2.9%
2016
2.9%
2017
2.9%
2018
2.9%
6.39
(2.92)
0
6.58
(3.00)
0
6.77
(3.09)
30
1.10
6.97
(3.18)
80
3.03
7.17
(3.27)
100
3.90
2.10
365,254
7,513
520,755
0.00
0.00
0.08
0.00
0
2.10
372,924
7,670
520,755
0.18
0.18
0.08
0.01
100
0.01
2.10
380,755
7,831
520,755
0.18
0.36
0.08
0.03
100
0.03
2.10
388,751
7,996
520,755
0.18
0.54
0.08
0.05
100
0.05
2.10
396,915
8,164
520,755
0.19
0.73
0.09
0.06
100
0.06
0.34
(0.15)
0
0.35
(0.15)
0
0.36
(0.16)
30
0.06
0.37
(0.16)
80
0.17
0.38
(0.17)
100
0.21
0.77
0.00
0
0.79
0.68
0
0.00
0.12
1.0
0.12
0.12
0.82
0.70
30
0.21
0.12
2.0
0.24
0.45
0.84
0.72
80.0
0.57
0.12
3.0
0.37
0.95
0.86
0.74
100.0
0.74
0.13
3.0
0.39
1.12
0.02
0
0.02
0
0.02
0
0.00
0.00
(0.13)
0.02
50
0.01
(0.13)
0.02
100
0.02
0.00
0.11
0.0
0.00
r4 + r14 + r18 +
0.00
0.13
1.52
4.07
5.32
r22 + r26 + r29 + r30
Note: A complete analysis can be found in the “EDTI Operating” tab within the workbook provided in Appendix A-19 Attachment 3.
31
Total Meter Reading Operations Benefit
74.
The annual savings benefit in manual meter reading costs (row 4) were determined by
first taking EDTI’s 2013 Forecast Meter Reading – Cumulative cost (row 1) and then escalating
it by the 2.9% escalation factor. Similarly, EDTI’s forecast charges to EWSI for water meter
reading services (row 2) were escalated using the same escalation factor. As reflected in the
table, the analysis reflects EDTI’s expectation that the net manual meter reading operating cost
reductions (row 1 minus row 2) will be realized in a graduated manner over the three year AMI
implementation period as existing meters are replaced with AMI meters. The portion of the
February 28, 2014
Appendix A-19
26
benefit expected to be realized annually is shown in row 3, and the annual realized Meter
Reading operating benefit is shown on row 4.
75.
Absent AMI, EDTI would be required to add meter reading FTEs over time to deal with
growth of power meters on its system. To calculate the FTE impact and associated salary and
benefit costs, EDTI first determined the number of new power meters (row 7) for each year by
multiplying the average annual growth % for the three year period 2011 through 2013 (row 5) by
the mid-year actual power meter inventory of 357,741 in 2013 (row 6). The number of new
power meters (row 7) was then multiplied by 12 (months) and divided by the average annual
read rate for a meter reader (row 8) to determine the annual FTE increase required to keep pace
with the growth (row 9). The annual cumulative FTE increase (row 10) is multiplied by the
average meter reader salary and benefit cost escalated by the 2.9% escalation factor (row 11) to
determine the annual salary and benefit increase necessary due to growth (row 12).
As discussed above, EDTI’s Meter Reading Validation costs will be included in the new
76.
Load Center Operations area (row 12 in Table 4.3-1) and, as such, EDTI’s costs relating to the
current Meter Reading Validation – Cumulative will be eliminated. For ease of reference, the
2013 actual cost for this area is shown in column A of row 15. This cost is escalated by the 2.9%
escalation factor for subsequent years. EDTI’s annual cost for meter reading validation shown
on row 17 is then calculated by subtracting EDTI’s annual charges to EWSI (row 16) from the
forecast cost (row 15). As reflected in the table, the analysis reflects EDTI’s expectation that the
net Meter Reading Validation operating cost reductions (row 15 minus row 16) will be realized
in a graduated manner over the three year AMI implementation period. The portion of the
benefit expected to be realized annually is shown in row 17, and the annual realized Meter
Reading Validation operating benefit is shown on row 18.
77.
The implementation of an AMI system will allow EDTI to discontinue the use of a large
number of its approximately 1,873 interval meters currently in use on its system, and eliminate
the costs for the associated individual data lines. EDTI estimates that 1,600 of these meters (i.e.,
those under 600 kVA) can be replaced with AMI meters. EDTI also estimates that three of the
four technicians currently required to deal with interval meters on its system will be eliminated,
and as discussed above two of these positions will be re-trained to operate the AMI system.
78.
The forecast annual cost for the 1,600 data lines (row 20) was calculated by multiplying
the total annual cost for interval meter data lines costs (row 19) by the number of meter lines
(1,600 / 1,873) forecast to be eliminated. As reflected in the table, the analysis reflects EDTI’s
expectation that the replacement of interval meters with AMI meters will occur in a graduated
February 28, 2014
Appendix A-19
27
manner over the three year AMI implementation period. The annual realized savings as a result
of interval meter reduction (row 22) is calculated by multiplying the forecast annual cost for
1,600 data lines (row 20) by a realization factor (row 21) that reflects the timing of the interval
meters replaced.
79.
Meter technician savings (row 25) are calculated by multiplying the annual salary and
associated benefits for a meter technician FTE (row 23) by the number of FTEs forecast to be
eliminated (row 24).
80.
MVRS, a system used to manage the uploading of route information and the download of
meter readings from EDTI meter reading hand held devices, will no longer be required in mid2017. The benefit associated with the elimination of the MVRS support costs is based on the
actual costs for 2013, escalated by 2.9% each subsequent year (row 27).
Meter Operations
81.
As the cost of implementing the AMI system includes the cost associated with replacing
all meters in EDTI’s service area, EDTI will realize reductions in costs related to both meter
compliance sampling and the labor required to perform necessary meter replacements. Further
savings are forecast through the elimination of the majority of field visits and labor associated
with service reconnections, disconnections, and the installation/removal of load limiters given
the cost of the AMI meter includes the remote connect/disconnect switch. As discussed above,
EDTI will be replacing 1,600 interval meters with AMI meters reducing monthly communication
costs. Additional savings will be realized in Meter Operations for activities relating to the
communications troubleshooting costs associated with these meters.
82.
Table 4.3.1.3-3 below provides a more detailed description and calculation of the meter
operations reductions shown on row 16 of Table 4.3.1-1.
February 28, 2014
Appendix A-19
28
Table 4.3.1.3-3
Meter Operations Benefits
2014-2017
($ millions)
9
10
11
12
Description
Escalation
Compliance Sampling
UNIT RATES
Compliance Sampling Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
STATUS QUO
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
13
Compliance Sampling Cost ($)
14
15
16
17
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
18
Gov Meter Replacements Cost ($)
19
20
21
22
AMI DEPLOYMENT
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
23
Compliance Sampling Cost ($)
24
25
26
27
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
28
Gov Meter Replacements Cost ($)
1
2
3
4
5
6
7
8
29
30
31
32
33
34
35
36
STATUS QUO minus AMI DEPLOYMENT
Compliance Sampling Savings ($)
Gov Meter Replacement Savings ($)
Realization Factor (%)
Total Compliance Sampling and Meter
Replacement Benefit
Energize & De-Energize
Energize & De-Energize Cost
200A Services (%)
Energize & De-Energize Cost (200A)
Realization Factor (%)
February 28, 2014
A
Calculation
3 year average (2011-2013)
89.79
87.72
211.91
645.01
3 year average (2011-2013)
31.33
20.48
14.67
151.37
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
F
2018
2.9%
92.39
90.26
218.06
663.72
95.07
92.88
224.38
682.96
97.83
95.58
230.89
702.77
100.67
98.35
237.58
723.15
103.59
101.20
244.47
744.12
32.24
21.07
15.10
155.76
33.17
21.69
15.53
160.28
34.14
22.31
15.98
164.92
35.13
22.96
16.45
169.71
36.14
23.63
16.92
174.63
5,675
1,300
560
400
4,510
765
720
1,120
3,845
2,225
1,040
960
3,745
1,120
800
1,360
1.06
1.47
1.55
1.71
13,194
1,982
1,368
0
16,912
0
0
0
9,432
4,265
861
0
17,261
290
0
0
0.50
0.58
0.44
0.63
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.00
0.00
0.00
0.00
0
0
1,368
0
0
0
0
0
0
0
0
0
0
0
0
0
0.02
0.00
0.00
0.00
1.06
0.48
100
1.47
0.58
100
1.55
0.44
100
1.71
0.63
100
1.54
2.04
1.99
2.34
1.56
1.61
1.65
1.70
1.75
1.48
0
1.53
0
1.57
30
1.62
80
1.66
100
(r1 x r9) + (r2 x r10) +
(r3 x r11) + (r4 x r12)
(r5 x r14) + (r6 x r15) +
(r7 x r16) + (r8 x r17)
(r1 x r19) + (r2 x r20) +
(r3 x r21) + (r4 x r22)
(r5 x r24) + (r6 x r25) +
(r7 x r26) + (r8 x r27)
r13 – r23
r18 – r28
0.00
0.00
0
(r29 + r30) x r31
2013 F
95
r33 x r34
Appendix A-19
29
A
B
C
D
E
Description
Calculation
2014
2015
2016
2017
37 Energize & De-Energize Benefit
r35 x r36
0.47
1.29
Interval Meter Troubleshooting
38 Labour Cost
2012 A - $0.11
39 Vehicles Costs Incurred
2012 A - $0.02
40 Total Labour & Vehicles Cost
r38 + r39 (escalated)
0.13
0.13
0.14
0.14
41 Replaced Interval Meters
r40 * (1,600 / 1,873)
0.11
0.12
0.12
0.12
42 Realization Factor (%)
0
0
30
80
43 Interval Meter Troubleshooting Benefit
r41 x r42
0.04
0.10
Total Meter Operations Savings
44 Total Meter Operations Savings
r32 + r37 + r43
1.54
2.55
3.38
Note: A complete analysis can be found in the “EDTI Operating” tab within the workbook provided in Appendix A-19 Attachment 3.
F
2018
1.66
0.15
0.13
100
0.12
4.13
83.
The cost of implementing AMI includes the replacement of all meters on EDTI’s system
and as such EDTI’s compliance sampling program will be significantly affected. EDTI prepared
a 20 year analysis of its meter compliance testing and meter replacement program for both status
quo and AMI implementation scenarios. The full analysis is provided in the “EDTI Operating”
tab of the spreadsheet provided in Appendix A-19 Attachment 3. To calculate the operating
reductions for compliance sampling and meter replacements, EDTI compared the costs for each
of two scenarios: 1) continuing with manual meter reading (“Status Quo”), and (2) undertaking
the proposed AMI deployment (“AMI Deployment”).
To determine the costs for compliance sampling under the Status Quo scenario (row 13),
84.
the unit costs (rows 1 – 4) were multiplied by the forecast number of meters to be sampled within
each meter type (row 9 – 12). Likewise under the AMI Deployment scenario, the cost for
compliance sampling (row 23) was determined by multiplying the unit cost (rows 1 – 4) by the
forecast number of meters to be sampled within each meter type (rows 19 – 22). The net benefit
to customers (row 29) was determined by subtracting the AMI Deployment scenario cost
(row 23) from the Status Quo scenario cost (row 13).
To determine the costs for meter replacements under the Status Quo scenario (row 18),
85.
the unit costs (rows 1 – 4) were multiplied by the forecast number of meters to be replaced
within each meter type (row 14 – 17). Likewise under the AMI Deployment scenario, the cost
for meter replacements (row 28) was determined by multiplying the unit cost (rows 1 – 4) by the
forecast number of meters to be replaced within each meter type (rows 24 – 27). The net benefit
to customers (row 30) was determined by subtracting the AMI Deployment scenario cost
(row 28) from the Status Quo scenario cost (row 18).
86.
The AMI meters will include a remote connect/disconnect switch, thus eliminating the
need for the majority of the site visits performed by meter installers to energize and de-energize
sites. The annual operating costs for these activities are shown on row 33. EDTI is estimating a
February 28, 2014
Appendix A-19
30
95% reduction in the costs associated with these activities and the estimated cost saving is shown
on row 35. EDTI has assumed that the cost savings will be achieved gradually over the three
year implementation (row 36). The total annual cost saving related to energize and de-energize
costs is shown on row 37.
87.
Interval meter troubleshooting costs (based upon 2013 labor and vehicle actual costs and
escalated at a rate of 2.9% per year) are provided in row 40. As discussed above EDTI intends to
replace approximately 1,600 of its 1,873 interval meters with AMI meters. Individual data lines
are prone to many issues that require troubleshooting and maintenance by senior meter installers.
EDTI has factored in a reduction (row 43) in this activity consistent with the reduction of interval
meters to be replaced by AMI meters.
Distribution Operations
88.
Cost savings identified in this area relate to reductions in voltage investigations and time
spent performing manual data extraction processes and estimations based on historical data for
system planning purposes. AMI will provide access to hourly data from all endpoints increasing
the value of the information while eliminating the manual data gathering tasks.
89.
Table 4.3.1.4-3 below provides a more detailed description and calculation of the
distribution operations reductions shown on row 17 of Table 4.3.1-1.
February 28, 2014
Appendix A-19
31
Table 4.3.1.3-4
Distribution Operations Benefits
2014-2017
($ millions)
Description
Escalation
Access to Profile Data for Planning
1
Rate per Hour - D&T Engineer ($/Hr)
2
Hours per Day
3
Work Days per Year
4
Escalated Value of Planning Data Access
5
Realization Factor (%)
6
Planning Data Access Benefit
SCADA Support
7
Rate per Hour - SCADA Technician ($/Hr)
8
Hours per Month
9
Months per Year
10 Escalated Value of SCADA Support Savings
11 Realization Factor (%)
12 SCADA Support Benefit
Voltage & Power Quality Investigations
13 Trouble Truck FTE loaded cost ($/Yr)
14 FTEs required for Voltage Monitoring
15 Salary Reduction
16 Vehicle Cost
17 Voltage & PQ Annual Benefits due to AMI
18 Realization Factor (%)
19 Total Voltage & Power Quality Benefit
Total Distribution Operations Savings
20 Total Distribution Operations Savings
Note: A complete analysis can be found in the “EDTI
Attachment 3.
A
Calculation
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
F
2018
2.9%
2013 F: $68.90
2
250
r1 x r2 x r3
67.28
69.23
71.23
73.30
75.42
0.03
0
0.03
0
0.04
0
0.04
50
0.02
0.04
100
0.04
73.91
76.05
78.25
80.52
82.86
0.005
0
0.005
0
0.006
0
0.006
50
0.003
0.006
100
0.006
0.12
0.13
0.13
0.13
0.14
0.06
0.05
0.11
0
0.06
0.05
0.11
0
0.07
0.05
0.12
30
0.03
0.07
0.05
0.12
80
0.10
0.07
0.05
0.12
100
0.12
r4 x r5
2013 F: $63.70
6
12
r7 x r8 x r9
r10 x r11
2013 F: $0.12
0.5
r13 x r14
2012 = $0.05
r15 + r16
r17 x r18
r6 + r12 + r19
0.03
0.12
0.17
Operating” tab within the workbook provided in Appendix A-19
90.
EDTI will realize reductions in time spent by System Planning staff in data gathering
tasks, and SCADA staff providing support to System Planning staff. These savings will be
realized through the availability of regular reading data from AMI that no longer needs to be
compiled from various sources of data including SCADA, billing reads, and settlement allocated
energy. Data gathering savings were determined based upon estimates from System Planning
staff with respect to how much time is consumed daily on data gathering tasks. This effort was
estimated at 0.5 hour per day for each of four System Planning resources and is shown on
row 13. The daily saving in staff time was multiplied by the hourly rate for an average system
planning position (row 2) and then multiplied again by 250 working days to determine the annual
saving shown on row 4. The portion of the benefit expected to be realized annually is shown in
row 5, and the annual realized operating benefit is shown on row 6; benefits are only expected to
accrue once AMI has been fully implemented and information is available for all meters.
91.
Estimated savings in SCADA costs to support System Planning were calculated based on
SCADA technician estimates of the monthly effort required to supply data to System Planning
(row 6). The estimated monthly effort was then multiplied by an average SCADA technician’s
February 28, 2014
Appendix A-19
32
hourly rate (row 7), and multiplied again by 12 months to determine the annual saving (row 10).
The portion of the benefit expected to be realized annually is shown in row 11, and the annual
realized operating benefit is shown on row 12; benefits are only expected to accrue once AMI
has been fully implemented and information is available for all meters.
92.
As each AMI meter takes regular voltage readings and sends this information back to the
control computer, EDTI crews will no longer have to deploy and retrieve special voltage
monitors at customer premises. Estimated labor savings (row 15) have been calculated by
multiplying the FTE reduction (row 14) by the average salary for a trouble truck position (row
13). The estimated annual reduction in vehicle costs (row 16) is based on bucket truck hours
required to hang or remove voltage monitoring equipment. Annual benefits relating to voltage
and power quality investigations are shown on row 17. The portion of the benefit expected to be
realized annually is shown on row 18, and the annual realized operating benefit is shown on
row 19.
Other Non-Quantified Benefits
93.
EDTI’s cost-benefit analysis for this project is based solely on the quantifiable operating
cost savings associated with the implementation of AMI technology as described above.
However, AMI will be a catalyst for other longer term benefits that are not easily or accurately
quantifiable at this stage, but are nevertheless significant in their own right. EDTI also notes that
in order to realize these longer term benefits, investment in additional infrastructure would be
required (e.g., to implement voltage optimization), and implementation of any demand response
initiatives would require direction from Government. The longer term “benefits” are described
further below.
(a)
Voltage Optimization
94.
Voltage optimization by an electric distribution system operator is the process of
controlling voltage on the grid to improve the use of electricity. Specific benefits can include
reduced energy use, improved equipment operation and prolonged equipment lifespan.
95.
As a matter of principle, equipment generally works best and lasts longest when it is
operated at rated voltage, or in some cases at reduced voltage. However, voltage drops along a
distribution circuit, so that customers far from a substation receive lower voltage than customers
close to the substation on the same circuit. To ensure the voltage level is sufficient for far-away
customers, the voltage at the substation is intentionally set higher. Utilities manage this situation
February 28, 2014
Appendix A-19
33
to the extent they can by attempting to avoid very long distribution circuits, especially in urban
settings such as EDTI's; in this way, the utility keeps the voltage difference small between closein customers (for whom the voltage is higher) and far-away customers (for whom the voltage is
lower).
96.
Short distribution circuits, however, are not sufficient to eliminate voltage problems.
Voltage also changes in response to the level of power on the circuit: when energy use is high,
voltage sags. (A similar effect is sometimes seen in households - for example, when a 1500 W
hair dryer is turned on, incandescent lights in the room dim for a second due to reduced voltage.)
And when energy use is reduced, voltage rises. Distribution systems typically have voltagesensing equipment that partially offsets these changes in voltage, but without AMI, the system
does not know whether the voltages at close-in or far-away customers are too high, too low or
still within spec.
97.
The 3-phase nature of AC distribution networks leads to another problem: voltage
imbalance between the 3 phases. This does not cause a problem for single-phase customers
(such as residences), but 3-phase loads (such as motors) will have 1 phase doing more work than
the other phases. This may place stress on the equipment's internal wiring (i.e. premature
equipment aging), and may produce increased heat (which lowers efficiency, and may lead to
increased friction, further adding stress and decreasing efficiency).
98.
Poorly-regulated voltage has a number of undesirable effects.
regulation can correct these problems:
Improved voltage

Energy use: For many devices, energy consumption increases as voltage
increases. For example, with resistive loads such as incandescent lights, if the
voltage is 10% higher, energy consumption may rise 20%.

Equipment operation and equipment lifespan: Maintaining balanced distribution
voltages near to rated values minimizes internal stresses within equipment and
helps ensure that wire insulation, for example, does not degrade prematurely and
fail.
With AMI, EDTI’s engineers will have actual dynamic voltage data to aid in system
99.
design and with choosing appropriate settings for equipment. Additional hardware and software
would result in additional benefits, but at added cost. For instance, EDTI could:
February 28, 2014
Appendix A-19
34

install more distribution voltage regulators on its longer lines, using end-customer
voltage information to modify the regulator settings

implement feedback control mechanisms to better regulate existing voltage
regulators and transformer tap changers
install capacitor banks on distribution circuits with poor power factors, and could
use information from AMI to control the staging of the capacitor banks to reduce
the amount of MVA as much as possible.

100. To maximize benefits from voltage optimization with AMI, some additional investment
would be required. In addition, estimating savings related to voltage optimization would be
difficult without detailed data. EDTI is of the view, however, that benefits could be realized, and
that AMI will provide the data necessary to quantify potential benefits and evaluate potential
additional investment in this regard through a business case analysis in the future.
(b)
Demand Response
101. AMI technology provides opportunity for benefits in the area of “demand response”.
EDTI notes that there are different methods and goals of “demand response”:

Load control by which the utility enters an agreement to control certain high use
customer sources of energy consumption such as air conditioners, pool pumps,
etc. in efforts to curb usage during peak periods or critical peak periods,

Time of Use (TOU) or other rate structures designed to incent customers to shift
load from peak load periods to non-peak load periods, and

Reduced energy consumption through customer awareness, provided by real time
monitoring devices integrated with the AMI meter or other sources.
102. As pointed out the in the Smart Grid report, Alberta customers enjoy a high load factor
and the residential sector only accounts for about 30% of the load in the province.
Implementation of any TOU or other rate programs requiring frequent (hourly or sub-hourly)
meter readings or usage intervals would require policy direction from the Government and AUC
led rule changes to implement changes to existing data exchange processes including the Tariff
Bill Code and Settlement System Code. Should these programs be determined to be necessary
by the Government, EDTI’s proposed AMI system would be well equipped to provide the
necessary data.
February 28, 2014
Appendix A-19
35
103. As Albertans, including EDTI’s customer base, enjoy a high load factor, EDTI does not
foresee a need for any form of utility load control as load from air conditioning, electric water
heating, and pool pumps is minimal within Edmonton.
104. The industry standard meters included with EDTI’s proposed AMI system will be
equipped with a HAN interface enabling customers to obtain real time energy information from
their own meter through a secure portal. There are many different products available for
customers to purchase and those who do invest in technology to support their awareness of their
personal electricity usage. A recent report entitled “Real Time Electricity Consumption
Monitoring Study” was published by Alberta Innovates – Technology Futures. A copy of the
report is provided in Appendix A-19 Attachment 5. The pilot study undertaken here in Alberta
demonstrated a correlation between the availability of real time electricity consumption
information and reduced energy consumption. EDTI notes that while AMI meters are not an
exclusive source for electricity monitoring devices, they will be available for authorized
customer use. As noted in the Smart Grid Inquiry Report, many customers have Home Area
Networks today and it was suggested that customers could benefit from having consumption
information available for monitoring.
Impact on Revenue Requirement
105. Table 4.3.1.3-5 below summarizes the annual incremental impact of Alternative 3 on
EDTI’s revenue requirement. EDTI notes that unlike the cash flow analysis shown in Table
4.3.1-1, positive numbers within this table represent an increase in EDTI’s revenue requirement
while negative numbers represent a reduction in the revenue requirement.
February 28, 2014
Appendix A-19
36
Table 4.3.1.3-5
Incremental Revenue Requirement Impact
2014-2034
($ millions)
Description
A
Calculation
B
2014
C
2015
D
2016
E
2017
F
2018
G
2019
H
2024
Meters
Return
0.06
1.42
3.29
3.73
3.49
2.22
Depreciation (6.7%)
0.06
1.41
3.35
4.02
4.05
4.22
Total Capital Revenue Requirement
r1 + r2
0.12
2.83
6.64
7.75
7.53
6.44
Fixed Network
4
Return
0.05
0.11
0.10
0.09
0.09
0.06
5
Depreciation (6.7%)
0.05
0.11
0.11
0.11
0.11
0.13
6
Total Capital Revenue Requirement
r4 + r5
0.11
0.21
0.21
0.21
0.20
0.19
NCC System (Software)
7
Return
0.02
0.03
0.03
0.02
0.02
0.00
8
Depreciation (10.0%)
0.02
0.05
0.05
0.05
0.05
0.05
9
Total Capital Revenue Requirement
r7 + r8
0.04
0.08
0.07
0.07
0.07
0.05
NCC System (Hardware)
10
Return
0.05
0.09
0.06
0.03
0.01
11
Depreciation (25.0%)
0.22
0.43
0.43
0.43
0.22
12
Total Capital Revenue Requirement
r10 + r11
0.27
0.52
0.49
0.46
0.22
Project Integration (EDTI Costs)
13
Return
0.11
0.23
0.26
0.25
0.22
0.05
14
Depreciation (10.0%)
0.16
0.37
0.45
0.48
0.48
0.48
15
Total Capital Revenue Requirement
r13 + r14
0.26
0.60
0.71
0.73
0.70
0.53
Project Integration (Vendor Costs)
16
Return
0.05
0.14
0.19
0.21
0.19
0.11
17
Depreciation (6.7%)
0.05
0.14
0.20
0.23
0.23
0.23
18
Total Capital Revenue Requirement
r16 + r17
0.11
0.28
0.39
0.44
0.43
0.35
Project Integration (Customer Awareness Program)
19
Return
0.01
0.02
0.04
0.04
0.04
0.02
20
Depreciation (6.7%)
0.01
0.02
0.04
0.05
0.05
0.05
21
Total Capital Revenue Requirement
r19 + r20
0.02
0.05
0.08
0.09
0.09
0.07
Capital Benefits
22
Return
(0.08) (0.23) (0.37) (0.50) (0.59) (0.89)
23
Depreciation (6.7%)
(0.08) (0.23) (0.38) (0.54) (0.67) (1.28)
24
Total Capital Revenue Requirement
r22 + r23
(0.15) (0.46) (0.75) (1.03) (1.27) (2.16)
Incremental Operating Cost / Benefit
25
EDTI Operating Costs
(0.33) (0.94) (1.33) (1.08) (1.11) (1.23)
26
EDTI Operating Benefits
1.67
4.11
7.57
9.61
8.96
9.67
27
Total: Incremental Cost / Benefit
r25 + r26
1.34
3.17
6.24
8.53
7.86
8.45
AMI - Incremental Revenue Requirement (RR) Impact
r3 + r6 + r9 + r12 +
28
Net Impact on RR
r15 + r18 + r21 +
(0.57)
0.94
1.61
0.20
0.12
(2.98)
r24 - r27
29
Discount Rate
2014 F WACC
6.99%
Net Present Value of Revenue
30
(33.67)
Requirement Reduction
Note: Some totals appear incorrect due to rounding.
Note: A complete analysis can be found in the “Revenue Requirement” tab within the workbook provided in Appendix A-19 Appendix 3.
1
2
3
I
2029
J
2034
0.91
4.41
5.32
0.31
0.57
0.88
0.03
0.15
0.18
0.03
0.06
0.09
0.03
0.23
0.26
0.01
0.05
0.05
(0.90)
(1.80)
(2.70)
(0.93)
(1.77)
(2.70)
(1.36)
12.37
11.01
(1.52)
12.47
10.95
(7.89)
(12.67)
106. Annual return and depreciation amounts have been summarized for each capital asset
class depending on the depreciation term (rows 1 – 21). For example the forecast annual impact
to the revenue requirement for meters (row 3) is calculated by adding the annual return (row 1)
and the total annual depreciation amount (row 2). The total revenue requirement impact for each
type of capital addition (sum of rows 3, 6, 9, 12, 15, 18, 21, and 24) is subtracted from the annual
benefit amount that is incremental to the status quo (row 27) and the result is a substantial
reduction in EDTI’s revenue requirement on an NPV basis (row 28). EDTI notes that the
maximum annual increase to its revenue requirement will occur in 2017, where an increase of
February 28, 2014
Appendix A-19
37
$1.61 million is forecast. Evenly distributed over the 388,751 customers forecast at mid-year in
2017 (Table 4.3-5, column E, row 6), this increase would constitute about a $4.13 increase for
each customer in 2017, or about an average of $0.34 per monthly bill.
107. Table 4.3.1.3-6 below provides a graphical view of the annual incremental impact to
EDTI’s revenue requirement over the life of the project.
Table 4.3.1.3-6
Incremental Revenue Requirement Impact
2015-2034
($ millions)
108. As illustrated, the project will result in small annual increases to EDTI’s revenue
requirement in 2016–2019 after which customers will enjoy substantial and growing reductions
in the revenue requirement each year thereafter.
4.4
Alternative 4: Implement an AMR Solution using a Fixed Network
109. Under Alternative 4, EDTI would undertake a multi-year project to select a vendor and
implement an AMR network system in 2015 through 2017. The project would replace the
majority of its current meter population.
110.
The main work activities required with this alternative are:

Develop and issue a Request for Proposal (“RFP”) for the selection of a vendor
that could provide a lower cost meter on a fixed network,

Deployment of a network communications infrastructure to collect meter data,

Deployment of the head end control system, and associated computer hardware,
February 28, 2014
Appendix A-19
38


111.
112.
Implementing all required interfaces to existing EDTI systems including its
Settlement and Tariff system (“STARS”), and Mobile Workforce Management
System (“MWFMS”).
Training of key EDTI personnel as necessary to operate and maintain the AMR
system.

Installation of AMR meters across EDTI’s service area, and

Transition and change management costs for employees and customers alike.
The main benefits of this alternative are:

Customers would benefit from the elimination of meter reading costs,

Installation of new meters would avoid a significant amount of meter compliance
sampling, testing, and replacement costs required during the majority of the 20
year analysis period,

Customers would benefit from lower costs as the AMI system will support the
communication needs for the majority of interval meters thus eliminating the need
for the individual data lines currently required today to back haul interval meter
data,

Safety concerns for EDTI meter readers and meter installers required to enter
customer premises will be mitigated much sooner as opposed to the gradual AMR
meter deployment in Alternative 1.
The major drawbacks of this alternative are:

As the AMR meters only support basic energy measurement, this platform cannot
enable benefits from other Smart Grid initiatives such as Outage Management,
asset management, integration to home area network, and theft management,

Customers would not benefit from cost reductions that automated meter energize
and de-energize processes as AMR meters do not have remote connect/disconnect
functionality,

Vendor options for AMR network meters are limited as most vendors now focus
solely on the more standard functionally rich AMI meters, and

Increasing safety concerns for EDTI meter installers required to disconnect
customers’ electrical services for non-payment would continue.
February 28, 2014
Appendix A-19
39
4.4.1 Cost/Benefit Analysis
113. Table 4.4.1-1 provides a summary year by year breakdown of the capital expenditures,
operating costs, operating savings and net cash flow for Alternative 4.
Table 4.4.1-1
Net Annual Cash Flow - Alternative 4
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Description
AMI - Capital
Capital Costs
Initial Project - System Costs
Initial Project - Meter Costs
Initial Project - Other Costs
Ongoing Costs
Capital Overhead
Capital Costs
Capital Benefits
Capital Benefits
Capital Overhead
Capital Benefits
NET AMI CAPITAL COSTS
AMI - Operating
EDTI Operating Costs
Load Center/MDM Operations
Annual Software Licence Fees
WAN Fees
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
EDTI Operating Benefits
NET AMI OPERATING
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
A
Calculation
B
2014
C
2015
D
2016
E
2017
F
2018
G
2019
H
2024
I
2029
J
2034
(0.04)
(0.76)
(3.58)
(1.25)
(4.02)
0.12
(0.52)
(9.25)
(30.14)
(2.08)
0.21
(1.92)
(33.93)
(15.07)
(1.71)
0.21
(0.99)
(17.57)
0.21
0.01
0.23
0.22
0.01
0.23
0.23
0.01
0.25
0.25
0.02
0.27
0.27
0.02
0.28
(0.76)
2.18
0.13
2.31
(6.94)
2.15
0.13
2.28
(31.66)
2.21
0.13
2.35
(15.22)
2.10
0.13
2.22
2.45
1.73
0.10
1.83
2.06
1.21
0.07
1.28
1.53
1.78
0.11
1.89
2.15
0.30
0.02
0.32
0.60
r11 + r12 + r13
(0.15)
(0.16)
(0.02)
(0.33)
(0.57)
(0.34)
(0.04)
(0.95)
(0.97)
(0.35)
(0.04)
(1.35)
(0.72)
(0.36)
(0.04)
(1.11)
(0.74)
(0.37)
(0.04)
(1.14)
(0.85)
(0.42)
(0.05)
(1.32)
(0.98)
(0.49)
(0.05)
(1.52)
(1.13)
(0.56)
(0.06)
(1.76)
r15 + r16
r14 + r17
0.13
1.54
1.67
1.34
1.52
2.08
3.60
2.66
4.07
2.09
6.16
4.81
5.32
2.47
7.79
6.67
5.49
1.59
7.08
5.94
6.44
1.06
7.50
6.18
7.56
2.31
9.87
8.34
8.90
0.69
9.59
7.83
(5.60)
(29.00)
(10.41)
9.12
8.00
7.71
10.50
8.43
(0.72)
(r1 - r4) x 6.0%
Sum (r1 - r5)
r7 x 6.0%
r7 + r8
r6 + r9
r10 + r18
2014 F WACC
(0.76)
6.99%
32.50
Note: A complete analysis can be found in the “Cash Flow” tab within the workbook provided in Appendix A-19 Attachment 4.
5.0
RECOMMENDATION
114. EDTI has examined each of the alternatives related to meter reading automation and has
concluded that the implementation of AMI (Alternative 3) is clearly the superior option that
provides the greatest financial benefit to customers and the best technology platform choice for
the years ahead.
5.1
Financial Comparison
115.
A financial summary of the alternatives is shown in Table 5.1-1 below.
February 28, 2014
Appendix A-19
40
Table 5.1-1
Financial Summary of Alternatives
($ millions)
1
2
3
4
Alternative
Alternative 1 - Status Quo
Alternative 2 - AMR Drive-by
Alternative 3 - AMI
Alternative 4 - AMR Network
A
Net Cash Flow
(NPV)
(26.36)
30.01
36.11
32.50
B
Revenue Requirement
Reduction (NPV)
(21.85)
26.88
33.67
28.50
116. As shown in Table 5.1-1 above, the implementation of AMI (Alternative 3) provides the
highest financial benefits and reduction of revenue requirement for customers. Alternative 1
reflects the capital and operating cost increases that customers will incur should EDTI continue
with its current practice of installing AMR meters to support growth and replacement needs.
5.2
Technology Options
117. In addition to clearly providing the greatest financial benefits to customers, the
implementation of AMI is also clearly the best technology option for several reasons.
118. AMI technology provides a full function meter that in addition to providing increased
operational benefits as identified in this business case provides a platform that enables future
benefits in areas such as:

outage management,

energy theft detection and management,

conservation voltage reduction,

asset management, and

support for future retailer data needs, customer awareness, or government policy
changes.
119. The basic functionality of AMR technology using drive-by technology (Alternative 2) or
a fixed network solution (Alternative 4) limits benefits to reductions in ongoing costs related to
meter reading and meter compliance sampling and replacement.
120. Finally, AMR technology has been supplanted by AMI technology as a standard metering
option for electric meters; this is evidenced by the limited number of vendors offering basic
AMR type meters as opposed to the extensive number of vendors offering full function AMI
February 28, 2014
Appendix A-19
41
meters. In Canada, EDTI is aware of only two vendors that continue to offer AMR RF electric
meter technology compared to more than eight vendors offering one or more standard full
function AMI meters.
5.3
Customer Choice
121. Recent AMI deployments in other regions across North America, including larger
Canadian utilities such as BC Hydro and Hydro Quebec, have included “opt out” programs for
customers not wanting an AMI meter installed at their location. EDTI understands the programs
approved in these regions are generally designed to permit customers to “opt out” from the
installation of an AMI meter provided the customer pays the incremental costs associated with a
non-standard meter in the form of a one-time charge and an ongoing monthly charge to cover the
cost of reading the meter manually. As demonstrated in this business case and engineering
study, the benefits to having AMI meters installed across EDTI’s entire system are substantial,
and EDTI does not see any justification for employing a similar “opt out” program in its service
area. However, should the Commission disagree and determine that customers in EDTI’s service
area be afforded the opportunity to “opt out”, EDTI would be prepared to file additional
information or, if necessary, a separate application, outlining these additional costs and a
proposal for their recovery from customers.
6.0
FORECAST AND
PROJECTS
HISTORICAL CAPITAL ADDITIONS ON SIMILAR
122. Table 6.0-1 summarizes EDTI’s 2008-2015 Forecast and previous years’ capital
additions to rate base associated projects similar to the ones included in this Capital Tracker.
Table 6.0-1
Meter Reading Automation 2008–2015
($ millions)
1
2
Capital
Additions
Variance
A
B
C
D
E
F
G
H
I
J
K
L
M
2008 D 2008 A 2009 D 2009 A 2010 D 2010 A 2011 D 2011 A 2012 D 2012 A 2013 D 2013 PA 2014 F
-
-
-
-
-
-
-
-
-
-
-
N/A
-
-
N
2015 F
10.39
-
123. The Forecast capital additions for this project reflect the scope of work described earlier
in this business case and engineering study.
February 28, 2014
Appendix A-19
42
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 1 (Status Quo)
Worksheet: Cash Flow
● Positive Value = Benefit
● Negative Value = Cost
DCF NPV Summary
DCF Net Present Value ($)
Discount Rate (WACC) (%)
-26,360,164
6.99%
Revenue Requirement NPV Summary
RR Net Present Value ($)
21,851,921
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
-313,559
-1,438,866
-1,694,515
-1,727,242
-1,620,508
-1,417,726
-1,592,663
-1,629,983
-1,241,024
-1,171,302
428,167
-302,267
-1,045,670
-864,765
100%
-313,559
-1,438,866
-1,694,515
-1,727,242
-1,620,508
-1,417,726
-1,592,663
-1,629,983
-1,241,024
-1,171,302
428,167
-302,267
-1,045,670
6.00%
-18,814
-86,332
-101,671
-103,635
-97,231
-85,064
-95,560
-97,799
-74,461
-70,278
25,690
-18,136
Capital Costs with Capital Overhead
-332,373
-1,525,197
-1,796,186
-1,830,877
-1,717,739
-1,502,790
-1,688,223
-1,727,782
-1,315,486
-1,241,580
453,857
NET AMI CAPITAL COSTS
-332,373
-1,525,197
-1,796,186
-1,830,877
-1,717,739
-1,502,790
-1,688,223
-1,727,782
-1,315,486
-1,241,580
30,333
-317,737
-287,404
-431,808
-456,666
-888,474
-505,977
-626,097
-1,132,074
-374,517
-693,337
-1,067,854
-581,844
-549,046
-1,130,890
-550,009
-354,919
-904,928
-594,863
-318,361
-913,224
-602,231
-289,103
-891,334
-620,053
25,510
-594,543
NET AMI OPERATING
-287,404
-888,474
-1,132,074
-1,067,854
-1,130,890
-904,928
-913,224
-891,334
NET ANNUAL CASH FLOW
-619,777
-2,413,672
-2,928,260
-2,898,731
-2,848,629
-2,407,718
-2,601,447
-2,619,117
2028
2029
2030
2031
2032
2033
2034
-768,481
-1,269,024
-1,640,017
-1,662,967
-1,310,507
-2,522,437
-1,531,651
-864,765
-768,481
-1,269,024
-1,640,017
-1,662,967
-1,310,507
-2,522,437
-1,531,651
-62,740
-51,886
-46,109
-76,141
-98,401
-99,778
-78,630
-151,346
-91,899
-320,403
-1,108,410
-916,651
-814,590
-1,345,166
-1,738,418
-1,762,745
-1,389,138
-2,673,784
-1,623,550
453,857
-320,403
-1,108,410
-916,651
-814,590
-1,345,166
-1,738,418
-1,762,745
-1,389,138
-2,673,784
-1,623,550
-612,417
-86,259
-698,676
32,331
597,914
630,245
-252,299
99,334
-152,965
-561,992
-617,371
-1,179,363
-599,522
-1,275,661
-1,875,183
-299,706
-1,465,353
-1,765,060
-802,576
-421,295
-1,223,870
-849,298
130,713
-718,584
-825,080
-676,872
-1,501,952
-808,194
817,826
9,631
-1,126,661
-927,922
-2,054,584
-750,925
-168,415
-919,340
-594,543
-698,676
630,245
-152,965
-1,179,363
-1,875,183
-1,765,060
-1,223,870
-718,584
-1,501,952
9,631
-2,054,584
-919,340
-1,910,029
-1,940,256
1,084,102
-473,368
-2,287,773
-2,791,834
-2,579,649
-2,569,036
-2,457,003
-3,264,697
-1,379,507
-4,728,367
-2,542,890
Capital Costs
Capital Meter Replacements
Capital Costs Before Capital Overhead
Capital Overhead
AMI OPERATING
EDTI Operating Costs
GOV Meter Replacement
Compliance Sampling
EDTI Operating Costs
100%
NPV
February 28, 2014
-26,360,164
Appendix A-19 Attachment 1.xls
Cash Flow
Page 1 of 6
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 1 (Status Quo)
Worksheet: Revenue Requirement
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
0
332,373
0
332,373
166,186
332,373
1,525,197
0
1,857,570
1,094,972
1,857,570
1,796,186
0
3,653,756
2,755,663
3,653,756
1,830,877
0
5,484,633
4,569,195
5,484,633
1,717,739
0
7,202,372
6,343,502
7,202,372
1,502,790
0
8,705,162
7,953,767
8,705,162
1,688,223
0
10,393,385
9,549,273
10,393,385
1,727,782
0
12,121,167
11,257,276
12,121,167
1,315,486
0
13,436,653
12,778,910
13,436,653
1,241,580
0
14,678,233
14,057,443
14,678,233
-453,857
0
14,224,376
14,451,305
14,224,376
320,403
0
14,544,779
14,384,578
14,544,779
1,108,410
0
15,653,189
15,098,984
15,653,189
916,651
0
16,569,840
16,111,515
16,569,840
814,590
0
17,384,430
16,977,135
17,384,430
1,345,166
-332,373
18,397,223
17,890,826
18,397,223
1,738,418
-1,525,197
18,610,444
18,503,833
18,610,444
1,762,745
-1,796,186
18,577,002
18,593,723
18,577,002
1,389,138
-1,830,877
18,135,264
18,356,133
18,135,264
2,673,784
-1,717,739
19,091,308
18,613,286
19,091,308
1,623,550
-1,502,790
19,212,068
19,151,688
0
-11,079
0
-11,079
-5,540
-11,079
-72,998
0
-84,077
-47,578
-84,077
-183,711
0
-267,788
-175,933
-267,788
-304,613
0
-572,401
-420,095
-572,401
-422,900
0
-995,301
-783,851
-995,301
-530,251
0
-1,525,552
-1,260,427
-1,525,552
-636,618
0
-2,162,171
-1,843,861
-2,162,171
-750,485
0
-2,912,656
-2,537,413
-2,912,656
-851,927
0
-3,764,583
-3,338,619
-3,764,583
-937,163
0
-4,701,746
-4,233,164
-4,701,746
-963,420
0
-5,665,166
-5,183,456
-5,665,166
-958,972
0
-6,624,138
-6,144,652
-6,624,138
-1,006,599
0
-7,630,737
-7,127,438
-7,630,737
-1,074,101
0
-8,704,838
-8,167,787
-8,704,838
-1,131,809
0
-9,836,647
-9,270,742
-9,836,647
-1,192,722
-332,373
-11,361,742
-10,599,194
-11,361,742
-1,233,589
-1,525,197
-14,120,528
-12,741,135
-14,120,528
-1,239,582
-1,796,186
-17,156,295
-15,638,412
-17,156,295
-1,223,742
-1,830,877
-20,210,914
-18,683,605
-20,210,914
-1,240,886
-1,717,739
-23,169,539
-21,690,227
-23,169,539
-1,276,779
-1,502,790
-25,949,108
-24,559,324
0
321,294
160,647
321,294
1,773,493
1,047,394
1,773,493
3,385,968
2,579,731
3,385,968
4,912,232
4,149,100
4,912,232
6,207,071
5,559,651
6,207,071
7,179,610
6,693,340
7,179,610
8,231,214
7,705,412
8,231,214
9,208,512
8,719,863
9,208,512
9,672,070
9,440,291
9,672,070
9,976,487
9,824,279
9,976,487
8,559,210
9,267,849
8,559,210
7,920,641
8,239,925
7,920,641
8,022,452
7,971,547
8,022,452
7,865,002
7,943,727
7,865,002
7,547,783
7,706,393
7,547,783
7,035,481
7,291,632
7,035,481
4,489,915
5,762,698
4,489,915
1,420,707
2,955,311
1,420,707
-2,075,651
-327,472
-2,075,651
-4,078,231
-3,076,941
-4,078,231
-6,737,040
-5,407,635
6.99%
11,229
11,079
22,308
73,213
72,998
146,211
180,323
183,711
364,034
290,022
304,613
594,635
388,620
422,900
811,520
467,864
530,251
998,116
538,608
636,618
1,175,227
609,518
750,485
1,360,004
659,876
851,927
1,511,804
686,717
937,163
1,623,880
647,823
963,420
1,611,243
575,971
958,972
1,534,943
557,211
1,006,599
1,563,810
555,267
1,074,101
1,629,368
538,677
1,131,809
1,670,486
509,685
1,192,722
1,702,407
402,813
1,233,589
1,636,401
206,576
1,239,582
1,446,158
-22,890
1,223,742
1,200,852
-215,078
1,240,886
1,025,808
-377,994
1,276,779
898,786
100%
-287,404
-287,404
-888,474
-888,474
-1,132,074
-1,132,074
-1,067,854
-1,067,854
-1,130,890
-1,130,890
-904,928
-904,928
-913,224
-913,224
-891,334
-891,334
-594,543
-594,543
-698,676
-698,676
630,245
630,245
-152,965
-152,965
-1,179,363
-1,179,363
-1,875,183
-1,875,183
-1,765,060
-1,765,060
-1,223,870
-1,223,870
-718,584
-718,584
-1,501,952
-1,501,952
9,631
9,631
-2,054,584
-2,054,584
-919,340
-919,340
11,229
11,079
-287,404
309,712
73,213
72,998
-888,474
1,034,685
180,323
183,711
-1,132,074
1,496,108
290,022
304,613
-1,067,854
1,662,489
388,620
422,900
-1,130,890
1,942,410
467,864
530,251
-904,928
1,903,043
538,608
636,618
-913,224
2,088,451
609,518
750,485
-891,334
2,251,338
659,876
851,927
-594,543
2,106,347
686,717
937,163
-698,676
2,322,556
647,823
963,420
630,245
980,998
575,971
958,972
-152,965
1,687,908
557,211
1,006,599
-1,179,363
2,743,173
555,267
1,074,101
-1,875,183
3,504,551
538,677
1,131,809
-1,765,060
3,435,545
509,685
1,192,722
-1,223,870
2,926,277
402,813
1,233,589
-718,584
2,354,986
206,576
1,239,582
-1,501,952
2,948,110
-22,890
1,223,742
9,631
1,191,221
-215,078
1,240,886
-2,054,584
3,080,391
-377,994
1,276,779
-919,340
1,818,125
-1,525,197
-1,525,197
0
-1,796,186
-1,796,186
0
-1,830,877
-1,830,877
0
-1,717,739
-1,717,739
0
-1,502,790
-1,502,790
0
-1,688,223
-1,688,223
0
-1,727,782
-1,727,782
0
-1,315,486
-1,315,486
0
-1,241,580
-1,241,580
0
453,857
453,857
0
-320,403
-320,403
0
-1,108,410
-1,108,410
0
-916,651
-916,651
0
-814,590
-814,590
0
-1,345,166
-1,345,166
0
-1,738,418
-1,738,418
0
-1,762,745
-1,762,745
0
-1,389,138
-1,389,138
0
-2,673,784
-2,673,784
0
-1,623,550
-1,623,550
0
Note: Retirement Logic not automatic - if depreciation rate changes, manually adjust retirements
1
s
Initial Project AMI Meters + AMI Meters Installation
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Capital Meter Replacements)
Retirements (Capital Meter Replacements)
Closing Balance
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
2
6.67%
Capital Revenue Requirement
2,000,000
1,500,000
1,000,000
500,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
AMI EDTI Operating Cost / Benefits
EDTI Operating Costs
Total AMI EDTI Operating Cost / Benefits
3
15
Incremental Revenue Requirement - AMI
Return
Depreciation
AMI Incremental Operating Cost / Benefits
Net Impact on Revenue Requirement
NPV
Check capital
CF capital
Difference
21,851,921
-332,373
-332,373
0
Cap. Cost Sensitivity % Ref.
February 28, 2014
100%
Appendix A-19 Attachment 1.xls
Rev Req
Page 2 of 6
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 1 (Status Quo)
Worksheet: EDTI Capital
● 'DCF' dentoes the row is referenced in the Discounted Cash Flow Worksheet
Year
Capital Escalation Rate (%)
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
667
376
60
0
112,468
-12,302
-1,556
646
0
-980,453
-14,942
0
255
0
-1,077,748
-7,864
-3,866
-579
0
-1,224,036
-16,194
147
0
0
-1,214,944
-13,707
-1,624
-42
0
-1,258,973
-13,613
-2,767
-260
0
-1,447,693
-13,464
-2,288
-711
0
-1,482,686
-15,030
-264
-211
0
-1,228,119
-14,687
0
0
0
-1,118,709
-207
781
961
0
310,368
-5,753
-317
525
0
-353,895
-12,370
0
0
0
-942,223
-15,262
3,503
316
0
-645,564
-5,339
-1,776
576
0
-494,424
-15,305
-287
431
-191
-1,222,999
-11,924
-2,559
-195
-618
-1,675,557
-11,870
-2,754
-390
-391
-1,595,982
-11,496
-1,518
-452
-473
-1,479,010
-10,371
-764
-1,269
-1,829
-2,365,253
-10,301
-3,529
-1,157
0
-1,504,000
4,130
60%
-188,749
1,770
50%
-111,696
880
60%
-125,030
400
70%
-180,396
-605,871
5,675
60%
-259,359
1,300
50%
-82,037
560
60%
-79,565
400
70%
-180,396
-601,356
4,510
60%
-206,116
765
50%
-48,275
720
60%
-102,298
1,120
70%
-505,108
-861,797
3,845
50%
-146,437
2,225
40%
-112,327
1,040
50%
-123,136
960
60%
-371,100
-752,999
3,745
45%
-128,365
1,120
35%
-49,474
800
45%
-85,248
1,360
55%
-481,914
-745,002
3,360
40%
-102,372
650
30%
-24,611
640
40%
-60,621
320
50%
-103,083
-290,687
2,765
35%
-73,714
1,085
25%
-34,234
320
35%
-26,522
400
45%
-115,969
-250,438
3,290
35%
-87,710
1,675
25%
-52,850
560
35%
-46,413
480
45%
-139,162
-326,135
1,640
30%
-37,476
240
20%
-6,058
320
30%
-22,733
160
40%
-41,233
-107,500
780
25%
-14,853
525
20%
-13,252
160
25%
-9,472
400
35%
-90,198
-127,775
1,865
20%
-28,411
605
20%
-15,271
240
25%
-14,208
320
35%
-72,158
-130,049
4,265
15%
-48,730
775
15%
-14,672
240
25%
-14,208
320
30%
-61,850
-139,460
3,470
15%
-39,646
1,370
15%
-25,936
800
25%
-47,360
1,200
30%
-231,937
-344,880
4,050
15%
-46,273
1,610
15%
-30,480
1,040
25%
-61,568
1,120
30%
-216,475
-354,796
2,715
15%
-31,020
1,200
15%
-22,718
880
25%
-52,096
1,440
30%
-278,325
-384,159
2,980
15%
-34,048
650
15%
-12,305
800
25%
-47,360
480
30%
-92,775
-186,488
1,560
15%
-17,824
1,005
15%
-19,026
240
25%
-14,208
640
30%
-123,700
-174,758
3,870
15%
-44,217
1,675
15%
-31,710
480
25%
-28,416
640
30%
-123,700
-228,043
5,210
15%
-59,527
695
15%
-13,157
160
25%
-9,472
320
30%
-61,850
-144,006
3,550
15%
-40,561
925
15%
-17,512
800
25%
-47,360
1,120
30%
-216,475
-321,907
2,265
15%
-25,879
1,325
15%
-25,084
880
25%
-52,096
80
30%
-15,462
-118,521
2,790
10%
21,251
1,205
20%
30,417
605
40%
57,306
275
40%
70,870
179,843
-313,559
2,840
10%
21,632
760
20%
19,184
330
40%
31,258
275
40%
70,870
142,944
-1,438,866
2,205
10%
16,795
355
20%
8,961
220
40%
20,838
770
40%
198,435
245,030
-1,694,515
1,745
10%
13,292
980
20%
24,737
440
40%
41,677
660
40%
170,087
249,793
-1,727,242
2,170
10%
16,529
770
20%
19,436
660
40%
62,515
935
40%
240,957
339,437
-1,620,508
1,095
10%
8,341
380
20%
9,592
605
40%
57,306
220
40%
56,696
131,934
-1,417,726
1,235
10%
9,407
575
20%
14,514
330
25%
19,536
275
35%
62,011
105,468
-1,592,663
1,605
10%
12,225
680
20%
17,165
220
25%
13,024
605
35%
136,424
178,838
-1,629,983
1,070
10%
8,150
710
20%
17,922
110
25%
6,512
275
35%
62,011
94,595
-1,241,024
1,770
10%
13,482
350
20%
8,835
55
25%
3,256
220
35%
49,609
75,182
-1,171,302
2,470
10%
18,814
905
20%
22,844
550
25%
32,560
770
35%
173,631
247,849
428,167
2,040
10%
15,539
740
20%
18,679
495
25%
29,304
660
30%
127,565
191,087
-302,267
2,125
10%
16,186
440
20%
11,106
385
25%
22,792
990
30%
191,348
241,433
-1,045,670
2,005
10%
15,272
950
20%
23,980
550
25%
32,560
330
30%
63,783
135,595
-864,765
2,095
10%
15,958
850
20%
21,456
330
25%
19,536
275
30%
53,152
110,102
-768,481
910
10%
6,931
760
20%
19,184
495
25%
29,304
440
30%
85,044
140,463
-1,269,024
965
10%
7,350
820
20%
20,698
385
25%
22,792
825
30%
159,457
210,298
-1,640,017
990
10%
7,541
220
20%
5,553
165
25%
9,768
715
30%
138,196
161,058
-1,662,967
2,925
10%
22,280
1,235
20%
31,174
605
25%
35,816
1,155
30%
223,240
312,509
-1,310,507
3,220
10%
24,527
895
20%
22,592
550
25%
32,560
440
30%
85,044
164,722
-2,522,437
2,450
10%
18,662
110
20%
2,777
275
25%
16,280
275
30%
53,152
90,871
-1,531,651
EDTI CAPITAL COSTS
Meter Capital Replacements
2014F
Gov Meter Replacements - Meter Quantity (S-S-06 - LMB-GE-04)
Single Phase Meters
$76.17
Network Meters
$126.21
Polyphase Meters
$236.80
Demand Meters
$644.27
Meter Replacements Cost
Compliance Sampling Meter Replacements (S-S-06)
Single Phase Meters
Replacement %
Replacement - Capital Cost
Network Meters
Replacement %
Replacement - Capital Cost
Polyphase Meters
Replacement %
Replacement - Capital Cost
Demand Meters
Replacement %
Replacement - Capital Cost
Compliance Sampling Meter Replacement Cost (S-S-06)
$76.17
$126.21
$236.80
$644.27
Compliance Sampling Meter Replacements (LMB-GE-04)
Single Phase Meters
Replacement %
Replacement - Capital Cost
$76.17
Network Meters
Replacement %
Replacement - Capital Cost
$126.21
Polyphase Meters
Replacement %
Replacement - Capital Cost
$236.80
Demand Meters
Replacement %
Replacement - Capital Cost
$644.27
Compliance Sampling Meter Replacement Cost (LMB-GE-04)
DCF Meter Capital Replacements
February 28, 2014
Appendix A-19 Attachment 1.xls
EDTI Capital
Page 3 of 6
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 1 (Status Quo)
Worksheet: EDTI Operating
● Positive Value = Benefit
● Negative Value = Cost
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Operating Escalation Rate (%)
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
752
0
0
0
13,194
1,982
1,368
0
16,912
0
0
0
9,432
4,265
861
0
17,261
290
0
0
15,801
1,624
114
0
13,613
2,767
260
0
13,464
2,288
711
0
15,030
264
211
0
14,687
0
0
0
14,188
0
0
0
13,327
996
0
0
15,886
0
0
0
15,732
0
0
0
12,145
1,899
0
0
15,305
1,420
538
191
11,924
2,878
195
618
11,870
2,754
390
391
12,915
2,571
452
473
11,263
1,579
1,269
1,829
12,271
3,529
1,157
0
1,419
376
60
0
892
426
2,014
0
1,970
0
255
0
1,568
399
282
0
1,067
437
0
0
2,094
0
72
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
13,981
781
961
0
7,574
679
525
0
3,516
0
0
0
470
3,503
316
0
6,806
123
576
0
0
1,133
969
0
0
319
0
0
0
0
0
0
1,419
1,053
0
0
892
815
0
0
1,970
0
0
0
667
376
60
0
-12,302
-1,556
646
0
-14,942
0
255
0
-7,864
-3,866
-579
0
-16,194
147
0
0
-13,707
-1,624
-42
0
-13,613
-2,767
-260
0
-13,464
-2,288
-711
0
-15,030
-264
-211
0
-14,687
0
0
0
-207
781
961
0
-5,753
-317
525
0
-12,370
0
0
0
-15,262
3,503
316
0
-5,339
-1,776
576
0
-15,305
-287
431
-191
-11,924
-2,559
-195
-618
-11,870
-2,754
-390
-391
-11,496
-1,518
-452
-473
-10,371
-764
-1,269
-1,829
-10,301
-3,529
-1,157
0
32.24
21.07
15.10
155.76
30,333
33.17
21.69
15.53
160.28
-431,808
34.14
22.31
15.98
164.92
-505,977
35.13
22.96
16.45
169.71
-374,517
36.14
23.63
16.92
174.63
-581,844
37.19
24.31
17.41
179.69
-550,009
38.27
25.02
17.92
184.90
-594,863
39.38
25.74
18.44
190.27
-602,231
40.52
26.49
18.97
195.78
-620,053
41.70
27.26
19.52
201.46
-612,417
42.91
28.05
20.09
207.30
32,331
44.15
28.86
20.67
213.32
-252,299
45.43
29.70
21.27
219.50
-561,992
46.75
30.56
21.89
225.87
-599,522
48.11
31.45
22.52
232.42
-299,706
49.50
32.36
23.18
239.16
-802,576
50.94
33.30
23.85
246.09
-849,298
52.41
34.26
24.54
253.23
-825,080
53.93
35.26
25.25
260.57
-808,194
55.50
36.28
25.99
268.13
-1,126,661
57.11
37.33
26.74
275.91
-750,925
4,130
1,770
880
400
5,675
1,300
560
400
4,510
765
720
1,120
3,845
2,225
1,040
960
3,745
1,120
800
1,360
3,360
650
640
320
2,765
1,085
320
400
3,290
1,675
560
480
1,640
240
320
160
780
525
160
400
1,865
605
240
320
4,265
775
240
320
3,470
1,370
800
1,200
4,050
1,610
1,040
1,120
2,715
1,200
880
1,440
2,980
650
800
480
1,560
1,005
240
640
3,870
1,675
480
640
5,210
695
160
320
3,550
925
800
1,120
2,265
1,325
880
80
2,790
1,205
605
275
2,840
760
330
275
2,205
355
220
770
1,745
980
440
660
2,170
770
660
935
1,095
380
605
220
1,235
575
330
275
1,605
680
220
605
1,070
710
110
275
1,770
350
55
220
2,470
905
550
770
2,040
740
495
660
2,125
440
385
990
2,005
950
550
330
2,095
850
330
275
910
760
495
440
965
820
385
825
990
220
165
715
2,925
1,235
605
1,155
3,220
895
550
440
2,450
110
275
275
-1,340
-565
-275
-125
-2,835
-540
-230
-125
-2,305
-410
-500
-350
-2,100
-1,245
-600
-300
-1,575
-350
-140
-425
-2,265
-270
-35
-100
-1,530
-510
10
-125
-1,685
-995
-340
125
-570
470
-210
115
990
-175
-105
-180
605
300
310
450
-2,225
-35
255
340
-1,345
-930
-415
-210
-2,045
-660
-490
-790
-620
-350
-550
-1,165
-2,070
110
-305
-40
-595
-185
145
185
-2,880
-1,455
-315
75
-2,285
540
445
835
-330
-30
-250
-680
185
-1,215
-605
195
92.39
90.26
218.06
663.72
-317,737
95.07
92.88
224.38
682.96
-456,666
97.83
95.58
230.89
702.77
-626,097
100.67
98.35
237.58
723.15
-693,337
103.59
101.20
244.47
744.12
-549,046
106.59
104.13
251.56
765.70
-354,919
109.68
107.15
258.86
787.91
-318,361
112.86
110.26
266.36
810.75
-289,103
116.14
113.46
274.09
834.27
25,510
119.50
116.75
282.04
858.46
-86,259
122.97
120.13
290.22
883.36
597,914
126.54
123.62
298.63
908.97
99,334
130.21
127.20
307.29
935.33
-617,371
133.98
130.89
316.20
962.46
-1,275,661
137.87
134.69
325.37
990.37
-1,465,353
141.86
138.59
334.81
1,019.09
-421,295
145.98
142.61
344.52
1,048.64
130,713
150.21
146.75
354.51
1,079.05
-676,872
154.57
151.00
364.79
1,110.35
817,826
159.05
155.38
375.37
1,142.55
-927,922
163.66
159.89
386.26
1,175.68
-168,415
EDTI OPERATING COST INCREASES
GOV Replacement Meters
S-S-06
Residential
Network
Polyphase
Demand
LMB-EG-04
Residential
Network
Polyphase
Demand
Incremental (LMB-GE-04 to S-S-06)
Residential
Network
Polyphase
Demand
Unit Rate
Residential
Network
Polyphase
Demand
DCF
GOV Meter Replacement Cost ($)
Incremental Meters x Unit Rate
31.33
20.48
14.67
151.37
Compliance Sampling
S-S-06
Residential
Network
Polyphase
Demand
LMB-EG-04
Residential
Network
Polyphase
Demand
Incremental (LMB-EG-04 to S-S-06)
Residential
Network
Polyphase
Demand
Compliance Sampling Unit Rate
Single Phase meters
Network meters
Polyphase meters
Demand meters
DCF
Compliance Sampling Cost ($)
February 28, 2014
Incremental Meters x Unit Rate
89.79
87.72
211.91
645.01
Appendix A-19 Attachment 1.xls
EDTI Operating
Page 4 of 6
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● Measurement Canada S-S-06 Implementation
($ millions)
1
2
3
4
5
6
7
8
9
Description
AMI - Capital
Capital Costs
Capital Meter Replacements
Capital Overhead
Total Capital Costs
AMI - Operating
EDTI Operating Costs
GOV Meter Replacement
Compliance Sampling
EDTI Operating Costs
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
February 28, 2014
A
Calculation
B
2014
C
2015
D
2016
E
2017
F
2018
G
2019
H
2020
I
2021
J
2022
K
2023
L
2024
M
2025
N
2026
O
2027
P
2028
Q
2029
R
2030
S
2031
T
2032
U
2033
V
2034
R1 x 6.0%
R1 + R2
(0.31)
(0.02)
(0.33)
(1.44)
(0.09)
(1.53)
(1.69)
(0.10)
(1.80)
(1.73)
(0.10)
(1.83)
(1.62)
(0.10)
(1.72)
(1.42)
(0.09)
(1.50)
(1.59)
(0.10)
(1.69)
(1.63)
(0.10)
(1.73)
(1.24)
(0.07)
(1.32)
(1.17)
(0.07)
(1.24)
0.43
0.03
0.45
(0.30)
(0.02)
(0.32)
(1.05)
(0.06)
(1.11)
(0.86)
(0.05)
(0.92)
(0.77)
(0.05)
(0.81)
(1.27)
(0.08)
(1.35)
(1.64)
(0.10)
(1.74)
(1.66)
(0.10)
(1.76)
(1.31)
(0.08)
(1.39)
(2.52)
(0.15)
(2.67)
(1.53)
(0.09)
(1.62)
R4 + R5
0.03
(0.32)
(0.29)
(0.43)
(0.46)
(0.89)
(0.51)
(0.63)
(1.13)
(0.37)
(0.69)
(1.07)
(0.58)
(0.55)
(1.13)
(0.55)
(0.35)
(0.90)
(0.59)
(0.32)
(0.91)
(0.60)
(0.29)
(0.89)
(0.62)
0.03
(0.59)
(0.61)
(0.09)
(0.70)
0.03
0.60
0.63
(0.25)
0.10
(0.15)
(0.56)
(0.62)
(1.18)
(0.60)
(1.28)
(1.88)
(0.30)
(1.47)
(1.77)
(0.80)
(0.42)
(1.22)
(0.85)
0.13
(0.72)
(0.83)
(0.68)
(1.50)
(0.81)
0.82
0.01
(1.13)
(0.93)
(2.05)
(0.75)
(0.17)
(0.92)
(0.62)
6.99%
(26.36)
(2.41)
(2.93)
(2.90)
(2.85)
(2.41)
(2.60)
(2.62)
(1.91)
(1.94)
1.08
(0.47)
(2.29)
(2.79)
(2.58)
(2.57)
(2.46)
(3.26)
(1.38)
(4.73)
(2.54)
R3 + R6
2014 F WACC
Appendix A-19 Attachment 1.xls
Cash Flow Table
Page 5 of 6
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● Measurement Canada S-S-06 Implementation
($ millions)
1
2
3
4
5
6
7
8
A
Calculation
Description
Capital Revenue Requirement - Meters
Return
Depreciation (6.7%)
Total Capital Revenue Requirement
R1 + R2
AMI - Incremental Operating Cost / Benefit
EDTI Operating Costs
Total: Incremental Cost / Benefit
R25 + R26
AMI - Incremental Revenue Requirement (RR) Impact
R3 + R6 + R9 + R12 +
Net Impact on RR
R15 + R18 + R21 + R24 R27
Discount Rate
2014 F WACC
Net Present Value
B
2014
C
2015
D
2016
E
2017
F
2018
G
2019
H
2020
I
2021
J
2022
K
2023
L
2024
M
2025
N
2026
O
2027
P
2028
Q
2029
R
2030
S
2031
T
2032
U
2033
V
2034
0.01
0.01
0.02
0.07
0.07
0.15
0.18
0.18
0.36
0.29
0.30
0.59
0.39
0.42
0.81
0.47
0.53
1.00
0.54
0.64
1.18
0.61
0.75
1.36
0.66
0.85
1.51
0.69
0.94
1.62
0.65
0.96
1.61
0.58
0.96
1.53
0.56
1.01
1.56
0.56
1.07
1.63
0.54
1.13
1.67
0.51
1.19
1.70
0.40
1.23
1.64
0.21
1.24
1.45
(0.02)
1.22
1.20
(0.22)
1.24
1.03
(0.38)
1.28
0.90
(0.29)
(0.29)
(0.89)
(0.89)
(1.13)
(1.13)
(1.07)
(1.07)
(1.13)
(1.13)
(0.90)
(0.90)
(0.91)
(0.91)
(0.89)
(0.89)
(0.59)
(0.59)
(0.70)
(0.70)
0.63
0.63
(0.15)
(0.15)
(1.18)
(1.18)
(1.88)
(1.88)
(1.77)
(1.77)
(1.22)
(1.22)
(0.72)
(0.72)
(1.50)
(1.50)
0.01
0.01
(2.05)
(2.05)
(0.92)
(0.92)
0.31
1.03
1.50
1.66
1.94
1.90
2.09
2.25
2.11
2.32
0.98
1.69
2.74
3.50
3.44
2.93
2.35
2.95
1.19
3.08
1.82
6.99%
20.42
● AMI Revenue Requirement Chart
$ Millions
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2018
2017
2016
($2.5)
2015
$0.0
2014
$2.5
2019
Incremental Impact to Revenue Requirement (RR)
(S-S-06 Capital RR & Incremental Operating Costs)
($5.0)
($7.5)
($10.0)
($12.5)
($15.0)
February 28, 2014
Year
Appendix A-19 Attachment 1.xls
Rev Requirement Table
Page 6 of 6
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 2 (AMR Drive by)
Worksheet: Cash Flow
● Positive Value = Benefit
● Negative Value = Cost
DCF NPV Summary
DCF Net Present Value ($)
30,006,264
Discount Rate (WACC) (%)
6.99%
Revenue Requirement NPV Summary
RR Net Present Value ($)
-26,878,390
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Capital Costs
Initial Project - System Costs
Fixed Network - Initial Capital Cost
Fixed Network - Installation Capital Cost
Hardware - NCC
Software - NCC
0
0
0
0
-500,000
0
0
-500,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Project - Meter Costs
AMI Meters
AMI Meters - Installation
0
0
-743,680
-305,700
-12,277,508
-5,937,978
-6,138,754
-2,968,989
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Project - Other Costs
Project Integration
0
-1,926,158
-371,950
-303,387
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Ongoing Costs
Fixed Network - Ongoing Capital Cost
AMI Premium on Meter Growth
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100%
0
-3,975,538
-18,587,436
-9,411,130
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6.00%
0
-238,532
-1,115,246
-564,668
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-4,214,070
-19,702,683
-9,975,798
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
394,381
1,856,491
0
2,149,984
0
2,213,605
0
2,096,373
0
1,726,210
0
1,816,677
0
1,912,549
0
1,354,303
509,946
1,359,875
0
1,120,031
0
1,204,341
0
1,162,457
0
237,633
0
309,155
0
1,077,524
0
1,624,819
662,096
1,342,728
0
1,825,916
0
2,213,694
0
1,128,306
100%
0
2,250,872
2,149,984
2,213,605
2,096,373
1,726,210
1,816,677
1,912,549
1,354,303
1,869,822
1,120,031
1,204,341
1,162,457
237,633
309,155
1,077,524
1,624,819
2,004,823
1,825,916
2,213,694
1,128,306
6.00%
0
135,052
128,999
132,816
125,782
103,573
109,001
114,753
81,258
112,189
67,202
72,260
69,747
14,258
18,549
64,651
97,489
120,289
109,555
132,822
67,698
Capital Benefits with Capital Overhead
0
2,385,925
2,278,983
2,346,421
2,222,155
1,829,782
1,925,678
2,027,302
1,435,561
1,982,011
1,187,232
1,276,601
1,232,205
251,891
327,704
1,142,176
1,722,308
2,125,113
1,935,471
2,346,516
1,196,005
NET AMI CAPITAL COSTS
0
-1,828,145
-17,423,700
-7,629,376
2,222,155
1,829,782
1,925,678
2,027,302
1,435,561
1,982,011
1,187,232
1,276,601
1,232,205
251,891
327,704
1,142,176
1,722,308
2,125,113
1,935,471
2,346,516
1,196,005
100%
0
0
0
0
0
-50,000
0
-50,000
0
-102,900
0
-102,900
0
-105,884
0
-105,884
0
-108,955
0
-108,955
0
-112,114
0
-112,114
0
-115,366
0
-115,366
0
-118,711
0
-118,711
0
-122,154
0
-122,154
0
-125,696
0
-125,696
0
-129,342
0
-129,342
0
-133,093
0
-133,093
0
-136,952
0
-136,952
0
-140,924
0
-140,924
0
-145,011
0
-145,011
0
-149,216
0
-149,216
0
-153,543
0
-153,543
0
-157,996
0
-157,996
0
-162,578
0
-162,578
0
-167,293
0
-167,293
0
-172,144
0
-172,144
100%
0
0
0
0
1,527,911
1,527,911
985,460
1,938,109
2,923,569
1,588,995
1,790,653
3,379,648
2,351,602
2,144,609
4,496,211
2,419,798
1,202,335
3,622,133
2,489,972
1,406,380
3,896,352
2,562,181
1,554,237
4,116,418
2,636,485
751,367
3,387,852
2,712,943
1,129,112
3,842,054
2,791,618
598,861
3,390,479
2,872,575
57,585
2,930,160
2,955,880
1,779,936
4,735,815
3,041,600
1,876,965
4,918,565
3,129,807
1,871,347
5,001,154
3,220,571
1,620,993
4,841,564
3,313,967
1,182,658
4,496,626
3,410,073
2,033,797
5,443,869
3,508,965
1,051,944
4,560,909
3,610,725
807,703
4,418,427
3,715,436
316,429
4,031,865
NET AMI OPERATING
0
1,477,911
2,820,669
3,273,764
4,387,256
3,510,019
3,780,986
3,997,707
3,265,698
3,716,358
3,261,137
2,797,068
4,598,863
4,777,641
4,856,143
4,692,348
4,343,082
5,285,873
4,398,331
4,251,135
3,859,721
NET ANNUAL CASH FLOW
0
-350,234
-14,603,031
-4,355,612
6,609,411
5,339,801
5,706,664
6,025,009
4,701,259
5,698,369
4,448,369
4,073,669
5,831,068
5,029,532
5,183,848
5,834,524
6,065,390
7,410,986
6,333,802
6,597,651
5,055,726
Capital Costs Before Capital Overhead
Capital Overhead
Capital Costs with Capital Overhead
Benefits
Replace FC200 Handheld Devices
Capital Meter Replacements
Capital Benefits before Capital Overhead
Capital Overhead
AMI OPERATING
EDTI Operating Costs
Load Center Operations
Annual Software Licence Fees
WAN Fees
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
EDTI Operating Benefits
NPV
IRR
February 28, 2014
30,006,264 --> 2015 + NPV(WACC, 2016 to end)
23.9%
Appendix A-19 Attachment 2.xls
Cash Flow
Page 1 of 9
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 2 (AMR Drive by)
Worksheet: Revenue Requirement
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Note: Retirement Logic not automatic - if depreciation rate changes, manually adjust retirements
1
s
s
Initial Project AMI Meters + AMI Meters Installation
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Initial Project AMI Meters + Installation)
Retirements (Initial Project AMI Meters + Installation)
Capital Additions (incl. OH) (Ongoing Cost AMI Premium on Growth Meters)
Retirements (Ongoing Cost AMI Premium on Growth Meters)
Closing Balance
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
15
15
6.67%
Capital Revenue Requirement
4,000,000
3,000,000
2,000,000
1,000,000
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21
Capital Revenue Requirement
Return
Depreciation
Total
s
s
6.99%
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Fixed Network Initial Capital + Installation)
Retirements (Fixed Network Initial Capital + Installation)
Capital Additions (incl. OH) (Ongoing Cost Fixed Network)
Retirements (Ongoing Cost Fixed Network)
Closing Balance - Asset
Mid-Year Asset Balance
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
15
15
6.67%
Capital Revenue Requirement
20,420,758
9,654,208
0
0
0
30,074,966
25,247,862
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
0
0
0
30,074,966
30,074,966
30,074,966
0
-1,112,343
0
0
28,962,623
29,518,795
28,962,623
0
-19,308,415
0
0
9,654,208
19,308,415
9,654,208
0
-9,654,208
0
0
0
4,827,104
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-37,078
0
-37,078
-18,539
-37,078
-717,770
0
-754,848
-395,963
-754,848
-1,683,191
0
-2,438,039
-1,596,444
-2,438,039
-2,004,998
0
-4,443,037
-3,440,538
-4,443,037
-2,004,998
0
-6,448,034
-5,445,536
-6,448,034
-2,004,998
0
-8,453,032
-7,450,533
-8,453,032
-2,004,998
0
-10,458,030
-9,455,531
-10,458,030
-2,004,998
0
-12,463,028
-11,460,529
-12,463,028
-2,004,998
0
-14,468,025
-13,465,526
-14,468,025
-2,004,998
0
-16,473,023
-15,470,524
-16,473,023
-2,004,998
0
-18,478,021
-17,475,522
-18,478,021
-2,004,998
0
-20,483,019
-19,480,520
-20,483,019
-2,004,998
0
-22,488,016
-21,485,517
-22,488,016
-2,004,998
0
-24,493,014
-23,490,515
-24,493,014
-2,004,998
0
-26,498,012
-25,495,513
-26,498,012
-1,967,920
1,112,343
-27,353,589
-26,925,800
-27,353,589
-1,287,228
19,308,415
-9,332,401
-18,342,995
-9,332,401
-321,807
9,654,208
0
-4,666,200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,075,265
537,632
1,075,265
19,665,910
10,370,587
19,665,910
27,636,927
23,651,419
27,636,927
25,631,929
26,634,428
25,631,929
23,626,932
24,629,430
23,626,932
21,621,934
22,624,433
21,621,934
19,616,936
20,619,435
19,616,936
17,611,938
18,614,437
17,611,938
15,606,941
16,609,440
15,606,941
13,601,943
14,604,442
13,601,943
11,596,945
12,599,444
11,596,945
9,591,947
10,594,446
9,591,947
7,586,950
8,589,449
7,586,950
5,581,952
6,584,451
5,581,952
3,576,954
4,579,453
3,576,954
1,609,035
2,592,994
1,609,035
321,807
965,421
321,807
0
160,903
0
0
0
0
0
0
0
0
0
37,581
37,078
74,659
724,904
717,770
1,442,674
1,653,234
1,683,191
3,336,425
1,861,747
2,004,998
3,866,744
1,721,597
2,004,998
3,726,595
1,581,448
2,004,998
3,586,446
1,441,299
2,004,998
3,446,296
1,301,149
2,004,998
3,306,147
1,161,000
2,004,998
3,165,998
1,020,850
2,004,998
3,025,848
880,701
2,004,998
2,885,699
740,552
2,004,998
2,745,550
600,402
2,004,998
2,605,400
460,253
2,004,998
2,465,251
320,104
2,004,998
2,325,102
181,250
1,967,920
2,149,170
67,483
1,287,228
1,354,711
11,247
321,807
333,054
0
0
0
0
0
0
0
0
0
0
0
0
0
0
530,000
0
0
0
530,000
265,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
0
0
0
530,000
530,000
530,000
0
-530,000
0
0
0
265,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-17,667
0
-17,667
-8,833
-17,667
-35,333
0
-53,000
-35,333
-53,000
-35,333
0
-88,333
-70,667
-88,333
-35,333
0
-123,667
-106,000
-123,667
-35,333
0
-159,000
-141,333
-159,000
-35,333
0
-194,333
-176,667
-194,333
-35,333
0
-229,667
-212,000
-229,667
-35,333
0
-265,000
-247,333
-265,000
-35,333
0
-300,333
-282,667
-300,333
-35,333
0
-335,667
-318,000
-335,667
-35,333
0
-371,000
-353,333
-371,000
-35,333
0
-406,333
-388,667
-406,333
-35,333
0
-441,667
-424,000
-441,667
-35,333
0
-477,000
-459,333
-477,000
-35,333
0
-512,333
-494,667
-512,333
-17,667
530,000
0
-256,167
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
512,333
256,167
512,333
477,000
494,667
477,000
441,667
459,333
441,667
406,333
424,000
406,333
371,000
388,667
371,000
335,667
353,333
335,667
300,333
318,000
300,333
265,000
282,667
265,000
229,667
247,333
229,667
194,333
212,000
194,333
159,000
176,667
159,000
123,667
141,333
123,667
88,333
106,000
88,333
53,000
70,667
53,000
17,667
35,333
17,667
0
8,833
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17,906
17,667
35,573
34,577
35,333
69,911
32,107
35,333
67,441
29,638
35,333
64,971
27,168
35,333
62,501
24,698
35,333
60,031
22,228
35,333
57,562
19,758
35,333
55,092
17,289
35,333
52,622
14,819
35,333
50,152
12,349
35,333
47,682
9,879
35,333
45,213
7,409
35,333
42,743
4,940
35,333
40,273
2,470
35,333
37,803
617
17,667
18,284
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
80,000
60,000
40,000
20,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Capital Revenue Requirement
Return
Depreciation
Total
s
1,112,343
19,308,415
0
0
0
20,420,758
10,766,551
Fixed Network (Initial Capital + Installation) + Fixed Network (Ongoing Cost)
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
3
0
1,112,343
0
0
0
1,112,343
556,171
5,000,000
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
2
0
0
0
0
0
0
0
20
21
6.99%
NCC System (Software)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Software NCC )
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
10
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
February 28, 2014
10.00%
Capital Revenue Requirement
1
1
1
0
0
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.99%
Appendix A-19 Attachment 2.xls
Rev Req
Page 2 of 9
EPCOR Distribution & Transmission Inc.
4
s
2014-2015 PBR Capital Tracker
NCC System (Hardware)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Hardware NCC)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
4
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
25.00%
Capital Revenue Requirement
s
150,000
100,000
50,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
530,000
0
0
530,000
530,000
530,000
0
0
530,000
530,000
530,000
0
0
530,000
530,000
530,000
0
-530,000
0
265,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-66,250
0
-66,250
-33,125
-66,250
-132,500
0
-198,750
-132,500
-198,750
-132,500
0
-331,250
-265,000
-331,250
-132,500
0
-463,750
-397,500
-463,750
-66,250
530,000
0
-231,875
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
463,750
231,875
463,750
331,250
397,500
331,250
198,750
265,000
198,750
66,250
132,500
66,250
0
33,125
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
21
0
0
0
16,208
66,250
82,458
27,785
132,500
160,285
18,524
132,500
151,024
9,262
132,500
141,762
2,315
66,250
68,565
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,813,091
0
1,813,091
906,545
1,813,091
159,000
0
1,972,091
1,892,591
1,972,091
79,500
0
2,051,591
2,011,841
2,051,591
0
0
2,051,591
2,051,591
2,051,591
0
0
2,051,591
2,051,591
2,051,591
0
0
2,051,591
2,051,591
2,051,591
0
0
2,051,591
2,051,591
2,051,591
0
0
2,051,591
2,051,591
2,051,591
0
0
2,051,591
2,051,591
2,051,591
0
0
2,051,591
2,051,591
2,051,591
0
-1,813,091
238,500
1,145,045
238,500
0
-159,000
79,500
159,000
79,500
0
-79,500
0
39,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-90,655
0
-90,655
-45,327
-90,655
-189,259
0
-279,914
-185,284
-279,914
-201,184
0
-481,098
-380,506
-481,098
-205,159
0
-686,257
-583,677
-686,257
-205,159
0
-891,416
-788,836
-891,416
-205,159
0
-1,096,575
-993,995
-1,096,575
-205,159
0
-1,301,734
-1,199,154
-1,301,734
-205,159
0
-1,506,893
-1,404,313
-1,506,893
-205,159
0
-1,712,052
-1,609,472
-1,712,052
-205,159
0
-1,917,211
-1,814,631
-1,917,211
-114,505
1,813,091
-218,625
-1,067,918
-218,625
-15,900
159,000
-75,525
-147,075
-75,525
-3,975
79,500
-0
-37,763
-0
0
0
-0
-0
-0
0
0
-0
-0
-0
0
0
-0
-0
-0
0
0
-0
-0
-0
0
0
-0
-0
-0
0
0
-0
-0
-0
0
0
-0
-0
0
0
0
0
1,722,436
861,218
1,722,436
1,692,177
1,707,306
1,692,177
1,570,493
1,631,335
1,570,493
1,365,334
1,467,913
1,365,334
1,160,175
1,262,754
1,160,175
955,016
1,057,595
955,016
749,857
852,436
749,857
544,698
647,277
544,698
339,539
442,118
339,539
134,380
236,959
134,380
19,875
77,127
19,875
3,975
11,925
3,975
-0
1,987
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
0
0
0
60,199
90,655
150,854
119,341
189,259
308,600
114,030
201,184
315,214
102,607
205,159
307,766
88,267
205,159
293,426
73,926
205,159
279,085
59,585
205,159
264,744
45,245
205,159
250,404
30,904
205,159
236,063
16,563
205,159
221,722
5,391
114,505
119,896
834
15,900
16,734
139
3,975
4,114
-0
0
-0
-0
0
-0
-0
0
-0
-0
0
-0
-0
0
-0
-0
0
-0
-0
0
-0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Project Integration (EDTI Costs)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
10
10.00%
Capital Revenue Requirement
400,000
300,000
200,000
100,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
-100,000
Capital Revenue Requirement
Return
Depreciation
Total
s
19
6.99%
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
6
0
530,000
0
530,000
265,000
200,000
Capital Revenue Requirement
Return
Depreciation
Total
5
0
0
0
0
0
6.99%
Project Integration (Vendor Costs)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
15
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
February 28, 2014
6.67%
Capital Revenue Requirement
1
1
1
0
0
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.99%
Appendix A-19 Attachment 2.xls
Rev Req
Page 3 of 9
EPCOR Distribution & Transmission Inc.
7
s
2014-2015 PBR Capital Tracker
Project Integration (Customer Awareness Program)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
s
463,904
242,090
0
705,994
584,949
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
-228,637
477,357
591,675
477,357
0
-235,267
242,090
359,723
242,090
0
-242,090
0
121,045
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-7,621
0
-7,621
-3,811
-7,621
-23,085
0
-30,706
-19,164
-30,706
-38,997
0
-69,702
-50,204
-69,702
-47,066
0
-116,769
-93,236
-116,769
-47,066
0
-163,835
-140,302
-163,835
-47,066
0
-210,901
-187,368
-210,901
-47,066
0
-257,968
-234,434
-257,968
-47,066
0
-305,034
-281,501
-305,034
-47,066
0
-352,100
-328,567
-352,100
-47,066
0
-399,166
-375,633
-399,166
-47,066
0
-446,233
-422,699
-446,233
-47,066
0
-493,299
-469,766
-493,299
-47,066
0
-540,365
-516,832
-540,365
-47,066
0
-587,431
-563,898
-587,431
-47,066
0
-634,498
-610,964
-634,498
-39,445
228,637
-445,306
-539,902
-445,306
-23,982
235,267
-234,020
-339,663
-234,020
-8,070
242,090
0
-117,010
0
0
0
0
0
0
0
0
0
0
0
0
0
0
221,015
110,508
221,015
433,198
327,107
433,198
636,291
534,745
636,291
589,225
612,758
589,225
542,159
565,692
542,159
495,093
518,626
495,093
448,026
471,559
448,026
400,960
424,493
400,960
353,894
377,427
353,894
306,828
330,361
306,828
259,761
283,294
259,761
212,695
236,228
212,695
165,629
189,162
165,629
118,563
142,096
118,563
71,496
95,029
71,496
32,051
51,774
32,051
8,070
20,060
8,070
0
4,035
0
0
0
0
0
0
0
0
0
7,724
7,621
15,346
22,865
23,085
45,949
37,379
38,997
76,375
42,832
47,066
89,898
39,542
47,066
86,608
36,252
47,066
83,318
32,962
47,066
80,028
29,672
47,066
76,738
26,382
47,066
73,448
23,092
47,066
70,158
19,802
47,066
66,869
16,512
47,066
63,579
13,222
47,066
60,289
9,932
47,066
56,999
6,643
47,066
53,709
3,619
39,445
43,064
1,402
23,982
25,384
282
8,070
8,352
0
0
0
0
0
0
0
0
0
0
0
0
-2,385,925
0
-2,385,925
-1,192,962
-2,385,925
-2,278,983
0
-4,664,907
-3,525,416
-4,664,907
-2,346,421
0
-7,011,329
-5,838,118
-7,011,329
-2,222,155
0
-9,233,484
-8,122,407
-9,233,484
-1,829,782
0
-11,063,267
-10,148,375
-11,063,267
-1,925,678
0
-12,988,944
-12,026,106
-12,988,944
-2,027,302
0
-15,016,246
-14,002,595
-15,016,246
-1,435,561
0
-16,451,807
-15,734,027
-16,451,807
-1,982,011
0
-18,433,818
-17,442,813
-18,433,818
-1,187,232
0
-19,621,051
-19,027,434
-19,621,051
-1,276,601
0
-20,897,652
-20,259,351
-20,897,652
-1,232,205
0
-22,129,857
-21,513,754
-22,129,857
-251,891
0
-22,381,748
-22,255,802
-22,381,748
-327,704
0
-22,709,452
-22,545,600
-22,709,452
-1,142,176
0
-23,851,628
-23,280,540
-23,851,628
-1,722,308
2,385,925
-23,188,011
-23,519,819
-23,188,011
-2,125,113
2,278,983
-23,034,141
-23,111,076
-23,034,141
-1,935,471
2,346,421
-22,623,190
-22,828,666
-22,623,190
-2,346,516
2,222,155
-22,747,551
-22,685,371
-22,747,551
-1,196,005
1,829,782
-22,113,773
-22,430,662
0
0
0
0
0
0
79,531
0
79,531
39,765
79,531
235,028
0
314,559
197,045
314,559
389,208
0
703,766
509,162
703,766
541,494
0
1,245,260
974,513
1,245,260
676,558
0
1,921,819
1,583,539
1,921,819
801,740
0
2,723,559
2,322,689
2,723,559
933,506
0
3,657,065
3,190,312
3,657,065
1,048,935
0
4,706,000
4,181,533
4,706,000
1,162,854
0
5,868,855
5,287,428
5,868,855
1,268,496
0
7,137,350
6,503,102
7,137,350
1,350,623
0
8,487,974
7,812,662
8,487,974
1,434,250
0
9,922,224
9,205,099
9,922,224
1,483,720
0
11,405,944
10,664,084
11,405,944
1,503,040
0
12,908,984
12,157,464
12,908,984
1,552,036
0
14,461,020
13,685,002
14,461,020
1,567,988
-2,385,925
13,643,083
14,052,052
13,643,083
1,540,738
-2,278,983
12,904,839
13,273,961
12,904,839
1,521,911
-2,346,421
12,080,329
12,492,584
12,080,329
1,512,358
-2,222,155
11,370,531
11,725,430
11,370,531
1,495,377
-1,829,782
11,036,126
11,203,329
0
0
0
0
-2,306,394
-1,153,197
-2,306,394
-4,350,349
-3,328,371
-4,350,349
-6,307,562
-5,328,956
-6,307,562
-7,988,224
-7,147,893
-7,988,224
-9,141,448
-8,564,836
-9,141,448
-10,265,385
-9,703,417
-10,265,385
-11,359,181
-10,812,283
-11,359,181
-11,745,807
-11,552,494
-11,745,807
-12,564,964
-12,155,385
-12,564,964
-12,483,700
-12,524,332
-12,483,700
-12,409,678
-12,446,689
-12,409,678
-12,207,633
-12,308,655
-12,207,633
-10,975,803
-11,591,718
-10,975,803
-9,800,468
-10,388,136
-9,800,468
-9,390,607
-9,595,538
-9,390,607
-9,544,928
-9,467,768
-9,544,928
-10,129,302
-9,837,115
-10,129,302
-10,542,862
-10,336,082
-10,542,862
-11,377,020
-10,959,941
-11,377,020
-11,077,647
-11,227,333
6.99%
0
0
0
-80,608
-79,531
-160,139
-232,653
-235,028
-467,681
-372,494
-389,208
-761,702
-499,638
-541,494
-1,041,132
-598,682
-676,558
-1,275,240
-678,269
-801,740
-1,480,009
-755,779
-933,506
-1,689,285
-807,519
-1,048,935
-1,856,454
-849,661
-1,162,854
-2,012,516
-875,451
-1,268,496
-2,143,946
-870,024
-1,350,623
-2,220,647
-860,375
-1,434,250
-2,294,625
-810,261
-1,483,720
-2,293,981
-726,131
-1,503,040
-2,229,171
-670,728
-1,552,036
-2,222,764
-661,797
-1,567,988
-2,229,785
-687,614
-1,540,738
-2,228,353
-722,492
-1,521,911
-2,244,403
-766,100
-1,512,358
-2,278,458
-784,791
-1,495,377
-2,280,168
100%
100%
0
0
0
-50,000
1,527,911
1,477,911
-102,900
2,923,569
2,820,669
-105,884
3,379,648
3,273,764
-108,955
4,496,211
4,387,256
-112,114
3,622,133
3,510,019
-115,366
3,896,352
3,780,986
-118,711
4,116,418
3,997,707
-122,154
3,387,852
3,265,698
-125,696
3,842,054
3,716,358
-129,342
3,390,479
3,261,137
-133,093
2,930,160
2,797,068
-136,952
4,735,815
4,598,863
-140,924
4,918,565
4,777,641
-145,011
5,001,154
4,856,143
-149,216
4,841,564
4,692,348
-153,543
4,496,626
4,343,082
-157,996
5,443,869
5,285,873
-162,578
4,560,909
4,398,331
-167,293
4,418,427
4,251,135
-172,144
4,031,865
3,859,721
0
0
0
0
59,010
139,740
1,477,911
-1,279,162
696,819
862,919
2,820,669
-1,260,931
1,482,780
1,701,997
3,273,764
-88,987
1,546,447
1,883,563
4,387,256
-957,246
1,280,207
1,682,248
3,510,019
-547,564
1,038,055
1,490,816
3,780,986
-1,252,115
800,295
1,359,050
3,997,707
-1,838,361
588,305
1,243,621
3,265,698
-1,433,772
385,913
1,129,702
3,716,358
-2,200,742
199,874
1,024,061
3,261,137
-2,037,202
48,220
851,278
2,797,068
-1,897,569
-92,598
669,047
4,598,863
-4,022,414
-189,088
607,652
4,777,641
-4,359,077
-251,005
584,357
4,856,143
-4,522,791
-341,512
535,361
4,692,348
-4,498,499
-476,310
457,043
4,343,082
-4,362,349
-618,729
-229,529
5,285,873
-6,134,132
-710,963
-1,192,034
4,398,331
-6,301,329
-766,100
-1,512,358
4,251,135
-6,529,593
-784,791
-1,495,377
3,859,721
-6,139,889
-17,423,700
-17,423,700
0
-7,629,376
-7,629,376
0
2,222,155
2,222,155
0
1,829,782
1,829,782
0
1,925,678
1,925,678
0
2,027,302
2,027,302
0
1,435,561
1,435,561
0
1,982,011
1,982,011
0
1,187,232
1,187,232
0
1,276,601
1,276,601
0
1,232,205
1,232,205
0
251,891
251,891
0
327,704
327,704
0
1,142,176
1,142,176
0
1,722,308
1,722,308
0
2,125,113
2,125,113
0
1,935,471
1,935,471
0
2,346,516
2,346,516
0
1,196,005
1,196,005
0
Capital Revenue Requirement
100,000
80,000
60,000
40,000
20,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.99%
Capital Asset
Opening Balance
Capital Additions (incl. OH)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
15
6.67%
Capital Revenue Requirement
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21
-500,000
-1,000,000
-1,500,000
-2,000,000
-2,500,000
AMI EDTI Operating Cost / Benefits
EDTI Operating Costs
EDTI Operating Benefits
Total AMI EDTI Operating Cost / Benefits
10
228,637
235,267
0
463,904
346,270
Capital Benefits (FC200 Devices, Capital Meter Replacements)
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
9
0
228,637
0
228,637
114,318
6.67%
Capital Revenue Requirement
Return
Depreciation
Total
8
0
0
0
0
0
15
Incremental Revenue Requirement - AMI
Return
Depreciation
AMI Incremental Operating Cost / Benefits
Net Impact on Revenue Requirement
NPV
Check capital
CF capital
Difference
-26,878,390
0
0
0
-1,828,145
-1,828,145
0
Cap. Cost Sensitivity % Ref.
Cap. Ben. Sensitivity % Ref.
February 28, 2014
100%
100%
Appendix A-19 Attachment 2.xls
Rev Req
Page 4 of 9
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 2 (AMR Drive by)
Worksheet: EDTI Capital
● 'DCF' dentoes the row is referenced in the Discounted Cash Flow Worksheet
Year
Capital Escalation Rate (%)
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
EDTI CAPITAL COSTS
AMI METER DEPLOYMENT FORECAST (INITIAL PROJECT)
Single Phase Meters
Network Meters
Polyphase Meters
Demand Meters
Total (end of year)
Meter Population - Pre Installation
$48
$114
$186
$207
299,482
41,407
20,391
621
361,901
304,695
42,128
20,746
632
368,201
Meter Population (incl. 2015 Growth) - Installation Contract
Phase 1 Phase 2 (18 mth deployment)
Total
6,000
162,257
81,128
249,385
4,000
20,320
10,160
34,481
11,320
5,660
16,980
0
345
172
517
10,000
194,242
97,121
301,363 * AMR inventory removed from projected meter population
AMI SYSTEMS (INITIAL PROJECT)
DCF Fixed Network - Initial Capital Cost
DCF Fixed Network - Installation Capital Cost
20 units @ 25,000
-500,000
0
DCF Hardware - Network Control System
DCF Software - MDMS
0
-500,000
METERS (INITIAL PROJECT)
DCF Meters
DCF Meters - Installation
-743,680
-305,700
-12,277,508
-5,937,978
-6,138,754
-2,968,989
0
-1,710,463
0
-215,695
-1,926,158
-150,000
0
-221,950
-371,950
-75,000
0
-228,387
-303,387
0
-3,975,538
-18,587,436
-9,411,130
-1.66
7,670
0%
0
-1.71
7,831
0%
0
-1.76
7,996
0%
0
-1.81
8,164
0%
0
-1.86
8,335
0%
0
-1.91
8,510
0%
0
-1.97
8,689
0%
0
-2.03
8,871
0%
0
-2.09
9,058
0%
0
-2.15
9,248
0%
0
-2.21
9,442
0%
0
-2.27
9,640
0%
0
-2.34
9,843
0%
0
-2.41
10,050
0%
0
-2.48
10,261
0%
0
-2.55
10,476
0%
0
-2.62
10,696
0%
0
-2.70
10,921
0%
0
-2.78
11,150
0%
0
-2.86
11,384
0%
0
7,831
7,996
8,164
8,335
8,510
8,689
8,871
9,058
9,248
9,442
9,640
9,843
10,050
10,261
10,476
10,696
10,921
11,150
11,384
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
-52.00
0%
0
$63.58
$30.57
OTHER CAPITAL COSTS (INITIAL PROJECT)
Project Integration - EPCOR Resources
Project Integration - AMI Vendor Resources
Customer Awareness Program
DCF Project Integration ($)
AMI Deployment (Initial Project) Total ($)
Fixed Network - Growth
Fixed Network Cost ($ per Meter)
Annual Increase in Meters
Realization Factor (%)
DCF Fixed Network - Growth Capital Cost
Incremental AMI Premium - Growth Meters Cost
New Power Meters Forecast
from Operating worksheet
AMI Meter Cost Premium ($ per Meter)
AMI minus AMR
AMI Meter Premium ($ per Meter)
Realization Factor (%)
DCF Incremental AMI Premium - Growth
EDTI CAPITAL BENEFITS
Replacement of FC200 Handheld Devices
Cost ($ per Device)
Escalated Cost ($ per Device)
5,500
Estimated Meter Readers (start of 2014)
Meter Reader FTE Increase Due to Growth
from Ops. Worksheet
Cumulative Meter Reader FTE Increase
2014 onward
Large-Scale Major Device Replacement
4:1 spare
DCF Capital Benefit of Not Having to Replace FC200 Devices
Meter Capital Replacements
2014F
Gov Meter Replacements - Meter Quantity (Status Quo - AMI)
Single Phase Meters
$76.17
Network Meters
$126.21
Polyphase Meters
$236.80
Demand Meters
$644.27
Meter Replacements Cost
Compliance Sampling Meter Replacements
Single Phase Meters
Replacement %
Replacement - Capital Cost
Network Meters
Replacement %
Replacement - Capital Cost
Polyphase Meters
Replacement %
Replacement - Capital Cost
Demand Meters
Replacement %
Replacement - Capital Cost
Compliance Sampling Meter Replacement Cost
Realization Factors (%)
DCF Capital Benefit of Meter Replacement Reduction
February 28, 2014
$76.17
$126.21
$236.80
$644.27
0
0
5,660
5,824
5,993
6,166
6,345
6,529
6,718
6,913
7,114
7,320
7,532
7,751
7,976
8,207
8,445
8,690
8,942
9,201
9,468
9,742
10,025
54
0.00
0.00
0
0
0.18
0.18
68
394,381
0.18
0.36
0
0
0.18
0.54
0
0
0.19
0.73
0
0
0.19
0.92
0
0
0.20
1.12
0
0
0.20
1.32
0
0
0.20
1.52
0
0
0.21
1.73
70
509,946
0.21
1.94
0
0
0.22
2.16
0
0
0.22
2.38
0
0
0.23
2.61
0
0
0.23
2.84
0
0
0.24
3.08
0
0
0.24
3.32
0
0
0.25
3.57
72
662,096
0.25
3.82
0
0
0.26
4.08
0
0
0.26
4.34
0
0
0
0
0
0
0
13,194
1,982
0
0
1,255,135
16,912
0
0
0
1,288,187
9,432
4,265
861
0
1,460,606
17,261
290
0
0
1,351,371
15,801
1,624
114
0
1,435,522
13,613
2,767
260
184
1,566,239
13,464
2,288
711
161
1,586,414
15,030
264
211
29
1,246,803
14,687
0
0
176
1,232,100
12,997
0
0
0
989,981
12,330
996
0
0
1,064,881
13,411
-1,250
-195
0
817,577
3,600
-1,994
-590
0
-117,163
4,139
-1,595
-798
0
-75,004
11,323
-77
-358
191
891,036
8,435
2,878
195
618
1,450,061
7,830
1,754
190
391
1,114,685
12,415
2,571
452
473
1,681,910
11,263
1,579
1,269
829
1,891,787
12,271
3,529
1,157
-1,000
1,009,785
0
60%
0
0
50%
0
0
60%
0
0
70%
0
0
5,675
60%
259,359
1,300
50%
82,037
560
60%
79,565
400
70%
180,396
601,356
4,510
60%
206,116
765
50%
48,275
720
60%
102,298
1,120
70%
505,108
861,797
3,845
50%
146,437
2,225
40%
112,327
1,040
50%
123,136
960
60%
371,100
752,999
3,745
45%
128,365
1,120
35%
49,474
800
45%
85,248
1,360
55%
481,914
745,002
3,360
40%
102,372
650
30%
24,611
640
40%
60,621
320
50%
103,083
290,687
2,765
35%
73,714
1,085
25%
34,234
320
35%
26,522
400
45%
115,969
250,438
3,290
35%
87,710
1,675
25%
52,850
560
35%
46,413
480
45%
139,162
326,135
1,640
30%
37,476
240
20%
6,058
320
30%
22,733
160
40%
41,233
107,500
780
25%
14,853
525
20%
13,252
160
25%
9,472
400
35%
90,198
127,775
1,865
20%
28,411
605
20%
15,271
240
25%
14,208
320
35%
72,158
130,049
4,265
15%
48,730
775
15%
14,672
240
25%
14,208
320
30%
61,850
139,460
3,470
15%
39,646
1,370
15%
25,936
800
25%
47,360
1,200
30%
231,937
344,880
4,050
15%
46,273
1,610
15%
30,480
1,040
25%
61,568
1,120
30%
216,475
354,796
2,715
15%
31,020
1,200
15%
22,718
880
25%
52,096
1,440
30%
278,325
384,159
2,980
15%
34,048
650
15%
12,305
800
25%
47,360
480
30%
92,775
186,488
1,560
15%
17,824
1,005
15%
19,026
240
25%
14,208
640
30%
123,700
174,758
3,870
15%
44,217
1,675
15%
31,710
480
25%
28,416
640
30%
123,700
228,043
5,210
15%
59,527
695
15%
13,157
160
25%
9,472
320
30%
61,850
144,006
3,550
15%
40,561
925
15%
17,512
800
25%
47,360
1,120
30%
216,475
321,907
2,265
15%
25,879
1,325
15%
25,084
880
25%
52,096
80
30%
15,462
118,521
0%
0
100%
1,856,491
100%
2,149,984
100%
2,213,605
100%
2,096,373
100%
1,726,210
100%
1,816,677
100%
1,912,549
100%
1,354,303
100%
1,359,875
100%
1,120,031
100%
1,204,341
100%
1,162,457
100%
237,633
100%
309,155
100%
1,077,524
100%
1,624,819
100%
1,342,728
100%
1,825,916
100%
2,213,694
100%
1,128,306
Appendix A-19 Attachment 2.xls
EDTI Capital
Page 5 of 9
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 2 (AMR Drive by)
Worksheet: EDTI Operating
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Operating Escalation Rate (%)
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
-111,287
-113,270
-124,012
-114,514
-116,555
-127,608
-117,835
-119,935
-131,309
0.0
0.0
0.0
0
-121,252
-123,413
-135,117
0.0
0.0
0.0
0
-124,769
-126,992
-139,035
0.0
0.0
0.0
0
-128,387
-130,675
-143,067
0.0
0.0
0.0
0
-132,110
-134,464
-147,216
0.0
0.0
0.0
0
-135,942
-138,364
-151,486
0.0
0.0
0.0
0
-139,884
-142,376
-155,879
0.0
0.0
0.0
0
-143,940
-146,505
-160,399
0.0
0.0
0.0
0
-148,115
-150,754
-165,051
0.0
0.0
0.0
0
-152,410
-155,126
-169,837
0.0
0.0
0.0
0
-156,830
-159,624
-174,762
0.0
0.0
0.0
0
-161,378
-164,254
-179,831
0.0
0.0
0.0
0
-166,058
-169,017
-185,046
0.0
0.0
0.0
0
-170,874
-173,918
-190,412
0.0
0.0
0.0
0
-175,829
-178,962
-195,934
0.0
0.0
0.0
0
-180,928
-184,152
-201,616
0.0
0.0
0.0
0
-186,175
-189,492
-207,463
0.0
0.0
0.0
0
-191,574
-194,988
-213,479
0.0
0.0
0.0
0
-197,130
-200,642
-219,670
0.0
0.0
0.0
0
-202,846
-206,461
-226,041
0.0
0.0
0.0
0
-100,000
50%
-50,000
-102,900
100%
-102,900
-105,884
100%
-105,884
-108,955
100%
-108,955
-112,114
100%
-112,114
-115,366
100%
-115,366
-118,711
100%
-118,711
-122,154
100%
-122,154
-125,696
100%
-125,696
-129,342
100%
-129,342
-133,093
100%
-133,093
-136,952
100%
-136,952
-140,924
100%
-140,924
-145,011
100%
-145,011
-149,216
100%
-149,216
-153,543
100%
-153,543
-157,996
100%
-157,996
-162,578
100%
-162,578
-167,293
100%
-167,293
-172,144
100%
-172,144
-36,000
0%
0
-37,044
0%
0
-38,118
0%
0
-39,224
0%
0
-40,361
0%
0
-41,532
0%
0
-42,736
0%
0
-43,975
0%
0
-45,251
0%
0
-46,563
0%
0
-47,913
0%
0
-49,303
0%
0
-50,733
0%
0
-52,204
0%
0
-53,718
0%
0
-55,276
0%
0
-56,879
0%
0
-58,528
0%
0
-60,225
0%
0
-61,972
0%
0
3,577,500
1,908,131
391,167
0%
0
3,681,248
1,963,467
402,511
50%
1,060,146
3,788,004
2,020,407
414,183
75%
1,636,335
3,897,856
2,078,999
426,195
100%
2,245,052
4,010,894
2,139,290
438,554
100%
2,310,158
4,127,210
2,201,329
451,273
100%
2,377,153
4,246,899
2,265,168
464,359
100%
2,446,090
4,370,059
2,330,858
477,826
100%
2,517,027
4,496,790
2,398,453
491,683
100%
2,590,020
4,627,197
2,468,008
505,942
100%
2,665,131
4,761,386
2,539,580
520,614
100%
2,742,420
4,899,466
2,613,228
535,712
100%
2,821,950
5,041,551
2,689,012
551,247
100%
2,903,787
5,187,756
2,766,993
567,234
100%
2,987,996
5,338,201
2,847,236
583,683
100%
3,074,648
5,493,008
2,929,806
600,610
100%
3,163,813
5,652,306
3,014,770
618,028
100%
3,255,564
5,816,223
3,102,198
635,951
100%
3,349,975
5,984,893
3,192,162
654,393
100%
3,447,124
6,158,455
3,284,735
673,371
100%
3,547,091
2.10%
372,924
7,670
520,755
0.18
0.18
79,447
14,042
0%
0
2.10%
380,755
7,831
520,755
0.18
0.36
81,751
29,203
0%
0
2.10%
388,751
7,996
520,755
0.18
0.54
84,122
45,549
0%
0
2.10%
396,915
8,164
520,755
0.19
0.73
86,561
63,154
0%
0
2.10%
405,250
8,335
520,755
0.19
0.92
89,072
82,094
0%
0
2.10%
413,760
8,510
520,755
0.20
1.12
91,655
102,448
0%
0
2.10%
422,449
8,689
520,755
0.20
1.32
94,313
124,303
0%
0
2.10%
431,321
8,871
520,755
0.20
1.52
97,048
147,747
0%
0
2.10%
440,379
9,058
520,755
0.21
1.73
99,862
172,875
0%
0
2.10%
449,626
9,248
520,755
0.21
1.94
102,758
199,787
0%
0
2.10%
459,069
9,442
520,755
0.22
2.16
105,738
228,587
0%
0
2.10%
468,709
9,640
520,755
0.22
2.38
108,805
259,387
0%
0
2.10%
478,552
9,843
520,755
0.23
2.61
111,960
292,303
0%
0
2.10%
488,602
10,050
520,755
0.23
2.84
115,207
327,460
0%
0
2.10%
498,862
10,261
520,755
0.24
3.08
118,548
364,985
0%
0
2.10%
509,338
10,476
520,755
0.24
3.32
121,986
405,018
0%
0
2.10%
520,034
10,696
520,755
0.25
3.57
125,523
447,702
0%
0
2.10%
530,955
10,921
520,755
0.25
3.82
129,163
493,189
0%
0
2.10%
542,105
11,150
520,755
0.26
4.08
132,909
541,641
0%
0
2.10%
553,489
11,384
520,755
0.26
4.34
136,763
593,226
0%
0
EDTI OPERATING COSTS
AMI Load Center Operations Cost
Salary & Benefits - AMI Operator
Salary & Benefits - Field Support
Salary & Benefits - IT Support
FTE Requirements - AMI Operators
FTE Requirements - Field Support
FTE Requirements - IT Support
DCF AMI Load Centre Operations Cost
T2 position
Meter Installer 1 position
IT2 position
Software Licence Fees
Software Licence Fees
Realization Factor (%)
DCF Software Licence Fees
Wide Area Network (WAN) Fees
Cellular Backhaul Rental
Realization Factor (%)
DCF Total WAN Fees
EDTI OPERATING BENEFITS
METER READING OPERATIONS
●
Meter Reading Operations
Manual Reading Net Cost - Manual
Meter Reading Gross Cost - Drive by
EWSI Payment
Realization Factor (%)
Meter Reading Operations Benefit
●
New Meter Readers (Site Growth)
New Site (Meter) Growth Rate (%)
Power Meter Inventory (Mid Year)
New Power Meters Forecast
Meter Reader Average Read Rate per Year
Meter Reader FTE Increase Due to Growth
Cumulative Meter Reader FTE Increase
New Meter Reader Salary
New Meter Reader Salary Due to Growth
Realization Factor (%)
New Meter Readers (Site Growth) Benefit
●
Meter Reading Validation - Cumulative
Meter Data Management Budget
EWSI Payment
Realization Factor (%)
Meter Reading Validation - Cumulative Benefit
●
Meter Reading Validation - Interval
Interval Meter Data Line Costs
Interval Meter Data Line Savings
Realization Factor (%)
Interval Meter Data Line Savings
Meter Technician Salary & Benefits
Meter Tech FTE Reduction
Meter Technican Savings
Meter Reading Validation - Interval Benefit
●
MVRS Support Cost Savings
MVRS Annual Support Costs
Realization Factor (%)
Total MVRS Support Cost Benefit
●
Meter Reading Transition Allowance
●
DCF Total Meter Reading Operations Benefit
February 28, 2014
2013A
Benefit 50% based on ERTs
1,802,094
369,429
1,854,355
380,143
Avg 2011 - 2013
2013A
2.10%
357,741
2012A Reads/FTE/YR
520,755
2.10%
365,254
7,513
520,755
75,032
77,208
329,221
-144,504
338,768
-148,695
0%
0
348,593
-153,007
0%
0
358,702
-157,444
25%
50,314
369,104
-162,010
38%
77,660
379,808
-166,708
50%
106,550
390,823
-171,543
50%
109,640
402,157
-176,517
50%
112,820
413,819
-181,636
50%
116,091
425,820
-186,904
50%
119,458
438,169
-192,324
50%
122,922
450,876
-197,901
50%
126,487
463,951
-203,641
50%
130,155
477,405
-209,546
50%
133,930
491,250
-215,623
50%
137,814
505,496
-221,876
50%
141,810
520,156
-228,310
50%
145,923
535,240
-234,931
50%
150,154
550,762
-241,745
50%
154,509
566,734
-248,755
50%
158,990
583,170
-255,969
50%
163,600
600,082
-263,392
50%
168,345
2013A
1,600 of 1,873 meters
748,172
769,869
T2 Position
111,287
114,514
792,195
676,728
0%
0
117,835
0
0
0
815,169
696,354
0%
0
121,252
0
0
0
838,809
716,548
0%
0
124,769
0
0
0
863,134
737,328
0%
0
128,387
0
0
0
888,165
758,710
0%
0
132,110
0
0
0
913,922
780,713
0%
0
135,942
0
0
0
940,426
803,353
0%
0
139,884
0
0
0
967,698
826,651
0%
0
143,940
0
0
0
995,761
850,624
0%
0
148,115
0
0
0
1,024,638
875,292
0%
0
152,410
0
0
0
1,054,353
900,675
0%
0
156,830
0
0
0
1,084,929
926,795
0%
0
161,378
0
0
0
1,116,392
953,672
0%
0
166,058
0
0
0
1,148,767
981,328
0%
0
170,874
0
0
0
1,182,082
1,009,787
0%
0
175,829
0
0
0
1,216,362
1,039,071
0%
0
180,928
0
0
0
1,251,636
1,069,204
0%
0
186,175
0
0
0
1,287,934
1,100,210
0%
0
191,574
0
0
0
1,325,284
1,132,117
0%
0
197,130
0
0
0
1,363,717
1,164,948
0%
0
202,846
0
0
0
18,362
18,894
19,442
0%
0
20,006
0%
0
20,586
0%
0
21,183
0%
0
21,798
0%
0
22,430
0%
0
23,080
0%
0
23,750
0%
0
24,438
0%
0
25,147
0%
0
25,876
0%
0
26,627
0%
0
27,399
0%
0
28,194
0%
0
29,011
0%
0
29,853
0%
0
30,718
0%
0
31,609
0%
0
32,526
0%
0
33,469
0%
0
-125,000
-125,000
985,460
1,588,995
2,351,602
2,419,798
2,489,972
2,562,181
2,636,485
2,712,943
2,791,618
2,872,575
2,955,880
3,041,600
3,129,807
3,220,571
3,313,967
3,410,073
3,508,965
3,610,725
3,715,436
2015 onward
2013A
2013A
2013A
2013A
0
0
Appendix A-19 Attachment 2.xls
EDTI Operating
Page 6 of 9
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
METER OPERATIONS
Compliance Sampling
Current State - Conventional Metering
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling Cost ($)
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements Cost ($)
Future State - AMI
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling Cost ($)
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements Cost ($)
20 year forecast
2011-2013 3 yr average
89.79
87.72
211.91
645.01
Sum of Quantity x Unit Rate
2011-2013 3 yr average
31.33
20.48
14.67
151.37
Sum of Quantity x Unit Rate
3,845
2,225
1,040
960
3,745
1,120
800
1,360
3,360
650
640
320
2,765
1,085
320
400
3,290
1,675
560
480
1,640
240
320
160
780
525
160
400
1,865
605
240
320
4,265
775
240
320
3,470
1,370
800
1,200
4,050
1,610
1,040
1,120
2,715
1,200
880
1,440
2,980
650
800
480
1,560
1,005
240
640
3,870
1,675
480
640
5,210
695
160
320
3,550
925
800
1,120
2,265
1,325
880
80
95.07
92.88
224.38
682.96
1,059,125
97.83
95.58
230.89
702.77
1,467,669
100.67
98.35
237.58
723.15
1,547,197
103.59
101.20
244.47
744.12
1,708,857
106.59
104.13
251.56
765.70
831,856
109.68
107.15
258.86
787.91
817,529
112.86
110.26
266.36
810.75
1,094,331
116.14
113.46
274.09
834.27
438,884
119.50
116.75
282.04
858.46
543,016
122.97
120.13
290.22
883.36
654,345
126.54
123.62
298.63
908.97
998,021
130.21
127.20
307.29
935.33
1,994,314
133.98
130.89
316.20
962.46
2,160,164
137.87
134.69
325.37
990.37
2,248,393
141.86
138.59
334.81
1,019.09
1,269,853
145.98
142.61
344.52
1,048.64
1,124,869
150.21
146.75
354.51
1,079.05
1,687,885
154.57
151.00
364.79
1,110.35
1,323,926
159.05
155.38
375.37
1,142.55
2,288,308
163.66
159.89
386.26
1,175.68
1,016,510
13,194
1,982
1,368
0
16,912
0
0
0
9,432
4,265
861
0
17,261
290
0
0
15,801
1,624
114
0
13,613
2,767
260
184
13,464
2,288
711
161
15,030
264
211
29
14,687
0
0
176
14,188
0
0
0
13,327
996
0
0
15,886
0
0
0
15,732
0
0
0
12,145
1,899
0
0
15,305
1,420
538
191
11,924
2,878
195
618
11,870
2,754
390
391
12,915
2,571
452
473
11,263
1,579
1,269
1,829
12,271
3,529
1,157
0
32.24
21.07
15.10
155.76
0
33.17
21.69
15.53
160.28
501,920
34.14
22.31
15.98
164.92
577,300
35.13
22.96
16.45
169.71
443,393
36.14
23.63
16.92
174.63
630,735
37.19
24.31
17.41
179.69
629,143
38.27
25.02
17.92
184.90
628,885
39.38
25.74
18.44
190.27
632,864
40.52
26.49
18.97
195.78
625,731
41.70
27.26
19.52
201.46
647,874
42.91
28.05
20.09
207.30
608,766
44.15
28.86
20.67
213.32
617,152
45.43
29.70
21.27
219.50
721,730
46.75
30.56
21.89
225.87
735,461
48.11
31.45
22.52
232.42
643,952
49.50
32.36
23.18
239.16
861,696
50.94
33.30
23.85
246.09
859,919
52.41
34.26
24.54
253.23
825,080
53.93
35.26
25.25
260.57
921,849
55.50
36.28
25.99
268.13
1,205,731
57.11
37.33
26.74
275.91
863,424
0
0
0
0
125
0
0
0
205
320
0
80
910
320
80
80
580
560
320
0
250
205
320
170
365
0
0
0
830
405
130
0
680
380
180
170
250
80
80
0
1,926
859
241
230
6,738
1,532
803
255
2,131
923
561
230
375
285
400
170
830
300
218
285
455
285
160
85
545
380
298
370
375
160
160
85
2,740
1,194
676
285
8,541
1,900
1,778
85
2,895
1,213
996
200
92.39
90.26
218.06
663.72
0
95.07
92.88
224.38
682.96
11,884
97.83
95.58
230.89
702.77
106,861
100.67
98.35
237.58
723.15
199,937
103.59
101.20
244.47
744.12
194,983
106.59
104.13
251.56
765.70
258,664
109.68
107.15
258.86
787.91
40,034
112.86
110.26
266.36
810.75
172,959
116.14
113.46
274.09
834.27
313,248
119.50
116.75
282.04
858.46
61,779
122.97
120.13
290.22
883.36
613,148
126.54
123.62
298.63
908.97
1,513,569
130.21
127.20
307.29
935.33
782,393
133.98
130.89
316.20
962.46
377,646
137.87
134.69
325.37
990.37
508,022
141.86
138.59
334.81
1,019.09
244,240
145.98
142.61
344.52
1,048.64
624,416
150.21
146.75
354.51
1,079.05
228,251
154.57
151.00
364.79
1,110.35
1,166,864
159.05
155.38
375.37
1,142.55
2,418,205
163.66
159.89
386.26
1,175.68
1,287,598
0
0
0
0
0
0
1,368
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,191
0
0
0
997
0
0
0
2,475
1,250
195
0
12,132
1,994
590
0
8,006
3,494
798
0
3,982
1,497
896
0
3,489
0
0
0
4,040
1,000
200
0
500
0
0
0
0
0
0
1,000
0
0
0
1,000
32.24
21.07
15.10
155.76
0
33.17
21.69
15.53
160.28
21,249
34.14
22.31
15.98
164.92
0
35.13
22.96
16.45
169.71
0
36.14
23.63
16.92
174.63
0
37.19
24.31
17.41
179.69
0
38.27
25.02
17.92
184.90
0
39.38
25.74
18.44
190.27
0
40.52
26.49
18.97
195.78
0
41.70
27.26
19.52
201.46
0
42.91
28.05
20.09
207.30
51,102
44.15
28.86
20.67
213.32
44,019
45.43
29.70
21.27
219.50
153,715
46.75
30.56
21.89
225.87
641,014
48.11
31.45
22.52
232.42
512,975
49.50
32.36
23.18
239.16
266,316
50.94
33.30
23.85
246.09
177,714
52.41
34.26
24.54
253.23
250,917
53.93
35.26
25.25
260.57
26,966
55.50
36.28
25.99
268.13
268,131
57.11
37.33
26.74
275.91
275,907
0
0
0%
0
1,047,240
480,671
100%
1,527,911
1,360,809
577,300
100%
1,938,109
1,347,260
443,393
100%
1,790,653
1,513,874
630,735
100%
2,144,609
573,192
629,143
100%
1,202,335
777,495
628,885
100%
1,406,380
921,372
632,864
100%
1,554,237
125,636
625,731
100%
751,367
481,237
647,874
100%
1,129,112
41,196
557,664
100%
598,861
-515,548
573,133
100%
57,585
1,211,920
568,015
100%
1,779,936
1,782,518
94,447
100%
1,876,965
1,740,371
130,976
100%
1,871,347
1,025,613
595,380
100%
1,620,993
500,453
682,205
100%
1,182,658
1,459,634
574,163
100%
2,033,797
157,062
894,882
100%
1,051,944
-129,897
937,599
100%
807,703
-271,087
587,517
100%
316,429
1,518,605
1,562,645
1,484,513
0%
0
1,607,962
1,527,564
0%
0
1,654,593
1,571,863
0%
0
1,702,576
1,617,447
0%
0
1,751,950
1,664,353
0%
0
1,802,757
1,712,619
0%
0
1,855,037
1,762,285
0%
0
1,908,833
1,813,391
0%
0
1,964,189
1,865,980
0%
0
2,021,151
1,920,093
0%
0
2,079,764
1,975,776
0%
0
2,140,077
2,033,073
0%
0
2,202,139
2,092,032
0%
0
2,266,001
2,152,701
0%
0
2,331,716
2,215,130
0%
0
2,399,335
2,279,368
0%
0
2,468,916
2,345,470
0%
0
2,540,515
2,413,489
0%
0
2,614,189
2,483,480
0%
0
2,690,001
2,555,501
0%
0
2,768,011
2,629,610
0%
0
129,508
133,264
0%
0
137,128
117,141
0%
0
141,105
120,538
0%
0
145,197
124,034
0%
0
149,408
127,631
0%
0
153,741
131,332
0%
0
158,199
135,141
0%
0
162,787
139,060
0%
0
167,508
143,092
0%
0
172,365
147,242
0%
0
177,364
151,512
0%
0
182,507
155,906
0%
0
187,800
160,427
0%
0
193,246
165,080
0%
0
198,851
169,867
0%
0
204,617
174,793
0%
0
210,551
179,862
0%
0
216,657
185,078
0%
0
222,940
190,445
0%
0
229,405
195,968
0%
0
236,058
201,651
0%
0
0
1,527,911
1,938,109
1,790,653
2,144,609
1,202,335
1,406,380
1,554,237
751,367
1,129,112
598,861
57,585
1,779,936
1,876,965
1,871,347
1,620,993
1,182,658
2,033,797
1,051,944
807,703
316,429
89.79
87.72
211.91
645.01
31.33
20.48
14.67
151.37
20 year forecast
Sum of Quantity x Unit Rate
89.79
87.72
211.91
645.01
20 year forecast
Sum of Quantity x Unit Rate
Current State - Future State
Current State - Future State
●
2013A
●
Energize & De-Energize
Energize & De-Energize Cost
Energize & De-Energize Cost (200-A)
Realization Factor (%)
Energize & De-Energize Benefit
2013A
$107,673
$18,185
$125,858
1,600 of 1,873 meters
●
Interval Meter Troubleshooting
Labour Cost
Vehicles Costs Incurred
Total Labour & Vehicles Cost
Replaced Interval Meters
Realization Factor (%)
Interval MeterTroubleshooting Benefit
February 28, 2014
4,510
765
720
1,120
92.39
90.26
218.06
663.72
0
20 year forecast
Compliance Sampling Savings ($)
Gov Meter Replacement Savings ($)
Realization Factor (%)
Total Compliance Sampling Benefit
DCF Total Meter Operations Benefit
5,675
1,300
560
400
1,475,807
95%
31.33
20.48
14.67
151.37
Appendix A-19 Attachment 2.xls
EDTI Operating
3090
1405
880
1280
7552
3567
1765
1266
Page 7 of 9
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● AMR Alternative - Cash Flow Table
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Description
AMI - Capital
Capital Costs
Initial Project - System Costs
Initial Project - Meter Costs
Initial Project - Other Costs
Capital Overhead
Capital Costs
Capital Benefits
Capital Benefits
Capital Overhead
Capital Benefits
NET AMI CAPITAL COSTS
AMI - Operating
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
EDTI Operating Benefits
NET AMI OPERATING
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
February 28, 2014
A
Calculation
B
2014
C
2015
D
2016
E
2017
(R1 : R3) x 6.0%
R1 + R2 + R3 + R4
(1.00)
(1.05)
(1.93)
(0.24)
(4.21)
(18.22)
(0.37)
(1.12)
(19.70)
(9.11)
(0.30)
(0.56)
(9.98)
R6 x 6.0%
R6 + R7
R5 + R8
2.25
0.14
2.39
(1.83)
2.15
0.13
2.28
(17.42)
(0.05)
R11 + R12
R10 + R13
R9 + R14
2013 F WACC
6.99%
$30.01
F
2018
G
2019
H
2020
I
2021
J
2022
K
2023
L
2024
M
2025
N
2026
O
2027
P
2028
Q
2029
R
2030
S
2031
T
2032
U
2033
V
2034
2.21
0.13
2.35
(7.63)
2.10
0.13
2.22
2.22
1.73
0.10
1.83
1.83
1.82
0.11
1.93
1.93
1.91
0.11
2.03
2.03
1.35
0.08
1.44
1.44
1.87
0.11
1.98
1.98
1.12
0.07
1.19
1.19
1.20
0.07
1.28
1.28
1.16
0.07
1.23
1.23
0.24
0.01
0.25
0.25
0.31
0.02
0.33
0.33
1.08
0.06
1.14
1.14
1.62
0.10
1.72
1.72
2.00
0.12
2.13
2.13
1.83
0.11
1.94
1.94
2.21
0.13
2.35
2.35
1.13
0.07
1.20
1.20
(0.10)
(0.11)
(0.11)
(0.11)
(0.12)
(0.12)
(0.12)
(0.13)
(0.13)
(0.13)
(0.14)
(0.14)
(0.15)
(0.15)
(0.15)
(0.16)
(0.16)
(0.17)
(0.17)
1.53
1.53
1.48
0.99
1.94
2.92
2.82
1.59
1.79
3.38
3.27
2.35
2.14
4.50
4.39
2.42
1.20
3.62
3.51
2.49
1.41
3.90
3.78
2.56
1.55
4.12
4.00
2.64
0.75
3.39
3.27
2.71
1.13
3.84
3.72
2.79
0.60
3.39
3.26
2.87
0.06
2.93
2.80
2.96
1.78
4.74
4.60
3.04
1.88
4.92
4.78
3.13
1.87
5.00
4.86
3.22
1.62
4.84
4.69
3.31
1.18
4.50
4.34
3.41
2.03
5.44
5.29
3.51
1.05
4.56
4.40
3.61
0.81
4.42
4.25
3.72
0.32
4.03
3.86
(0.35)
(14.60)
(4.36)
6.61
5.34
5.71
6.03
4.70
5.70
4.45
4.07
5.83
5.03
5.18
5.83
6.07
7.41
6.33
6.60
5.06
Appendix A-19 Attachment 2.xls
Cash Flow Table
Page 8 of 9
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● AMR Alternative - Revenue Requirement Table
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
A
B
C
Description
Calculation
2014
2015
2016
Capital Revenue Requirement - Meters
Return
0.04
0.72
Depreciation (6.7%)
0.04
0.72
Total Capital Revenue Requirement
R1 + R2
0.07
1.44
Capital Revenue Requirement - Data Collector Costs
Return
0.02
0.03
Depreciation (6.7%)
0.02
0.04
Total Capital Revenue Requirement
R4 + R5
0.04
0.07
Capital Revenue Requirement - Project Integration (EDTI Costs)
Return
0.06
0.12
Depreciation (10.0%)
0.09
0.19
Total Capital Revenue Requirement
R7 + R8
0.15
0.31
Capital Revenue Requirement - Project Integration (Customer Awareness Program)
Return
0.01
0.02
Depreciation (6.7%)
0.01
0.02
Total Capital Revenue Requirement
R10 + R11
0.02
0.05
Capital Revenue Requirement - Capital Benefits
Return
(0.08) (0.23)
Depreciation (6.7%)
(0.08) (0.24)
Total Capital Revenue Requirement
R13 + R14
(0.16) (0.47)
AMI - Incremental Operating Cost / Benefit
EDTI Operating Costs
(0.05) (0.10)
EDTI Operating Benefits
1.53
2.92
Total: Incremental Cost / Benefit
R16 + R17
1.48
2.82
AMI - Incremental Revenue Requirement (RR) Impact
R3 + R6 + R9 + R12 +
Net Impact on RR
(1.28) (1.26)
R15 + R18
Discount Rate
2013 F WACC
6.99%
Net Present Value
(26.88)
D
2017
E
2018
F
2019
G
2020
H
2021
I
2022
J
2023
K
2024
L
2025
M
2026
N
2027
O
2028
P
2029
Q
2030
R
2031
S
2032
T
2033
U
2034
1.65
1.68
3.34
1.86
2.00
3.87
1.72
2.00
3.73
1.58
2.00
3.59
1.44
2.00
3.45
1.30
2.00
3.31
1.16
2.00
3.17
1.02
2.00
3.03
0.88
2.00
2.89
0.74
2.00
2.75
0.60
2.00
2.61
0.46
2.00
2.47
0.32
2.00
2.33
0.18
1.97
2.15
0.07
1.29
1.35
0.01
0.32
0.33
0.03
0.04
0.07
0.03
0.04
0.06
0.03
0.04
0.06
0.02
0.04
0.06
0.02
0.04
0.06
0.02
0.04
0.06
0.02
0.04
0.05
0.01
0.04
0.05
0.01
0.04
0.05
0.01
0.04
0.05
0.01
0.04
0.04
0.00
0.04
0.04
0.00
0.04
0.04
0.00
0.02
0.02
0.11
0.20
0.32
0.10
0.21
0.31
0.09
0.21
0.29
0.07
0.21
0.28
0.06
0.21
0.26
0.05
0.21
0.25
0.03
0.21
0.24
0.02
0.21
0.22
0.01
0.11
0.12
0.00
0.02
0.02
0.00
0.00
0.00
0.04
0.04
0.08
0.04
0.05
0.09
0.04
0.05
0.09
0.04
0.05
0.08
0.03
0.05
0.08
0.03
0.05
0.08
0.03
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.05
0.00
0.04
0.04
0.00
0.02
0.03
0.00
0.01
0.01
(0.37)
(0.39)
(0.76)
(0.50)
(0.54)
(1.04)
(0.60)
(0.68)
(1.28)
(0.68)
(0.80)
(1.48)
(0.76)
(0.93)
(1.69)
(0.81)
(1.05)
(1.86)
(0.85)
(1.16)
(2.01)
(0.88)
(1.27)
(2.14)
(0.87)
(1.35)
(2.22)
(0.86)
(1.43)
(2.29)
(0.81)
(1.48)
(2.29)
(0.73)
(1.50)
(2.23)
(0.67)
(1.55)
(2.22)
(0.66)
(1.57)
(2.23)
(0.69)
(1.54)
(2.23)
(0.72)
(1.52)
(2.24)
(0.77)
(1.51)
(2.28)
(0.78)
(1.50)
(2.28)
(0.11)
3.38
3.27
(0.11)
4.50
4.39
(0.11)
3.62
3.51
(0.12)
3.90
3.78
(0.12)
4.12
4.00
(0.12)
3.39
3.27
(0.13)
3.84
3.72
(0.13)
3.39
3.26
(0.13)
2.93
2.80
(0.14)
4.74
4.60
(0.14)
4.92
4.78
(0.15)
5.00
4.86
(0.15)
4.84
4.69
(0.15)
4.50
4.34
(0.16)
5.44
5.29
(0.16)
4.56
4.40
(0.17)
4.42
4.25
(0.17)
4.03
3.86
(0.09)
(0.96)
(0.55)
(1.25)
(1.84)
(1.43)
(2.20)
(2.04)
(1.90)
(4.02)
(4.36)
(4.52)
(4.50)
(4.36)
(6.13)
(6.30)
(6.53)
(6.14)
● AMR Alternative - Revenue Requirement Chart
$ Millions
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
($2.5)
2015
$0.0
2014
$2.5
2016
Incremental Impact to Revenue Requirement (RR)
(AMI Net Capital RR & Incremental AMI Operating Cost / Benefits)
($5.0)
($7.5)
($10.0)
($12.5)
($15.0)
February 28, 2014
Year
Appendix A-19 Attachment 2.xls
Rev Requirement Table
Page 9 of 9
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 3 (Implement AMI)
Worksheet: Cash Flow
● Positive Value = Benefit
● Negative Value = Cost
DCF NPV Summary
DCF Net Present Value ($)
Discount Rate (WACC) (%)
36,107,099
6.99%
Revenue Requirement NPV Summary
RR Net Present Value ($)
-33,668,411
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Capital Costs
Initial Project - System Costs
Fixed Network - Initial Capital Cost
Fixed Network - Installation Capital Cost
Hardware - NCC
Software - NCC
0
0
0
0
-1,215,520
-286,760
-450,000
-1,631,024
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Project - Meter Costs
AMI Meters
AMI Meters - Installation
0
0
-1,183,200
-305,700
-28,627,524
-7,396,412
-14,313,640
-3,698,174
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Project - Other Costs
Project Integration
-717,839
-4,013,715
-2,079,902
-1,714,317
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-209,937
-32,463
-428,691
-34,106
-437,693
-35,832
-446,885
-37,645
-456,270
-39,550
-465,851
-41,552
-475,634
-43,655
-485,622
-45,864
-495,821
-48,185
-506,233
-50,624
-516,864
-53,186
-527,718
-55,878
-538,800
-58,706
-550,115
-61,677
-561,667
-64,798
-573,462
-68,077
-585,505
-71,523
-597,800
-75,142
-610,354
-78,945
-623,172
100%
-717,839
-9,295,856
-38,564,991
-20,197,930
-482,717
-493,915
-505,402
-517,186
-529,277
-541,685
-554,418
-567,488
-580,904
-594,677
-608,820
-623,344
-638,260
-653,582
-669,323
-685,496
-702,117
6.00%
-43,070
-557,751
-2,313,899
-1,211,876
-28,963
-29,635
-30,324
-31,031
-31,757
-32,501
-33,265
-34,049
-34,854
-35,681
-36,529
-37,401
-38,296
-39,215
-40,159
-41,130
-42,127
-760,909
-9,853,607
-40,878,891
-21,409,806
-511,680
-523,550
-535,726
-548,217
-561,034
-574,186
-587,683
-601,537
-615,758
-630,358
-645,349
-660,744
-676,556
-692,797
-709,482
-726,626
-744,244
0
0
321,586
1,856,491
0
2,149,984
0
2,213,605
0
2,096,373
0
1,726,210
0
1,816,677
0
1,912,549
0
1,354,303
638,048
1,359,875
0
1,210,749
0
1,280,282
0
1,554,916
0
1,553,102
0
1,548,916
0
1,781,942
0
1,890,576
823,115
1,824,025
0
1,864,001
0
1,587,754
0
299,986
100%
0
2,178,077
2,149,984
2,213,605
2,096,373
1,726,210
1,816,677
1,912,549
1,354,303
1,997,923
1,210,749
1,280,282
1,554,916
1,553,102
1,548,916
1,781,942
1,890,576
2,647,139
1,864,001
1,587,754
299,986
6.00%
0
130,685
128,999
132,816
125,782
103,573
109,001
114,753
81,258
119,875
72,645
76,817
93,295
93,186
92,935
106,917
113,435
158,828
111,840
95,265
17,999
0
2,308,762
2,278,983
2,346,421
2,222,155
1,829,782
1,925,678
2,027,302
1,435,561
2,117,798
1,283,394
1,357,099
1,648,211
1,646,288
1,641,851
1,888,859
2,004,011
2,805,968
1,975,841
1,683,019
317,985
-760,909
-7,544,845
-38,599,908
-19,063,385
1,710,476
1,306,233
1,389,952
1,479,085
874,527
1,543,613
695,711
755,563
1,032,454
1,015,930
996,502
1,228,115
1,327,455
2,113,171
1,266,359
956,393
-426,258
100%
0
0
0
0
-150,662
-163,102
-18,000
-331,765
-572,803
-326,205
-37,044
-936,052
-968,167
-326,205
-38,118
-1,332,491
-718,044
-326,205
-39,224
-1,083,473
-738,868
-326,205
-40,361
-1,105,434
-760,295
-326,205
-41,532
-1,128,031
-782,343
-326,205
-42,736
-1,151,284
-805,031
-326,205
-43,975
-1,175,212
-828,377
-326,205
-45,251
-1,199,833
-852,400
-326,205
-46,563
-1,225,168
-877,120
-326,205
-47,913
-1,251,238
-902,556
-326,205
-49,303
-1,278,064
-928,731
-326,205
-50,733
-1,305,668
-955,664
-326,205
-52,204
-1,334,072
-983,378
-326,205
-53,718
-1,363,300
-1,011,896
-326,205
-55,276
-1,393,376
-1,041,241
-326,205
-56,879
-1,424,324
-1,071,437
-326,205
-58,528
-1,456,170
-1,102,509
-326,205
-60,225
-1,488,939
-1,134,481
-326,205
-61,972
-1,522,658
100%
0
0
0
0
131,878
1,539,795
0
1,671,673
1,520,365
2,551,671
34,811
4,106,847
4,074,465
3,380,978
116,745
7,572,188
5,317,782
4,127,978
166,543
9,612,303
5,489,106
3,301,249
171,373
8,961,727
5,666,264
3,340,031
176,342
9,182,637
5,849,469
3,583,926
181,456
9,614,852
6,038,943
2,938,526
186,719
9,164,188
6,234,916
3,254,076
192,133
9,681,125
6,437,627
3,035,002
197,705
9,670,334
6,647,325
2,668,908
203,439
9,519,671
6,864,268
4,636,717
209,338
11,710,323
7,088,726
5,208,754
215,409
12,512,888
7,320,978
4,953,073
221,656
12,495,707
7,561,316
4,580,785
228,084
12,370,185
7,810,042
4,166,772
234,699
12,211,513
8,067,472
5,106,316
241,505
13,415,292
8,333,932
4,043,026
248,509
12,625,467
8,609,765
3,739,855
255,715
12,605,336
8,895,326
3,316,245
263,131
12,474,702
0
1,339,908
3,170,795
6,239,697
8,528,830
7,856,293
8,054,606
8,463,567
7,988,977
8,481,293
8,445,166
8,268,433
10,432,259
11,207,221
11,161,635
11,006,884
10,818,136
11,990,968
11,169,297
11,116,397
10,952,044
-760,909
-6,204,937
-35,429,114
-12,823,687
10,239,306
9,162,526
9,444,558
9,942,652
8,863,504
10,024,905
9,140,877
9,023,995
11,464,713
12,223,151
12,158,136
12,234,999
12,145,591
14,104,139
12,435,656
12,072,791
10,525,786
-44,979,342
-35,816,815
-26,372,257
-16,429,605
-7,566,101
2,458,804
#REF!
11,599,681
20,623,676
32,088,389
44,311,540
56,469,677
68,704,676
80,850,267
94,954,406
107,390,061
119,462,852
129,988,638
Ongoing Costs
Fixed Network - Ongoing Capital Cost
AMI Premium on Meter Growth
Capital Costs Before Capital Overhead
Capital Overhead
Capital Costs with Capital Overhead
Benefits
Replace FC200 Handheld Devices
Capital Meter Replacements
Capital Benefits before Capital Overhead
Capital Overhead
Capital Benefits with Capital Overhead
NET AMI CAPITAL COSTS
AMI OPERATING
EDTI Operating Costs
Load Center/MDM Operations
Annual Software Licence Fees
WAN Fees
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
Distribution Operations
EDTI Operating Benefits
NET AMI OPERATING
NET ANNUAL CASH FLOW
Net Present Value
IRR
February 27, 2014
36,107,099 --> 2014 + NPV(WACC, 2015 to end)
14.7%
Cumulative Net Annual Cash Flow
Simple Payback on Net Annual Cash Flow
-760,909
Benefits Breakdown
EDTI Labour Benefits
Capital Benefits
Total
2014-2034
201,178,960
34,665,066
235,844,026
-6,965,847
-42,394,960
-55,218,648
%
85%
15%
100%
Appendix A-19 Attachment 3.xls
Cash Flow
Page 1 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Sensitivity Analysis
Capital - Includes Corporate OH
Operating
Rates
Cap. Cost ∆
110%
105%
100%
95%
90%
36,107,099
29,314,001
32,710,550
36,107,099
39,503,648
42,900,196
Delta
-6,793,098
-3,396,549
0
3,396,549
6,793,098
Op. Cost ∆
110%
105%
100%
95%
90%
36,107,099
34,892,812
35,499,955
36,107,099
36,714,242
37,321,385
Delta
-1,214,287
-607,143
0
607,143
1,214,287
Cap. Benefit ∆
90%
95%
100%
105%
110%
36,107,099
34,072,700
35,089,899
36,107,099
37,124,298
38,141,497
Delta
-2,034,399
-1,017,199
0
1,017,199
2,034,399
Op. Benefit ∆
90%
95%
100%
105%
110%
36,107,099
26,523,403
31,315,251
36,107,099
40,898,946
45,690,794
Delta
-9,583,695
-4,791,848
0
4,791,848
9,583,695
Base Case Capital Escalation
Escalation ∆
2.10%
2.50%
2.90%
3.30%
3.70%
36,107,099
36,077,176
36,091,677
36,107,099
36,123,496
36,140,927
Base Case Ops. Escalation
2.90%
Delta
-29,923
-15,422
Escalation ∆
2.10%
2.50%
2.90%
3.30%
3.70%
16,398
33,828
36,107,099
28,856,243
32,391,979
36,107,099
40,011,422
44,115,319
Capital OH ∆
6%
8%
10%
36,107,099
36,107,099
35,209,231
34,311,363
Delta
WACC ∆
6.99%
7.00%
7.20%
7.40%
36,107,099
36,107,099
36,030,854
34,528,678
33,068,846
0
-76,244
-1,578,421
-3,038,253
8,863,504
-916,419
-28,316
7,918,769
10,024,905
-968,113
-28,980
9,027,813
9,140,877
-967,033
-29,661
8,144,182
0
-897,868
-1,795,735
Delta
2.90%
Delta
-7,250,855
-3,715,120
0
3,904,323
8,008,221
Escalation has minimal impact on capital sensitivity table
as values in capital worksheet hardcoded
Combined Sensitivities
Net Present Value
36,107,099
90%
95%
100%
105%
110% ◄ Operating Benefits
110%
19,730,306
24,522,153
29,314,001
34,105,849
38,897,696
105%
23,126,854
27,918,702
32,710,550
37,502,398
42,294,245
100%
26,523,403
31,315,251
36,107,099
40,898,946
45,690,794
95%
29,919,952
34,711,800
39,503,648
44,295,495
49,087,343
90%
33,316,501
38,108,349
42,900,196
47,692,044
52,483,892
▲
Capital Cost
▼
NPV Delta Relative to Base Case (negative means lower project economics)
90%
95%
100%
105%
110% ◄ Operating Benefits
110%
-16,376,793
-11,584,945
-6,793,098
-2,001,250
2,790,598
105%
-12,980,244
-8,188,397
-3,396,549
1,395,299
6,187,147
100%
-9,583,695
-4,791,848
0
4,791,848
9,583,695
95%
-6,187,147
-1,395,299
3,396,549
8,188,397
12,980,244
90%
-2,790,598
2,001,250
6,793,098
11,584,945
16,376,793
Interpetation:
Base Case
10% Op. B. Adj.
5% Cap. C. Adj.
Revised
-760,909
0
-38,404
-799,314
▪ If capital cost were 110% (or 10% higher);
▪ and operating benefits were 90% (or 10% lower);
▪ then project economics (relative to the base case) would decrease (-$16.4 M)
-6,204,937
-167,167
-497,328
-6,869,433
-35,429,114
-410,685
-2,063,227
-37,903,025
-12,823,687
-757,219
-1,080,589
-14,661,495
10,239,306
-961,230
-25,825
9,252,250
9,162,526
-896,173
-26,424
8,239,929
9,444,558
-918,264
-27,039
8,499,255
9,942,652
-961,485
-27,669
8,953,497
9,023,995
-951,967
-30,361
8,041,668
11,464,713
-1,171,032
-31,078
10,262,602
12,223,151
-1,251,289
-31,815
10,940,047
12,158,136
-1,249,571
-32,572
10,875,994
12,234,999
-1,237,018
-33,349
10,964,632
12,145,591
-1,221,151
-34,147
10,890,293
14,104,139
-1,341,529
-34,967
12,727,643
12,435,656
-1,262,547
-35,809
11,137,300
12,072,791
-1,260,534
-36,674
10,775,583
10,525,786
-1,247,470
-37,563
9,240,752
23,094,811 <-- Matches value calculated in the NPV table
February 27, 2014
Appendix A-19 Attachment 3.xls
Cash Flow
Page 2 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 3 (Implement AMI)
Worksheet: Revenue Requirement
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Note: Retirement Logic not automatic - if depreciation rate changes, manually adjust retirements
1
Initial Project AMI Meters + AMI Meters Installation
Capital Asset
Opening Balance
sum
Capital Additions (incl. OH) (Initial Project AMI Meters + Installation)
Retirements (Initial Project AMI Meters + Installation)
sum
Capital Additions (incl. OH) (Ongoing Cost AMI Premium on Growth Meters)
Retirements (Ongoing Cost AMI Premium on Growth Meters)
Closing Balance
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
15
15
6.67%
Capital Revenue Requirement
8,000,000
6,000,000
4,000,000
2,000,000
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21
Capital Revenue Requirement
Return
Depreciation
Total
6.99%
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
15
15
6.67%
Capital Revenue Requirement
40,440,551
19,092,523
0
463,955
0
59,997,029
50,218,790
59,997,029
0
0
473,698
0
60,470,728
60,233,879
60,470,728
0
0
483,646
0
60,954,373
60,712,550
60,954,373
0
0
493,802
0
61,448,176
61,201,274
61,448,176
0
0
504,172
0
61,952,348
61,700,262
61,952,348
0
0
514,760
0
62,467,108
62,209,728
62,467,108
0
0
525,570
0
62,992,677
62,729,892
62,992,677
0
0
536,607
0
63,529,284
63,260,981
63,529,284
0
0
547,875
0
64,077,159
63,803,222
64,077,159
0
0
559,381
0
64,636,540
64,356,850
64,636,540
0
0
571,128
0
65,207,668
64,922,104
65,207,668
0
0
583,122
0
65,790,790
65,499,229
65,790,790
0
0
595,367
0
66,386,157
66,088,473
66,386,157
0
-1,578,234
607,870
-222,533
65,193,259
65,789,708
65,193,259
0
-38,185,372
620,635
-454,412
27,174,110
46,183,685
27,174,110
0
-19,092,523
633,668
-463,955
8,251,300
17,712,705
8,251,300
0
0
646,975
-473,698
8,424,578
8,337,939
8,424,578
0
0
660,562
-483,646
8,601,494
8,513,036
0
0
0
0
0
0
-60,026
0
-60,026
-30,013
-60,026
-1,408,044
0
-1,468,069
-764,048
-1,468,069
-3,347,919
0
-4,815,989
-3,142,029
-4,815,989
-4,015,592
0
-8,831,581
-6,823,785
-8,831,581
-4,047,503
0
-12,879,084
-10,855,332
-12,879,084
-4,080,085
0
-16,959,169
-14,919,127
-16,959,169
-4,113,351
0
-21,072,520
-19,015,844
-21,072,520
-4,147,315
0
-25,219,835
-23,146,177
-25,219,835
-4,181,993
0
-29,401,828
-27,310,831
-29,401,828
-4,217,399
0
-33,619,227
-31,510,527
-33,619,227
-4,253,548
0
-37,872,775
-35,746,001
-37,872,775
-4,290,457
0
-42,163,231
-40,018,003
-42,163,231
-4,328,140
0
-46,491,372
-44,327,302
-46,491,372
-4,366,615
0
-50,857,987
-48,674,679
-50,857,987
-4,405,898
0
-55,263,885
-53,060,936
-55,263,885
-4,385,981
1,800,767
-57,849,099
-56,556,492
-57,849,099
-3,078,912
38,639,784
-22,288,227
-40,068,663
-22,288,227
-1,180,847
19,556,478
-3,912,596
-13,100,411
-3,912,596
-555,863
473,698
-3,994,760
-3,953,678
-3,994,760
-567,536
483,646
-4,078,650
-4,036,705
0
0
0
0
1,740,741
870,371
1,740,741
38,972,482
20,356,611
38,972,482
55,181,041
47,076,761
55,181,041
51,639,147
53,410,094
51,639,147
48,075,289
49,857,218
48,075,289
44,489,007
46,282,148
44,489,007
40,879,828
42,684,417
40,879,828
37,247,273
39,063,550
37,247,273
33,590,849
35,419,061
33,590,849
29,910,057
31,750,453
29,910,057
26,204,385
28,057,221
26,204,385
22,473,309
24,338,847
22,473,309
18,716,296
20,594,803
18,716,296
14,932,803
16,824,550
14,932,803
11,122,272
13,027,537
11,122,272
7,344,161
9,233,216
7,344,161
4,885,883
6,115,022
4,885,883
4,338,705
4,612,294
4,338,705
4,429,818
4,384,261
4,429,818
4,522,844
4,476,331
0
0
0
60,839
60,026
120,864
1,422,927
1,408,044
2,830,971
3,290,666
3,347,919
6,638,585
3,733,366
4,015,592
7,748,957
3,485,020
4,047,503
7,532,523
3,235,122
4,080,085
7,315,207
2,983,641
4,113,351
7,096,992
2,730,542
4,147,315
6,877,857
2,475,792
4,181,993
6,657,785
2,219,357
4,217,399
6,436,755
1,961,200
4,253,548
6,214,748
1,701,285
4,290,457
5,991,742
1,439,577
4,328,140
5,767,717
1,176,036
4,366,615
5,542,651
910,625
4,405,898
5,316,523
645,402
4,385,981
5,031,382
427,440
3,078,912
3,506,352
322,399
1,180,847
1,503,246
306,460
555,863
862,322
312,896
567,536
880,431
0
0
0
0
0
0
0
0
1,592,417
0
0
0
1,592,417
796,208
1,592,417
0
0
34,411
0
1,626,827
1,609,622
1,626,827
0
0
36,152
0
1,662,979
1,644,903
1,662,979
0
0
37,982
0
1,700,961
1,681,970
1,700,961
0
0
39,904
0
1,740,865
1,720,913
1,740,865
0
0
41,923
0
1,782,788
1,761,827
1,782,788
0
0
44,045
0
1,826,833
1,804,811
1,826,833
0
0
46,274
0
1,873,107
1,849,970
1,873,107
0
0
48,616
0
1,921,723
1,897,415
1,921,723
0
0
51,076
0
1,972,800
1,947,262
1,972,800
0
0
53,661
0
2,026,461
1,999,630
2,026,461
0
0
56,377
0
2,082,838
2,054,650
2,082,838
0
0
59,230
0
2,142,068
2,112,453
2,142,068
0
0
62,228
0
2,204,296
2,173,182
2,204,296
0
0
65,377
0
2,269,673
2,236,985
2,269,673
0
-1,592,417
68,686
0
745,942
1,507,808
745,942
0
0
72,162
-34,411
783,694
764,818
783,694
0
0
75,814
-36,152
823,356
803,525
823,356
0
0
79,651
-37,982
865,025
844,190
865,025
0
0
83,682
-39,904
908,803
886,914
0
0
0
0
0
0
-53,081
0
-53,081
-26,540
-53,081
-107,308
0
-160,389
-106,735
-160,389
-109,660
0
-270,049
-215,219
-270,049
-112,131
0
-382,180
-326,115
-382,180
-114,728
0
-496,908
-439,544
-496,908
-117,455
0
-614,363
-555,635
-614,363
-120,321
0
-734,684
-674,523
-734,684
-123,331
0
-858,015
-796,349
-858,015
-126,494
0
-984,509
-921,262
-984,509
-129,817
0
-1,114,327
-1,049,418
-1,114,327
-133,309
0
-1,247,635
-1,180,981
-1,247,635
-136,977
0
-1,384,612
-1,316,124
-1,384,612
-140,830
0
-1,525,442
-1,455,027
-1,525,442
-144,879
0
-1,670,321
-1,597,882
-1,670,321
-149,132
0
-1,819,453
-1,744,887
-1,819,453
-100,521
1,592,417
-327,557
-1,073,505
-327,557
-50,988
34,411
-344,135
-335,846
-344,135
-53,568
36,152
-361,551
-352,843
-361,551
-56,279
37,982
-379,849
-370,700
-379,849
-59,128
39,904
-399,072
-389,460
0
0
0
0
1,539,336
769,668
1,539,336
1,466,439
1,502,887
1,466,439
1,392,930
1,429,685
1,392,930
1,318,781
1,355,856
1,318,781
1,243,957
1,281,369
1,243,957
1,168,425
1,206,191
1,168,425
1,092,150
1,130,287
1,092,150
1,015,092
1,053,621
1,015,092
937,214
976,153
937,214
858,473
897,844
858,473
778,826
818,649
778,826
698,226
738,526
698,226
616,626
657,426
616,626
533,975
575,301
533,975
450,220
492,098
450,220
418,385
434,303
418,385
439,559
428,972
439,559
461,805
450,682
461,805
485,176
473,491
485,176
509,731
497,454
0
0
0
53,800
53,081
106,880
105,052
107,308
212,360
99,935
109,660
209,595
94,774
112,131
206,906
89,568
114,728
204,295
84,313
117,455
201,768
79,007
120,321
199,328
73,648
123,331
196,979
68,233
126,494
194,727
62,759
129,817
192,577
57,224
133,309
190,532
51,623
136,977
188,600
45,954
140,830
186,784
40,214
144,879
185,092
34,398
149,132
183,530
30,358
100,521
130,878
29,985
50,988
80,973
31,503
53,568
85,071
33,097
56,279
89,376
34,772
59,128
93,900
0
0
0
0
0
0
477,000
0
477,000
238,500
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
-477,000
0
238,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-23,850
0
-23,850
-11,925
-23,850
-47,700
0
-71,550
-47,700
-71,550
-47,700
0
-119,250
-95,400
-119,250
-47,700
0
-166,950
-143,100
-166,950
-47,700
0
-214,650
-190,800
-214,650
-47,700
0
-262,350
-238,500
-262,350
-47,700
0
-310,050
-286,200
-310,050
-47,700
0
-357,750
-333,900
-357,750
-47,700
0
-405,450
-381,600
-405,450
-47,700
0
-453,150
-429,300
-453,150
-23,850
477,000
0
-226,575
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
453,150
226,575
453,150
405,450
429,300
405,450
357,750
381,600
357,750
310,050
333,900
310,050
262,350
286,200
262,350
214,650
238,500
214,650
166,950
190,800
166,950
119,250
143,100
119,250
71,550
95,400
71,550
23,850
47,700
23,850
0
11,925
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15,838
23,850
39,688
30,008
47,700
77,708
26,674
47,700
74,374
23,340
47,700
71,040
20,005
47,700
67,705
16,671
47,700
64,371
13,337
47,700
61,037
10,003
47,700
57,703
6,668
47,700
54,368
3,334
47,700
51,034
834
23,850
24,684
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,728,885
0
1,728,885
864,443
1,728,885
0
0
1,728,885
1,728,885
1,728,885
0
0
1,728,885
1,728,885
1,728,885
0
0
1,728,885
1,728,885
1,728,885
0
-1,728,885
0
864,443
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-216,111
0
-216,111
-108,055
-216,111
-432,221
0
-648,332
-432,221
-648,332
-432,221
0
-1,080,553
-864,443
-1,080,553
-432,221
0
-1,512,775
-1,296,664
-1,512,775
-216,111
1,728,885
0
-756,387
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,512,775
756,387
1,512,775
1,080,553
1,296,664
1,080,553
648,332
864,443
648,332
216,111
432,221
216,111
0
108,055
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
52,871
216,111
268,982
90,637
432,221
522,858
60,425
432,221
492,646
30,212
432,221
462,434
7,553
216,111
223,664
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
250,000
200,000
150,000
100,000
50,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Capital Revenue Requirement
Return
Depreciation
Total
20
21
6.99%
NCC System (Software)
Capital Asset
Opening Balance
sum
Capital Additions (incl. OH) (Software NCC )
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
10
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
10.00%
Capital Revenue Requirement
100,000
80,000
60,000
40,000
20,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Capital Revenue Requirement
Return
Depreciation
Total
4
1,800,767
38,185,372
0
454,412
0
40,440,551
21,120,659
Fixed Network (Initial Capital + Installation) + Fixed Network (Ongoing Cost)
Capital Asset
Opening Balance
sum
Capital Additions (incl. OH) (Fixed Network Initial Capital + Installation)
Retirements (Fixed Network Initial Capital + Installation)
sum
Capital Additions (incl. OH) (Ongoing Cost Fixed Network)
Retirements (Ongoing Cost Fixed Network)
Closing Balance - Asset
Mid-Year Asset Balance
3
0
1,578,234
0
222,533
0
1,800,767
900,383
10,000,000
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
2
0
0
0
0
0
0
0
19
20
21
6.99%
NCC System (Hardware)
Capital Asset
Opening Balance
sum
Capital Additions (incl. OH) (Hardware NCC)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
4
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
February 27, 2014
25.00%
Capital Revenue Requirement
600,000
500,000
400,000
300,000
200,000
100,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.99%
Appendix A-19 Attachment 3.xls
Rev Req
Page 3 of 17
EPCOR Distribution & Transmission Inc.
5
2014-2015 PBR Capital Tracker
Project Integration (EDTI Costs)
Capital Asset
Opening Balance
sum Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
0
3,177,833
0
3,177,833
1,588,917
3,177,833
1,015,811
0
4,193,644
3,685,739
4,193,644
621,467
0
4,815,111
4,504,378
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
-3,177,833
1,637,278
3,226,195
1,637,278
0
-1,015,811
621,467
1,129,373
621,467
0
-621,467
0
310,734
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-158,892
0
-158,892
-79,446
-158,892
-368,574
0
-527,466
-343,179
-527,466
-450,438
0
-977,903
-752,684
-977,903
-481,511
0
-1,459,414
-1,218,659
-1,459,414
-481,511
0
-1,940,926
-1,700,170
-1,940,926
-481,511
0
-2,422,437
-2,181,681
-2,422,437
-481,511
0
-2,903,948
-2,663,192
-2,903,948
-481,511
0
-3,385,459
-3,144,703
-3,385,459
-481,511
0
-3,866,970
-3,626,215
-3,866,970
-481,511
0
-4,348,481
-4,107,726
-4,348,481
-322,619
3,177,833
-1,493,267
-2,920,874
-1,493,267
-112,937
1,015,811
-590,394
-1,041,831
-590,394
-31,073
621,467
0
-295,197
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,018,942
1,509,471
3,018,942
3,666,179
3,342,560
3,666,179
3,837,208
3,751,693
3,837,208
3,355,697
3,596,453
3,355,697
2,874,186
3,114,941
2,874,186
2,392,675
2,633,430
2,392,675
1,911,164
2,151,919
1,911,164
1,429,652
1,670,408
1,429,652
948,141
1,188,897
948,141
466,630
707,386
466,630
144,011
305,320
144,011
31,073
87,542
31,073
0
15,537
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
105,512
158,892
264,404
233,645
368,574
602,219
262,243
450,438
712,681
251,392
481,511
732,903
217,734
481,511
699,246
184,077
481,511
665,588
150,419
481,511
631,930
116,762
481,511
598,273
83,104
481,511
564,615
49,446
481,511
530,957
21,342
322,619
343,961
6,119
112,937
119,056
1,086
31,073
32,159
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,608,977
0
1,608,977
804,489
1,608,977
953,618
0
2,562,596
2,085,786
2,562,596
953,618
0
3,516,214
3,039,405
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
0
3,516,214
3,516,214
3,516,214
0
-1,608,977
1,907,237
2,711,725
1,907,237
0
-953,618
953,618
1,430,428
953,618
0
-953,618
0
476,809
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-53,633
0
-53,633
-26,816
-53,633
-139,052
0
-192,685
-123,159
-192,685
-202,627
0
-395,312
-293,998
-395,312
-234,414
0
-629,726
-512,519
-629,726
-234,414
0
-864,141
-746,933
-864,141
-234,414
0
-1,098,555
-981,348
-1,098,555
-234,414
0
-1,332,969
-1,215,762
-1,332,969
-234,414
0
-1,567,383
-1,450,176
-1,567,383
-234,414
0
-1,801,798
-1,684,590
-1,801,798
-234,414
0
-2,036,212
-1,919,005
-2,036,212
-234,414
0
-2,270,626
-2,153,419
-2,270,626
-234,414
0
-2,505,040
-2,387,833
-2,505,040
-234,414
0
-2,739,455
-2,622,248
-2,739,455
-234,414
0
-2,973,869
-2,856,662
-2,973,869
-234,414
0
-3,208,283
-3,091,076
-3,208,283
-180,782
1,608,977
-1,780,088
-2,494,185
-1,780,088
-95,362
953,618
-921,831
-1,350,959
-921,831
-31,787
953,618
0
-460,916
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,555,345
777,672
1,555,345
2,369,911
1,962,628
2,369,911
3,120,902
2,745,406
3,120,902
2,886,488
3,003,695
2,886,488
2,652,073
2,769,281
2,652,073
2,417,659
2,534,866
2,417,659
2,183,245
2,300,452
2,183,245
1,948,831
2,066,038
1,948,831
1,714,416
1,831,624
1,714,416
1,480,002
1,597,209
1,480,002
1,245,588
1,362,795
1,245,588
1,011,174
1,128,381
1,011,174
776,759
893,966
776,759
542,345
659,552
542,345
307,931
425,138
307,931
127,149
217,540
127,149
31,787
79,468
31,787
0
15,894
0
0
0
0
0
0
0
0
0
54,359
53,633
107,992
137,188
139,052
276,240
191,904
202,627
394,531
209,958
234,414
444,373
193,573
234,414
427,987
177,187
234,414
411,601
160,802
234,414
395,216
144,416
234,414
378,830
128,030
234,414
362,445
111,645
234,414
346,059
95,259
234,414
329,674
78,874
234,414
313,288
62,488
234,414
296,903
46,103
234,414
280,517
29,717
234,414
264,131
15,206
180,782
195,988
5,555
95,362
100,917
1,111
31,787
32,898
0
0
0
0
0
0
0
0
0
0
0
0
228,637
0
228,637
114,318
228,637
235,267
0
463,904
346,270
463,904
242,090
0
705,994
584,949
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
-228,637
477,357
591,675
477,357
0
-235,267
242,090
359,723
242,090
0
-242,090
0
121,045
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-7,621
0
-7,621
-3,811
-7,621
-23,085
0
-30,706
-19,164
-30,706
-38,997
0
-69,702
-50,204
-69,702
-47,066
0
-116,769
-93,236
-116,769
-47,066
0
-163,835
-140,302
-163,835
-47,066
0
-210,901
-187,368
-210,901
-47,066
0
-257,968
-234,434
-257,968
-47,066
0
-305,034
-281,501
-305,034
-47,066
0
-352,100
-328,567
-352,100
-47,066
0
-399,166
-375,633
-399,166
-47,066
0
-446,233
-422,699
-446,233
-47,066
0
-493,299
-469,766
-493,299
-47,066
0
-540,365
-516,832
-540,365
-47,066
0
-587,431
-563,898
-587,431
-47,066
0
-634,498
-610,964
-634,498
-39,445
228,637
-445,306
-539,902
-445,306
-23,982
235,267
-234,020
-339,663
-234,020
-8,070
242,090
0
-117,010
0
0
0
0
0
0
0
0
0
0
0
0
0
0
221,015
110,508
221,015
433,198
327,107
433,198
636,291
534,745
636,291
589,225
612,758
589,225
542,159
565,692
542,159
495,093
518,626
495,093
448,026
471,559
448,026
400,960
424,493
400,960
353,894
377,427
353,894
306,828
330,361
306,828
259,761
283,294
259,761
212,695
236,228
212,695
165,629
189,162
165,629
118,563
142,096
118,563
71,496
95,029
71,496
32,051
51,774
32,051
8,070
20,060
8,070
0
4,035
0
0
0
0
0
0
0
0
0
7,724
7,621
15,346
22,865
23,085
45,949
37,379
38,997
76,375
42,832
47,066
89,898
39,542
47,066
86,608
36,252
47,066
83,318
32,962
47,066
80,028
29,672
47,066
76,738
26,382
47,066
73,448
23,092
47,066
70,158
19,802
47,066
66,869
16,512
47,066
63,579
13,222
47,066
60,289
9,932
47,066
56,999
6,643
47,066
53,709
3,619
39,445
43,064
1,402
23,982
25,384
282
8,070
8,352
0
0
0
0
0
0
0
0
0
0
0
0
-2,308,762
0
-2,308,762
-1,154,381
-2,308,762
-2,278,983
0
-4,587,744
-3,448,253
-4,587,744
-2,346,421
0
-6,934,166
-5,760,955
-6,934,166
-2,222,155
0
-9,156,321
-8,045,243
-9,156,321
-1,829,782
0
-10,986,104
-10,071,212
-10,986,104
-1,925,678
0
-12,911,781
-11,948,943
-12,911,781
-2,027,302
0
-14,939,083
-13,925,432
-14,939,083
-1,435,561
0
-16,374,644
-15,656,864
-16,374,644
-2,117,798
0
-18,492,443
-17,433,544
-18,492,443
-1,283,394
0
-19,775,837
-19,134,140
-19,775,837
-1,357,099
0
-21,132,936
-20,454,387
-21,132,936
-1,648,211
0
-22,781,148
-21,957,042
-22,781,148
-1,646,288
0
-24,427,436
-23,604,292
-24,427,436
-1,641,851
0
-26,069,287
-25,248,361
-26,069,287
-1,888,859
0
-27,958,146
-27,013,716
-27,958,146
-2,004,011
2,308,762
-27,653,395
-27,805,770
-27,653,395
-2,805,968
2,278,983
-28,180,380
-27,916,887
-28,180,380
-1,975,841
2,346,421
-27,809,799
-27,995,090
-27,809,799
-1,683,019
2,222,155
-27,270,663
-27,540,231
-27,270,663
-317,985
1,829,782
-25,758,866
-26,514,765
0
0
0
0
0
0
76,959
0
76,959
38,479
76,959
229,884
0
306,842
191,900
306,842
384,064
0
690,906
498,874
690,906
536,350
0
1,227,255
959,081
1,227,255
671,414
0
1,898,670
1,562,963
1,898,670
796,596
0
2,695,266
2,296,968
2,695,266
928,362
0
3,623,628
3,159,447
3,623,628
1,043,791
0
4,667,419
4,145,523
4,667,419
1,162,236
0
5,829,655
5,248,537
5,829,655
1,275,609
0
7,105,264
6,467,460
7,105,264
1,363,626
0
8,468,890
7,787,077
8,468,890
1,463,803
0
9,932,693
9,200,792
9,932,693
1,573,619
0
11,506,312
10,719,503
11,506,312
1,683,224
0
13,189,537
12,347,925
13,189,537
1,800,914
0
14,990,451
14,089,994
14,990,451
1,853,718
-2,308,762
14,535,407
14,762,929
14,535,407
1,861,126
-2,278,983
14,117,551
14,326,479
14,117,551
1,866,339
-2,346,421
13,637,468
13,877,509
13,637,468
1,836,015
-2,222,155
13,251,328
13,444,398
13,251,328
1,767,651
-1,829,782
13,189,197
13,220,263
0
0
0
0
-2,231,803
-1,115,901
-2,231,803
-4,280,902
-3,256,352
-4,280,902
-6,243,260
-5,262,081
-6,243,260
-7,929,066
-7,086,163
-7,929,066
-9,087,434
-8,508,250
-9,087,434
-10,216,516
-9,651,975
-10,216,516
-11,315,455
-10,765,985
-11,315,455
-11,707,226
-11,511,340
-11,707,226
-12,662,788
-12,185,007
-12,662,788
-12,670,572
-12,666,680
-12,670,572
-12,664,046
-12,667,309
-12,664,046
-12,848,455
-12,756,250
-12,848,455
-12,921,123
-12,884,789
-12,921,123
-12,879,750
-12,900,437
-12,879,750
-12,967,695
-12,923,723
-12,967,695
-13,117,988
-13,042,841
-13,117,988
-14,062,829
-13,590,408
-14,062,829
-14,172,331
-14,117,580
-14,172,331
-14,019,335
-14,095,833
-14,019,335
-12,569,669
-13,294,502
6.99%
0
0
0
-78,002
-76,959
-154,960
-227,619
-229,884
-457,503
-367,819
-384,064
-751,883
-495,323
-536,350
-1,031,672
-594,727
-671,414
-1,266,141
-674,673
-796,596
-1,471,269
-752,542
-928,362
-1,680,905
-804,643
-1,043,791
-1,848,434
-851,732
-1,162,236
-2,013,968
-885,401
-1,275,609
-2,161,010
-885,445
-1,363,626
-2,249,071
-891,662
-1,463,803
-2,355,465
-900,647
-1,573,619
-2,474,266
-901,741
-1,683,224
-2,584,965
-903,368
-1,800,914
-2,704,283
-911,695
-1,853,718
-2,765,413
-949,970
-1,861,126
-2,811,095
-986,819
-1,866,339
-2,853,158
-985,299
-1,836,015
-2,821,314
-929,286
-1,767,651
-2,696,937
100%
100%
0
0
0
-331,765
1,671,673
1,339,908
-936,052
4,106,847
3,170,795
-1,332,491
7,572,188
6,239,697
-1,083,473
9,612,303
8,528,830
-1,105,434
8,961,727
7,856,293
-1,128,031
9,182,637
8,054,606
-1,151,284
9,614,852
8,463,567
-1,175,212
9,164,188
7,988,977
-1,199,833
9,681,125
8,481,293
-1,225,168
9,670,334
8,445,166
-1,251,238
9,519,671
8,268,433
-1,278,064
11,710,323
10,432,259
-1,305,668
12,512,888
11,207,221
-1,334,072
12,495,707
11,161,635
-1,363,300
12,370,185
11,006,884
-1,393,376
12,211,513
10,818,136
-1,424,324
13,415,292
11,990,968
-1,456,170
12,625,467
11,169,297
-1,488,939
12,605,336
11,116,397
-1,522,658
12,474,702
10,952,044
0
0
0
0
272,942
496,254
1,339,908
-570,712
1,814,702
2,296,101
3,170,795
940,009
3,601,405
4,245,499
6,239,697
1,607,207
4.13
3,890,551
4,834,287
8,528,830
196,007
3,458,268
4,517,619
7,856,293
119,594
3,058,949
4,211,636
8,054,606
-784,021
2,667,625
4,116,001
8,463,567
-1,679,941
2,300,400
4,037,547
7,988,977
-1,651,029
1,936,478
3,956,943
8,481,293
-2,587,871
1,584,233
3,882,298
8,445,166
-2,978,635
1,270,216
3,651,181
8,268,433
-3,347,036
962,752
3,358,048
10,432,259
-6,111,459
661,681
3,207,905
11,207,221
-7,337,635
370,544
3,109,751
11,161,635
-7,681,340
78,014
3,035,597
11,006,884
-7,893,274
-217,110
2,853,010
10,818,136
-8,182,237
-485,587
1,388,118
11,990,968
-11,088,438
-631,524
-592,067
11,169,297
-12,392,888
-645,742
-1,223,873
11,116,397
-12,986,013
-581,618
-1,140,988
10,952,044
-12,674,650
-8,305,755
-7,544,845
-760,909
-38,599,908
-38,599,908
0
-19,063,385
-19,063,385
0
1,710,476
1,710,476
0
1,306,233
1,306,233
0
874,527
874,527
0
1,543,613
1,543,613
0
695,711
695,711
0
755,563
755,563
0
1,032,454
1,032,454
0
1,015,930
1,015,930
0
996,502
996,502
0
1,228,115
1,228,115
0
1,327,455
1,327,455
0
2,113,171
2,113,171
0
1,266,359
1,266,359
0
956,393
956,393
0
-426,258
-426,258
0
10.00%
Capital Revenue Requirement
800,000
600,000
400,000
200,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Capital Revenue Requirement
Return
Depreciation
Total
6
0
0
0
0
0
10
19
Project Integration (Vendor Costs)
15
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
6.67%
Capital Revenue Requirement
500,000
400,000
300,000
200,000
100,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Capital Revenue Requirement
Return
Depreciation
Total
19
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
15
6.67%
Capital Revenue Requirement
100,000
80,000
60,000
40,000
20,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Capital Revenue Requirement
Return
Depreciation
Total
17
18
19
20
21
6.99%
Capital Benefits (FC200 Devices, Capital Meter Replacements)
Capital Asset
Opening Balance
sum Capital Additions (incl. OH)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
15
6.67%
Capital Revenue Requirement
0
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21
-1,000,000
-2,000,000
-3,000,000
AMI EDTI Operating Cost / Benefits
EDTI Operating Costs
EDTI Operating Benefits
Total AMI EDTI Operating Cost / Benefits
10
21
Project Integration (Customer Awareness Program)
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
9
20
6.99%
Capital Asset
Opening Balance
sum Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
8
21
6.99%
Capital Asset
Opening Balance
sum Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
7
20
Incremental Revenue Requirement - AMI
Return
Depreciation
AMI Incremental Operating Cost / Benefits
Net Impact on Revenue Requirement
Net Present Value
Check capital
CF capital
Difference
February 27, 2014
-33,668,411
0
-760,909
760,909
1,389,952
1,479,085
1,389,952
1,479,085
0
0
Appendix A-19 Attachment 3.xls
Rev Req
Page 4 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Sensitivity Analysis * Note: sensitivity factors applied before OH
Capital - Includes Corporate OH
Cap. Cost Sensitivity % Ref.
100%
Cap. Cost ∆
110%
105%
100%
95%
90%
Delta
6,446,182
3,223,091
0
-3,223,091
-6,446,182
-33,668,411
-27,222,229
-30,445,320
-33,668,411
-36,891,502
-40,114,593
Cap. Ben. Sensitivity % Ref.
100%
Cap. Benefit ∆
90%
95%
100%
105%
110%
Delta
1,743,467
871,734
0
-871,734
-1,743,467
-33,668,411
-31,924,943
-32,796,677
-33,668,411
-34,540,145
-35,411,878
Operating
Op. Cost ∆
110%
105%
100%
95%
90%
-33,668,411
-32,454,124
-33,061,268
-33,668,411
-34,275,554
-34,882,697
Delta
1,214,287
607,143
0
-607,143
-1,214,287
Op. Benefit ∆
90%
95%
100%
105%
110%
-33,668,411
-24,084,715
-28,876,563
-33,668,411
-38,460,259
-43,252,106
Delta
9,583,695
4,791,848
0
-4,791,848
-9,583,695
Combined Sensitivities
Net Present Value
-33,668,411
90%
95%
100%
105%
110% ◄ Operating Benefits
110%
-17,638,533
-22,430,381
-27,222,229
-32,014,076
-36,805,924
105%
-20,861,624
-25,653,472
-30,445,320
-35,237,167
-40,029,015
100%
-24,084,715
-28,876,563
-33,668,411
-38,460,259
-43,252,106
95%
-27,307,807
-32,099,654
-36,891,502
-41,683,350
-46,475,197
90%
-30,530,898
-35,322,745
-40,114,593
-44,906,441
-49,698,289
▲
Capital Cost
▼
NPV Delta Relative to Base Case (negative means lower project economics)
90%
95%
100%
105%
110% ◄ Operating Benefits
110%
-16,029,878
-11,238,030
-6,446,182
-1,654,335
3,137,513
105%
-12,806,787
-8,014,939
-3,223,091
1,568,757
6,360,604
100%
-9,583,695
-4,791,848
0
4,791,848
9,583,695
95%
-6,360,604
-1,568,757
3,223,091
8,014,939
12,806,787
90%
-3,137,513
1,654,335
6,446,182
11,238,030
16,029,878
Interpetation:
February 27, 2014
▪ If capital cost were 110% (or 10% higher);
▪ and operating benefits were 90% (or 10% lower);
▪ then project economics (relative to the base case) would decrease (-$16.0 M)
Appendix A-19 Attachment 3.xls
Rev Req
Page 5 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 3 (Implement AMI)
Worksheet: EDTI Capital
● 'DCF' dentoes the row is referenced in the Discounted Cash Flow Worksheet
Year
Capital Escalation Rate (%)
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
EDTI CAPITAL COSTS
AMI METER DEPLOYMENT FORECAST (INITIAL PROJECT)
Meter Population - Pre Installation
Single Phase Meters
Network Meters
Polyphase Meters
Demand Meters
Total (end of year)
299,482
41,407
20,391
621
361,901
305,829
42,285
20,823
634
369,571
Single Phase Meters
Network Meters
Polyphase Meters
Demand Meters
Total (end of year)
Meters (incl. 1/2 of 2015 Growth) - Installation Contract
Phase 1
Contract Total
6,000
308,604
4,000
42,668
21,012
640
10,000
372,924
Phase 2
0
201,736
100,868
302,604
0
25,779
12,889
38,668
0
14,008
7,004
21,012
0
427
213
640
10,000
241,950
120,974
372,924
AMI SYSTEMS (INITIAL PROJECT)
DCF Fixed Network - Initial Capital Cost
DCF Fixed Network - Installation Capital Cost
-1,215,520
-286,760
DCF Hardware - Network Control System
DCF Software - Network Control System
-450,000
-1,631,024
METERS (INITIAL PROJECT)
DCF Meters
DCF Meters - Installation
-1,183,200
-305,700
-28,627,524
-7,396,412
-14,313,640
-3,698,174
-717,839
-2,280,117
-1,517,903
-215,695
-4,013,715
-958,312
-899,640
-221,950
-2,079,902
-586,290
-899,640
-228,387
-1,714,317
-717,839
-760,909
-9,085,919
-9,631,074
-38,103,838
-40,390,068
-19,726,131
-20,909,699
-4.03
7,670
0%
0
-4.15
7,831
100%
-32,463
-4.27
7,996
100%
-34,106
-4.39
8,164
100%
-35,832
-4.52
8,335
100%
-37,645
-4.65
8,510
100%
-39,550
-4.78
8,689
100%
-41,552
-4.92
8,871
100%
-43,655
-5.06
9,058
100%
-45,864
-5.21
9,248
100%
-48,185
-5.36
9,442
100%
-50,624
-5.52
9,640
100%
-53,186
-5.68
9,843
100%
-55,878
-5.84
10,050
100%
-58,706
-6.01
10,261
100%
-61,677
-6.19
10,476
100%
-64,798
-6.36
10,696
100%
-68,077
-6.55
10,921
100%
-71,523
-6.74
11,150
100%
-75,142
-6.93
11,384
100%
-78,945
7,670
7,831
7,996
8,164
8,335
8,510
8,689
8,871
9,058
9,248
9,442
9,640
9,843
10,050
10,261
10,476
10,696
10,921
11,150
11,384
-54.74
50%
-209,937
-54.74
100%
-428,691
-54.74
100%
-437,693
-54.74
100%
-446,885
-54.74
100%
-456,270
-54.74
100%
-465,851
-54.74
100%
-475,634
-54.74
100%
-485,622
-54.74
100%
-495,821
-54.74
100%
-506,233
-54.74
100%
-516,864
-54.74
100%
-527,718
-54.74
100%
-538,800
-54.74
100%
-550,115
-54.74
100%
-561,667
-54.74
100%
-573,462
-54.74
100%
-585,505
-54.74
100%
-597,800
-54.74
100%
-610,354
-54.74
100%
-623,172
5,660
5,824
5,993
6,166
6,345
6,529
6,718
6,913
7,114
7,320
7,532
7,751
7,976
8,207
8,445
8,690
8,942
9,201
9,468
9,742
10,025
68
0.00
0.00
0
0
0.18
0.18
55
321,586
0.18
0.36
0
0
0.18
0.54
0
0
0.19
0.73
0
0
0.19
0.92
0
0
0.20
1.12
0
0
0.20
1.32
0
0
0.20
1.52
0
0
0.21
1.73
87
638,048
0.21
1.94
0
0
0.22
2.16
0
0
0.22
2.38
0
0
0.23
2.61
0
0
0.23
2.84
0
0
0.24
3.08
0
0
0.24
3.32
0
0
0.25
3.57
89
823,115
0.25
3.82
0
0
0.26
4.08
0
0
0.26
4.34
0
0
13,194
1,982
0
0
1,255,135
16,912
0
0
0
1,288,187
9,432
4,265
861
0
1,460,606
17,261
290
0
0
1,351,371
15,801
1,624
114
0
1,435,522
13,613
2,767
260
184
1,566,239
13,464
2,288
711
161
1,586,414
15,030
264
211
29
1,246,803
14,687
0
0
176
1,232,100
14,188
0
0
0
1,080,700
13,327
996
0
0
1,140,823
15,886
0
0
0
1,210,037
15,732
0
0
0
1,198,306
12,145
1,899
0
0
1,164,757
15,305
1,420
538
191
1,595,454
11,924
2,878
195
618
1,715,818
11,870
2,754
390
391
1,595,982
12,915
2,571
452
473
1,719,995
9,263
1,579
-731
829
1,265,847
9,271
2,529
-843
-1,000
181,465
5,675
60%
259,359
1,300
50%
82,037
560
60%
79,565
400
70%
180,396
601,356
4,510
60%
206,116
765
50%
48,275
720
60%
102,298
1,120
70%
505,108
861,797
3,845
50%
146,437
2,225
40%
112,327
1,040
50%
123,136
960
60%
371,100
752,999
3,745
45%
128,365
1,120
35%
49,474
800
45%
85,248
1,360
55%
481,914
745,002
3,360
40%
102,372
650
30%
24,611
640
40%
60,621
320
50%
103,083
290,687
2,765
35%
73,714
1,085
25%
34,234
320
35%
26,522
400
45%
115,969
250,438
3,290
35%
87,710
1,675
25%
52,850
560
35%
46,413
480
45%
139,162
326,135
1,640
30%
37,476
240
20%
6,058
320
30%
22,733
160
40%
41,233
107,500
780
25%
14,853
525
20%
13,252
160
25%
9,472
400
35%
90,198
127,775
1,865
20%
28,411
605
20%
15,271
240
25%
14,208
320
35%
72,158
130,049
4,265
15%
48,730
775
15%
14,672
240
25%
14,208
320
30%
61,850
139,460
3,470
15%
39,646
1,370
15%
25,936
800
25%
47,360
1,200
30%
231,937
344,880
4,050
15%
46,273
1,610
15%
30,480
1,040
25%
61,568
1,120
30%
216,475
354,796
2,715
15%
31,020
1,200
15%
22,718
880
25%
52,096
1,440
30%
278,325
384,159
2,980
15%
34,048
650
15%
12,305
800
25%
47,360
480
30%
92,775
186,488
1,560
15%
17,824
1,005
15%
19,026
240
25%
14,208
640
30%
123,700
174,758
3,870
15%
44,217
1,675
15%
31,710
480
25%
28,416
640
30%
123,700
228,043
5,210
15%
59,527
695
15%
13,157
160
25%
9,472
320
30%
61,850
144,006
3,550
15%
40,561
925
15%
17,512
800
25%
47,360
1,120
30%
216,475
321,907
2,265
15%
25,879
1,325
15%
25,084
880
25%
52,096
80
30%
15,462
118,521
100%
1,856,491
100%
2,149,984
100%
2,213,605
100%
2,096,373
100%
1,726,210
100%
1,816,677
100%
1,912,549
100%
1,354,303
100%
1,359,875
100%
1,210,749
100%
1,280,282
100%
1,554,916
100%
1,553,102
100%
1,548,916
100%
1,781,942
100%
1,890,576
100%
1,824,025
100%
1,864,001
100%
1,587,754
100%
299,986
118.32
30.57
OTHER CAPITAL COSTS (INITIAL PROJECT)
Project Integration - EPCOR Resources
Project Integration - AMI Vendor Resources
Customer Awareness Program
DCF Project Integration ($)
-717,839
AMI Deployment (Initial Project) Total ($)
Fixed Network - Growth
Fixed Network Cost ($ per Meter)
Annual Increase in Meters
Realization Factor (%)
DCF Fixed Network - Growth Capital Cost
Incremental AMI Premium - Growth Meters Cost
New Power Meters Forecast
from Operating worksheet
AMI Meter Cost Premium ($ per Meter)
AMI minus AMR
AMI Meter Premium ($ per Meter)
$118.32 - $63.58
Realization Factor (%)
DCF Incremental AMI Premium - Growth
EDTI CAPITAL BENEFITS
Replacement of FC200 Handheld Devices
Cost ($ per Device)
Escalated Cost ($ per Device)
5,500
Estimated Meter Readers (start of 2014)
Meter Reader FTE Increase Due to Growth
from Ops. Worksheet
Cumulative Meter Reader FTE Increase
2014 onward
Large-Scale Major Device Replacement
4:1 spare
DCF Capital Benefit of Not Having to Replace FC200 Devices
Meter Capital Replacements
2014F
Gov Meter Replacements - Meter Quantity (Status Quo - AMI)
Single Phase Meters
$76.17
Network Meters
$126.21
Polyphase Meters
$236.80
Demand Meters
$644.27
Meter Replacements Cost
Compliance Sampling Meter Replacements
Single Phase Meters
Replacement %
Replacement - Capital Cost
Network Meters
Replacement %
Replacement - Capital Cost
Polyphase Meters
Replacement %
Replacement - Capital Cost
Demand Meters
Replacement %
Replacement - Capital Cost
Compliance Sampling Meter Replacement Cost
Realization Factors (%)
DCF Capital Benefit of Meter Replacement Reduction
February 27, 2014
$76.17
$126.21
$236.80
$644.27
0
0
0%
0
Appendix A-19 Attachment 3.xls
EDTI Capital
Page 6 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 3 (Implement AMI)
Worksheet: EDTI Operating
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Operating Escalation Rate (%)
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
-111,287
-80,382
-113,270
-124,012
-114,514
-82,713
-116,555
-127,608
-117,835
-85,112
-119,935
-131,309
1.0
-121,252
-87,580
-123,413
-135,117
2.0
3.0
-128,387
-92,733
-130,675
-143,067
3.0
-132,110
-95,423
-134,464
-147,216
3.0
-135,942
-98,190
-138,364
-151,486
3.0
-139,884
-101,037
-142,376
-155,879
3.0
-143,940
-103,967
-146,505
-160,399
3.0
-148,115
-106,982
-150,754
-165,051
3.0
-152,410
-110,085
-155,126
-169,837
3.0
-156,830
-113,277
-159,624
-174,762
3.0
-161,378
-116,562
-164,254
-179,831
3.0
-166,058
-119,943
-169,017
-185,046
3.0
-170,874
-123,421
-173,918
-190,412
3.0
-175,829
-127,000
-178,962
-195,934
3.0
-180,928
-130,683
-184,152
-201,616
3.0
-186,175
-134,473
-189,492
-207,463
3.0
-191,574
-138,373
-194,988
-213,479
3.0
-197,130
-142,386
-200,642
-219,670
3.0
-202,846
-146,515
-206,461
-226,041
3.0
0.3
-150,662
0.5
-572,803
-124,769
-90,120
-126,992
-139,035
3.0
3.0
2.0
0.5
-968,167
2.0
0.5
-718,044
2.0
0.5
-738,868
2.0
0.5
-760,295
2.0
0.5
-782,343
2.0
0.5
-805,031
2.0
0.5
-828,377
2.0
0.5
-852,400
2.0
0.5
-877,120
2.0
0.5
-902,556
2.0
0.5
-928,731
2.0
0.5
-955,664
2.0
0.5
-983,378
2.0
0.5
-1,011,896
2.0
0.5
-1,041,241
2.0
0.5
-1,071,437
2.0
0.5
-1,102,509
2.0
0.5
-1,134,481
-326,205
50%
-163,102
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-326,205
100%
-326,205
-36,000
50%
-18,000
-37,044
100%
-37,044
-38,118
100%
-38,118
-39,224
100%
-39,224
-40,361
100%
-40,361
-41,532
100%
-41,532
-42,736
100%
-42,736
-43,975
100%
-43,975
-45,251
100%
-45,251
-46,563
100%
-46,563
-47,913
100%
-47,913
-49,303
100%
-49,303
-50,733
100%
-50,733
-52,204
100%
-52,204
-53,718
100%
-53,718
-55,276
100%
-55,276
-56,879
100%
-56,879
-58,528
100%
-58,528
-60,225
100%
-60,225
-61,972
100%
-61,972
EDTI OPERATING COSTS
AMI Load Center/MDM Operations Cost
Salary & Benefits - AMI Operator
Salary & Benefits - Transition Support
Salary & Benefits - Field Support
Salary & Benefits - IT Support
FTE Requirements - AMI Operators
FTE Requirements - Transition Support
FTE Requirements - Field Support
FTE Requirements - IT Support
DCF AMI Load Centre Operations Cost
Software Licence Fees
Software Licence Fees
Realization Factor (%)
DCF Software Licence Fees
T2 position
A3 position
Meter Installer 1 position
IT2 position
20% of License Cost
Wide Area Network (WAN) Fees
Cellular Backhaul Rental
Realization Factor (%)
DCF Total WAN Fees
EDTI OPERATING BENEFITS
METER READING OPERATIONS
●
Meter Reading Operations
Meter Reading Budget
EWSI Payment
Realization Factor (%)
Meter Reading Operations Benefit
●
New Meter Readers (Site Growth)
New Site (Meter) Growth Rate (%)
Power Meter Inventory (Mid Year)
New Power Meters Forecast
Meter Reader Average Read Rate per Year
Meter Reader FTE Increase Due to Growth
Cumulative Meter Reader FTE Increase
New Meter Reader Salary
New Meter Reader Salary Due to Growth
Realization Factor (%)
New Meter Readers (Site Growth) Benefit
●
Meter Reading Validation - Cumulative
Meter Data Management Budget
EWSI Payment
Realization Factor (%)
Meter Reading Validation - Cumulative Benefit
●
Meter Reading Validation - Interval
Interval Meter Data Line Costs
Interval Meter Data Line Savings
Realization Factor (%)
Interval Meter Data Line Savings
Meter Technician Salary & Benefits
Meter Tech FTE Reduction
Meter Technican Savings
Meter Reading Validation - Interval Benefit
●
MVRS Support Cost Savings
MVRS Annual Support Costs
Realization Factor (%)
Total MVRS Support Cost Benefit
●
Meter Reading Transition Allowance
●
DCF Total Meter Reading Operations Benefit
February 27, 2014
2013A
2013A
6,214,117
-2,835,423
6,394,326
-2,917,650
6,579,762
-3,002,262
0%
0
6,770,575
-3,089,328
30%
1,104,374
6,966,922
-3,178,918
80%
3,030,403
7,168,962
-3,271,107
100%
3,897,855
7,376,862
-3,365,969
100%
4,010,893
7,590,791
-3,463,582
100%
4,127,209
7,810,924
-3,564,026
100%
4,246,898
8,037,441
-3,667,383
100%
4,370,058
8,270,527
-3,773,737
100%
4,496,790
8,510,372
-3,883,175
100%
4,627,197
8,757,173
-3,995,787
100%
4,761,386
9,011,131
-4,111,665
100%
4,899,466
9,272,454
-4,230,903
100%
5,041,550
9,541,355
-4,353,600
100%
5,187,755
9,818,054
-4,479,854
100%
5,338,200
10,102,778
-4,609,770
100%
5,493,008
10,395,758
-4,743,453
100%
5,652,305
10,697,235
-4,881,013
100%
5,816,222
11,007,455
-5,022,563
100%
5,984,893
11,326,671
-5,168,217
100%
6,158,454
Avg 2011 - 2013
2013A
2.10%
357,741
2013A Reads/FTE/YR
520,755
2.10%
365,254
7,513
520,755
75,032
77,208
2.10%
372,924
7,670
520,755
0.18
0.18
79,447
14,042
100%
14,042
2.10%
380,755
7,831
520,755
0.18
0.36
81,751
29,203
100%
29,203
2.10%
388,751
7,996
520,755
0.18
0.54
84,122
45,549
100%
45,549
2.10%
396,915
8,164
520,755
0.19
0.73
86,561
63,154
100%
63,154
2.10%
405,250
8,335
520,755
0.19
0.92
89,072
82,094
100%
82,094
2.10%
413,760
8,510
520,755
0.20
1.12
91,655
102,448
100%
102,448
2.10%
422,449
8,689
520,755
0.20
1.32
94,313
124,303
100%
124,303
2.10%
431,321
8,871
520,755
0.20
1.52
97,048
147,747
100%
147,747
2.10%
440,379
9,058
520,755
0.21
1.73
99,862
172,875
100%
172,875
2.10%
449,626
9,248
520,755
0.21
1.94
102,758
199,787
100%
199,787
2.10%
459,069
9,442
520,755
0.22
2.16
105,738
228,587
100%
228,587
2.10%
468,709
9,640
520,755
0.22
2.38
108,805
259,387
100%
259,387
2.10%
478,552
9,843
520,755
0.23
2.61
111,960
292,303
100%
292,303
2.10%
488,602
10,050
520,755
0.23
2.84
115,207
327,460
100%
327,460
2.10%
498,862
10,261
520,755
0.24
3.08
118,548
364,985
100%
364,985
2.10%
509,338
10,476
520,755
0.24
3.32
121,986
405,018
100%
405,018
2.10%
520,034
10,696
520,755
0.25
3.57
125,523
447,702
100%
447,702
2.10%
530,955
10,921
520,755
0.25
3.82
129,163
493,189
100%
493,189
2.10%
542,105
11,150
520,755
0.26
4.08
132,909
541,641
100%
541,641
2.10%
553,489
11,384
520,755
0.26
4.34
136,763
593,226
100%
593,226
329,221
-144,504
338,768
-148,695
0%
0
348,593
-153,007
0%
0
358,702
-157,444
30%
60,377
369,104
-162,010
80%
165,676
379,808
-166,708
100%
213,100
390,823
-171,543
100%
219,280
402,157
-176,517
100%
225,639
413,819
-181,636
100%
232,183
425,820
-186,904
100%
238,916
438,169
-192,324
100%
245,845
450,876
-197,901
100%
252,974
463,951
-203,641
100%
260,310
477,405
-209,546
100%
267,859
491,250
-215,623
100%
275,627
505,496
-221,876
100%
283,620
520,156
-228,310
100%
291,845
535,240
-234,931
100%
300,309
550,762
-241,745
100%
309,018
566,734
-248,755
100%
317,979
583,170
-255,969
100%
327,201
600,082
-263,392
100%
336,690
2013A
1,600 of 1,873 meters
748,172
769,869
T2 Position
111,287
114,514
792,195
676,728
0%
0
117,835
1
117,835
117,835
815,169
696,354
30%
208,906
121,252
2
242,505
451,411
838,809
716,548
80%
573,238
124,769
3
374,306
947,545
863,134
737,328
100%
737,328
128,387
3
385,161
1,122,489
888,165
758,710
100%
758,710
132,110
3
396,331
1,155,041
913,922
780,713
100%
780,713
135,942
3
407,825
1,188,537
940,426
803,353
100%
803,353
139,884
3
419,651
1,223,005
967,698
826,651
100%
826,651
143,940
3
431,821
1,258,472
995,761
850,624
100%
850,624
148,115
3
444,344
1,294,968
1,024,638
875,292
100%
875,292
152,410
3
457,230
1,332,522
1,054,353
900,675
100%
900,675
156,830
3
470,490
1,371,165
1,084,929
926,795
100%
926,795
161,378
3
484,134
1,410,929
1,116,392
953,672
100%
953,672
166,058
3
498,174
1,451,846
1,148,767
981,328
100%
981,328
170,874
3
512,621
1,493,949
1,182,082
1,009,787
100%
1,009,787
175,829
3
527,487
1,537,274
1,216,362
1,039,071
100%
1,039,071
180,928
3
542,784
1,581,855
1,251,636
1,069,204
100%
1,069,204
186,175
3
558,525
1,627,728
1,287,934
1,100,210
100%
1,100,210
191,574
3
574,722
1,674,932
1,325,284
1,132,117
100%
1,132,117
197,130
3
591,389
1,723,506
1,363,717
1,164,948
100%
1,164,948
202,846
3
608,539
1,773,487
18,362
18,894
19,442
0%
0
20,006
0%
0
20,586
50%
10,293
21,183
100%
21,183
21,798
100%
21,798
22,430
100%
22,430
23,080
100%
23,080
23,750
100%
23,750
24,438
100%
24,438
25,147
100%
25,147
25,876
100%
25,876
26,627
100%
26,627
27,399
100%
27,399
28,194
100%
28,194
29,011
100%
29,011
29,853
100%
29,853
30,718
100%
30,718
31,609
100%
31,609
32,526
100%
32,526
33,469
100%
33,469
-125,000
-125,000
1,520,365
4,074,465
5,317,782
5,489,106
5,666,264
5,849,469
6,038,943
6,234,916
6,437,627
6,647,325
6,864,268
7,088,726
7,320,978
7,561,316
7,810,042
8,067,472
8,333,932
8,609,765
8,895,326
2015 onward
2013A
2013A
2013A
2013A
0
131,878
Appendix A-19 Attachment 3.xls
EDTI Operating
Page 7 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
METER OPERATIONS
Compliance Sampling
Current State - Conventional Metering
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling Cost ($)
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements Cost ($)
Future State - AMI
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling Cost ($)
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements Cost ($)
20 year forecast
2011-2013 3 yr average
89.79
87.72
211.91
645.01
Sum of Quantity x Unit Rate
5,675
1,300
560
400
4,510
765
720
1,120
3,845
2,225
1,040
960
3,745
1,120
800
1,360
3,360
650
640
320
2,765
1,085
320
400
3,290
1,675
560
480
1,640
240
320
160
780
525
160
400
1,865
605
240
320
4,265
775
240
320
3,470
1,370
800
1,200
4,050
1,610
1,040
1,120
2,715
1,200
880
1,440
2,980
650
800
480
1,560
1,005
240
640
3,870
1,675
480
640
5,210
695
160
320
3,550
925
800
1,120
2,265
1,325
880
80
95.07
92.88
224.38
682.96
1,059,125
97.83
95.58
230.89
702.77
1,467,669
100.67
98.35
237.58
723.15
1,547,197
103.59
101.20
244.47
744.12
1,708,857
106.59
104.13
251.56
765.70
831,856
109.68
107.15
258.86
787.91
817,529
112.86
110.26
266.36
810.75
1,094,331
116.14
113.46
274.09
834.27
438,884
119.50
116.75
282.04
858.46
543,016
122.97
120.13
290.22
883.36
654,345
126.54
123.62
298.63
908.97
998,021
130.21
127.20
307.29
935.33
1,994,314
133.98
130.89
316.20
962.46
2,160,164
137.87
134.69
325.37
990.37
2,248,393
141.86
138.59
334.81
1,019.09
1,269,853
145.98
142.61
344.52
1,048.64
1,124,869
150.21
146.75
354.51
1,079.05
1,687,885
154.57
151.00
364.79
1,110.35
1,323,926
159.05
155.38
375.37
1,142.55
2,288,308
163.66
159.89
386.26
1,175.68
1,016,510
13,194
1,982
1,368
0
16,912
0
0
0
9,432
4,265
861
0
17,261
290
0
0
15,801
1,624
114
0
13,613
2,767
260
184
13,464
2,288
711
161
15,030
264
211
29
14,687
0
0
176
14,188
0
0
0
13,327
996
0
0
15,886
0
0
0
15,732
0
0
0
12,145
1,899
0
0
15,305
1,420
538
191
11,924
2,878
195
618
11,870
2,754
390
391
12,915
2,571
452
473
11,263
1,579
1,269
1,829
12,271
3,529
1,157
0
33.17
21.69
15.53
160.28
501,920
34.14
22.31
15.98
164.92
577,300
35.13
22.96
16.45
169.71
443,393
36.14
23.63
16.92
174.63
630,735
37.19
24.31
17.41
179.69
629,143
38.27
25.02
17.92
184.90
628,885
39.38
25.74
18.44
190.27
632,864
40.52
26.49
18.97
195.78
625,731
41.70
27.26
19.52
201.46
647,874
42.91
28.05
20.09
207.30
608,766
44.15
28.86
20.67
213.32
617,152
45.43
29.70
21.27
219.50
721,730
46.75
30.56
21.89
225.87
735,461
48.11
31.45
22.52
232.42
643,952
49.50
32.36
23.18
239.16
861,696
50.94
33.30
23.85
246.09
859,919
52.41
34.26
24.54
253.23
825,080
53.93
35.26
25.25
260.57
921,849
55.50
36.28
25.99
268.13
1,205,731
57.11
37.33
26.74
275.91
863,424
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500
200
50
0
600
300
100
0
0
0
0
0
1,596
459
161
60
5,703
1,132
643
85
1,426
283
161
60
0
0
0
0
340
220
138
200
0
0
0
0
340
220
138
200
0
0
0
0
2,285
714
516
200
7,381
1,420
1,538
85
2,065
493
516
200
95.07
92.88
224.38
682.96
0
97.83
95.58
230.89
702.77
0
100.67
98.35
237.58
723.15
0
103.59
101.20
244.47
744.12
0
106.59
104.13
251.56
765.70
0
109.68
107.15
258.86
787.91
0
112.86
110.26
266.36
810.75
91,802
116.14
113.46
274.09
834.27
131,128
119.50
116.75
282.04
858.46
0
122.97
120.13
290.22
883.36
351,127
126.54
123.62
298.63
908.97
1,130,851
130.21
127.20
307.29
935.33
327,265
133.98
130.89
316.20
962.46
0
137.87
134.69
325.37
990.37
319,481
141.86
138.59
334.81
1,019.09
0
145.98
142.61
344.52
1,048.64
338,280
150.21
146.75
354.51
1,079.05
0
154.57
151.00
364.79
1,110.35
871,307
159.05
155.38
375.37
1,142.55
2,069,033
163.66
159.89
386.26
1,175.68
851,234
0
0
1,368
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,000
0
2,000
1,000
3,000
1,000
2,000
1,000
32.24
21.07
15.10
155.76
0
33.17
21.69
15.53
160.28
21,249
34.14
22.31
15.98
164.92
0
35.13
22.96
16.45
169.71
0
36.14
23.63
16.92
174.63
0
37.19
24.31
17.41
179.69
0
38.27
25.02
17.92
184.90
0
39.38
25.74
18.44
190.27
0
40.52
26.49
18.97
195.78
0
41.70
27.26
19.52
201.46
0
42.91
28.05
20.09
207.30
0
44.15
28.86
20.67
213.32
0
45.43
29.70
21.27
219.50
0
46.75
30.56
21.89
225.87
0
48.11
31.45
22.52
232.42
0
49.50
32.36
23.18
239.16
0
50.94
33.30
23.85
246.09
0
52.41
34.26
24.54
253.23
0
53.93
35.26
25.25
260.57
0
55.50
36.28
25.99
268.13
431,097
57.11
37.33
26.74
275.91
538,034
0
0
0%
0
1,059,125
480,671
100%
1,539,795
1,467,669
577,300
100%
2,044,969
1,547,197
443,393
100%
1,990,590
1,708,857
630,735
100%
2,339,592
831,856
629,143
100%
1,460,999
817,529
628,885
100%
1,446,414
1,002,530
632,864
100%
1,635,394
307,756
625,731
100%
933,487
543,016
647,874
100%
1,190,890
303,218
608,766
100%
911,984
-132,830
617,152
100%
484,322
1,667,049
721,730
100%
2,388,779
2,160,164
735,461
100%
2,895,625
1,928,912
643,952
100%
2,572,863
1,269,853
861,696
100%
2,131,549
786,589
859,919
100%
1,646,509
1,687,885
825,080
100%
2,512,965
452,619
921,849
100%
1,374,468
219,275
774,634
100%
993,909
165,276
325,390
100%
490,666
1,518,605
1,562,645
1,484,513
0%
0
1,607,962
1,527,564
0%
0
1,654,593
1,571,863
30%
471,559
1,702,576
1,617,447
80%
1,293,958
1,751,950
1,664,353
100%
1,664,353
1,802,757
1,712,619
100%
1,712,619
1,855,037
1,762,285
100%
1,762,285
1,908,833
1,813,391
100%
1,813,391
1,964,189
1,865,980
100%
1,865,980
2,021,151
1,920,093
100%
1,920,093
2,079,764
1,975,776
100%
1,975,776
2,140,077
2,033,073
100%
2,033,073
2,202,139
2,092,032
100%
2,092,032
2,266,001
2,152,701
100%
2,152,701
2,331,716
2,215,130
100%
2,215,130
2,399,335
2,279,368
100%
2,279,368
2,468,916
2,345,470
100%
2,345,470
2,540,515
2,413,489
100%
2,413,489
2,614,189
2,483,480
100%
2,483,480
2,690,001
2,555,501
100%
2,555,501
2,768,011
2,629,610
100%
2,629,610
125,858
129,508
0%
0
133,264
113,840
0%
0
137,128
117,141
30%
35,142
141,105
120,538
80%
96,431
145,197
124,034
100%
124,034
149,408
127,631
100%
127,631
153,741
131,332
100%
131,332
158,199
135,141
100%
135,141
162,787
139,060
100%
139,060
167,508
143,092
100%
143,092
172,365
147,242
100%
147,242
177,364
151,512
100%
151,512
182,507
155,906
100%
155,906
187,800
160,427
100%
160,427
193,246
165,080
100%
165,080
198,851
169,867
100%
169,867
204,617
174,793
100%
174,793
210,551
179,862
100%
179,862
216,657
185,078
100%
185,078
222,940
190,445
100%
190,445
229,405
195,968
100%
195,968
0
1,539,795
2,551,671
3,380,978
4,127,978
3,301,249
3,340,031
3,583,926
2,938,526
3,254,076
3,035,002
2,668,908
4,636,717
5,208,754
4,953,073
4,580,785
4,166,772
5,106,316
4,043,026
3,739,855
3,316,245
67.28
2.00
250.00
33,638
0%
0
69.23
71.23
73.30
75.42
77.61
79.86
82.18
84.56
87.01
89.54
92.13
94.81
97.56
100.39
103.30
106.29
109.37
112.55
115.81
119.17
34,613
0%
0
35,617
0%
0
36,650
50%
18,325
37,712
100%
37,712
38,806
100%
38,806
39,932
100%
39,932
41,090
100%
41,090
42,281
100%
42,281
43,507
100%
43,507
44,769
100%
44,769
46,067
100%
46,067
47,403
100%
47,403
48,778
100%
48,778
50,193
100%
50,193
51,648
100%
51,648
53,146
100%
53,146
54,687
100%
54,687
56,273
100%
56,273
57,905
100%
57,905
59,584
100%
59,584
73.91
6
12
5,321
0%
0
76.05
78.25
80.52
82.86
85.26
87.73
90.28
92.90
95.59
98.36
101.22
104.15
107.17
110.28
113.48
116.77
120.15
123.64
127.22
130.91
5,476
0%
0
5,634
0%
0
5,798
50%
2,899
5,966
100%
5,966
6,139
100%
6,139
6,317
100%
6,317
6,500
100%
6,500
6,689
100%
6,689
6,883
100%
6,883
7,082
100%
7,082
7,288
100%
7,288
7,499
100%
7,499
7,716
100%
7,716
7,940
100%
7,940
8,170
100%
8,170
8,407
100%
8,407
8,651
100%
8,651
8,902
100%
8,902
9,160
100%
9,160
9,426
100%
9,426
123,480
127,061
130,746
134,537
138,439
142,454
146,585
150,836
155,210
159,711
164,343
169,109
174,013
179,059
184,252
189,595
195,093
200,751
206,573
212,564
218,728
61,740
47,849
109,589
0%
0
63,530
49,236
112,767
0%
0
65,373
50,664
116,037
30%
34,811
67,269
52,133
119,402
80%
95,521
69,219
53,645
122,865
100%
122,865
71,227
55,201
126,428
100%
126,428
73,292
56,802
130,094
100%
130,094
75,418
58,449
133,867
100%
133,867
77,605
60,144
137,749
100%
137,749
79,856
61,888
141,744
100%
141,744
82,171
63,683
145,854
100%
145,854
84,554
65,530
150,084
100%
150,084
87,006
67,430
154,436
100%
154,436
89,530
69,385
158,915
100%
158,915
92,126
71,398
163,524
100%
163,524
94,798
73,468
168,266
100%
168,266
97,547
75,599
173,145
100%
173,145
100,376
77,791
178,167
100%
178,167
103,286
80,047
183,333
100%
183,333
106,282
82,368
188,650
100%
188,650
109,364
84,757
194,121
100%
194,121
0
0
34,811
116,745
166,543
171,373
176,342
181,456
186,719
192,133
197,705
203,439
209,338
215,409
221,656
228,084
234,699
241,505
248,509
255,715
263,131
89.79
87.72
211.91
645.01
92.39
90.26
218.06
663.72
0
20 year forecast
2011-2013 3 yr average
31.33
20.48
14.67
151.37
Sum of Quantity x Unit Rate
31.33
20.48
14.67
151.37
32.24
21.07
15.10
155.76
0
20 year forecast
Sum of Quantity x Unit Rate
89.79
87.72
211.91
645.01
92.39
90.26
218.06
663.72
0
20 year forecast
Sum of Quantity x Unit Rate
Current State - Future State
Current State - Future State
●
Compliance Sampling Savings ($)
Gov Meter Replacement Savings ($)
Realization Factor (%)
Total Compliance Sampling Benefit
2013A
●
Energize & De-Energize
Energize & De-Energize Cost
Energize & De-Energize Cost (200-A)
Realization Factor (%)
Energize & De-Energize Benefit
2013A
$107,673
$18,185
$125,858
1,600 of 1,873 meters
●
Interval Meter Troubleshooting
Labour Cost
Vehicles Costs Incurred
Total Labour & Vehicles Cost
Replaced Interval Meters
Realization Factor (%)
Interval MeterTroubleshooting Benefit
1,475,807
95%
31.33
20.48
14.67
151.37
DCF Total Meter Operations Benefit
3090
1405
880
1280
7552
3567
1765
1266
DISTRIBUTION OPERATIONS
●
Access to Profile Data for Planning
Rate per Hour - D&T Engineer ($/Hr)
Hours per Day
Work Days per Year
Escalated Value of Planning Data Access
Realization Factor (%)
Planning Data Access Benefit
●
SCADA Support
Rate per Hour - SCADA Technician ($/Hr)
Hours per Month
Months per Year
Escalated Value of SCADA Support Savings
Realization Factor (%)
SCADA Support Benefit
●
Voltage & Power Quality Investigations
Trouble Truck FTE loaded cost ($/Yr)
FTEs required for Voltage Monitoring
Salary Reduction
Vehicle Cost
Voltage & PQ Annual Benefits due to AMI
Realization Factor (%)
Total Voltage & Power Quality Benefit
DCF Total Distribution Operations Benefit
February 27, 2014
2014F (incl. benefits)
2014F (incl. benefits)
750 of approx. 1500 hours
$62.00 x 750 hours
120,000
0.50
60,000
46,500
106,500
Appendix A-19 Attachment 3.xls
EDTI Operating
Page 8 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● AMI Alternative - Cash Flow Table
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Description
AMI - Capital
Capital Costs
Initial Project - System Costs
Initial Project - Meter Costs
Initial Project - Other Costs
Ongoing Costs
Capital Overhead
Capital Costs
Capital Benefits
Capital Benefits
Capital Overhead
Capital Benefits
NET AMI CAPITAL COSTS
AMI - Operating
EDTI Operating Costs
Load Center/MDM Operations
Annual Software Licence Fees
WAN Fees
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
Distribution Operations
EDTI Operating Benefits
NET AMI OPERATING
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
February 27, 2014
A
Calculation
B
2014
F
2018
G
2019
H
2020
I
2021
J
2022
K
2023
L
2024
M
2025
N
2026
O
2027
P
2028
Q
2029
R
2030
S
2031
T
2032
U
2033
V
2034
(0.04)
(0.76)
(3.58)
(1.49) (36.02) (18.01)
(4.01) (2.08) (1.71)
(0.21) (0.46) (0.47) (0.48)
(0.56) (2.31) (1.21) (0.03)
(9.85) (40.88) (21.41) (0.51)
(0.49)
(0.03)
(0.52)
(0.51)
(0.03)
(0.54)
(0.52)
(0.03)
(0.55)
(0.53)
(0.03)
(0.56)
(0.54)
(0.03)
(0.57)
(0.55)
(0.03)
(0.59)
(0.57)
(0.03)
(0.60)
(0.58)
(0.03)
(0.62)
(0.59)
(0.04)
(0.63)
(0.61)
(0.04)
(0.65)
(0.62)
(0.04)
(0.66)
(0.64)
(0.04)
(0.68)
(0.65)
(0.04)
(0.69)
(0.67)
(0.04)
(0.71)
(0.69)
(0.04)
(0.73)
(0.70)
(0.04)
(0.74)
(0.76)
2.18
2.15
2.21
0.13
0.13
0.13
2.31
2.28
2.35
(7.54) (38.60) (19.06)
2.10
0.13
2.22
1.71
1.73
0.10
1.83
1.31
1.82
0.11
1.93
1.39
1.91
0.11
2.03
1.48
1.35
0.08
1.44
0.87
2.00
0.12
2.12
1.54
1.21
0.07
1.28
0.70
1.28
0.08
1.36
0.76
1.55
0.09
1.65
1.03
1.55
0.09
1.65
1.02
1.55
0.09
1.64
1.00
1.78
0.11
1.89
1.23
1.89
0.11
2.00
1.33
2.65
0.16
2.81
2.11
1.86
0.11
1.98
1.27
1.59
0.10
1.68
0.96
0.30
0.02
0.32
(0.43)
(0.15)
(0.16)
(0.02)
(0.33)
(0.57)
(0.33)
(0.04)
(0.94)
(0.97)
(0.33)
(0.04)
(1.33)
(0.72)
(0.33)
(0.04)
(1.08)
(0.74)
(0.33)
(0.04)
(1.11)
(0.76)
(0.33)
(0.04)
(1.13)
(0.78)
(0.33)
(0.04)
(1.15)
(0.81)
(0.33)
(0.04)
(1.18)
(0.83)
(0.33)
(0.05)
(1.20)
(0.85)
(0.33)
(0.05)
(1.23)
(0.88)
(0.33)
(0.05)
(1.25)
(0.90)
(0.33)
(0.05)
(1.28)
(0.93)
(0.33)
(0.05)
(1.31)
(0.96)
(0.33)
(0.05)
(1.33)
(0.98)
(0.33)
(0.05)
(1.36)
(1.01)
(0.33)
(0.06)
(1.39)
(1.04)
(0.33)
(0.06)
(1.42)
(1.07)
(0.33)
(0.06)
(1.46)
(1.10)
(0.33)
(0.06)
(1.49)
(1.13)
(0.33)
(0.06)
(1.52)
0.13
1.54
1.52
2.55
0.03
4.11
3.17
4.07
3.38
0.12
7.57
6.24
5.32
4.13
0.17
9.61
8.53
5.49
3.30
0.17
8.96
7.86
5.67
3.34
0.18
9.18
8.05
5.85
3.58
0.18
9.61
8.46
6.04
2.94
0.19
9.16
7.99
6.23
3.25
0.19
9.68
8.48
6.44
3.04
0.20
9.67
8.45
6.65
2.67
0.20
9.52
8.27
6.86
4.64
0.21
11.71
10.43
7.09
5.21
0.22
12.51
11.21
7.32
4.95
0.22
12.50
11.16
7.56
4.58
0.23
12.37
11.01
7.81
4.17
0.23
12.21
10.82
8.07
5.11
0.24
13.42
11.99
8.33
4.04
0.25
12.63
11.17
8.61
3.74
0.26
12.61
11.12
8.90
3.32
0.26
12.47
10.95
(6.20) (35.43) (12.82) 10.24
9.16
9.44
9.94
8.86
10.02
9.14
9.02
11.46
12.22
12.16
12.23
12.15
14.10
12.44
12.07
10.53
(0.72)
(R1 : R4) x 6.0%
Sum (R1 : R5)
R7 x 6.0%
R7 + R8
R6 + R9
R11 + R12 + R13
R15 + R16 + R17
R14 + R18
R14 + R19
2014 F WACC
C
2015
1.67
1.34
(0.76)
6.99%
$ 36.11
D
2016
E
2017
Appendix A-19 Attachment 3.xls
Cash Flow Table
Page 9 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● AMI Alternative - Revenue Requirement Table
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
A
B
C
D
Description
Calculation
2014
2015
2016
Capital Revenue Requirement - Meters
Return
0.06
1.42
Depreciation (6.7%)
0.06
1.41
Total Capital Revenue Requirement
R1 + R2
0.12
2.83
Capital Revenue Requirement - Fixed Network
Return
0.05
0.11
Depreciation (6.7%)
0.05
0.11
Total Capital Revenue Requirement
R4 + R5
0.11
0.21
Capital Revenue Requirement - NCC System (Software)
Return
0.02
0.03
Depreciation (10.0%)
0.02
0.05
Total Capital Revenue Requirement
R7 + R8
0.04
0.08
Capital Revenue Requirement - NCC System (Hardware)
Return
0.05
0.09
Depreciation (25.0%)
0.22
0.43
Total Capital Revenue Requirement
R10 + R11
0.27
0.52
Capital Revenue Requirement - Project Integration (EDTI Costs)
Return
0.11
0.23
Depreciation (10.0%)
0.16
0.37
Total Capital Revenue Requirement
R13 + R14
0.26
0.60
Capital Revenue Requirement - Project Integration (Vendor Costs)
Return
0.05
0.14
Depreciation (6.7%)
0.05
0.14
Total Capital Revenue Requirement
R16 + R17
0.11
0.28
Capital Revenue Requirement - Project Integration (Customer Awareness Program)
Return
0.01
0.02
Depreciation (6.7%)
0.01
0.02
Total Capital Revenue Requirement
R19 + R20
0.02
0.05
Capital Revenue Requirement - Capital Benefits
Return
(0.08) (0.23)
Depreciation (6.7%)
(0.08) (0.23)
Total Capital Revenue Requirement
R22 + R23
(0.15) (0.46)
AMI - Incremental Operating Cost / Benefit
EDTI Operating Costs
(0.33) (0.94)
EDTI Operating Benefits
1.67
4.11
Total: Incremental Cost / Benefit
R25 + R26
1.34
3.17
AMI - Incremental Revenue Requirement (RR) Impact
R3 + R6 + R9 + R12 +
Net Impact on RR
(0.57)
0.94
R15 + R18 + R21 + R24 R27
Discount Rate
2014 F WACC
6.99%
(33.67)
Net Present Value
E
2017
F
2018
G
2019
H
2020
I
2021
J
2022
K
2023
L
2024
M
2025
N
2026
O
2027
P
2028
Q
2029
R
2030
S
2031
T
2032
U
2033
V
2034
3.29
3.35
6.64
3.73
4.02
7.75
3.49
4.05
7.53
3.24
4.08
7.32
2.98
4.11
7.10
2.73
4.15
6.88
2.48
4.18
6.66
2.22
4.22
6.44
1.96
4.25
6.21
1.70
4.29
5.99
1.44
4.33
5.77
1.18
4.37
5.54
0.91
4.41
5.32
0.65
4.39
5.03
0.43
3.08
3.51
0.32
1.18
1.50
0.31
0.56
0.86
0.31
0.57
0.88
0.10
0.11
0.21
0.09
0.11
0.21
0.09
0.11
0.20
0.08
0.12
0.20
0.08
0.12
0.20
0.07
0.12
0.20
0.07
0.13
0.19
0.06
0.13
0.19
0.06
0.13
0.19
0.05
0.14
0.19
0.05
0.14
0.19
0.04
0.14
0.19
0.03
0.15
0.18
0.03
0.10
0.13
0.03
0.05
0.08
0.03
0.05
0.09
0.03
0.06
0.09
0.03
0.06
0.09
0.03
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.05
0.00
0.05
0.05
0.00
0.02
0.02
0.06
0.43
0.49
0.03
0.43
0.46
0.01
0.22
0.22
0.26
0.45
0.71
0.25
0.48
0.73
0.22
0.48
0.70
0.18
0.48
0.67
0.15
0.48
0.63
0.12
0.48
0.60
0.08
0.48
0.56
0.05
0.48
0.53
0.02
0.32
0.34
0.01
0.11
0.12
0.00
0.03
0.03
0.19
0.20
0.39
0.21
0.23
0.44
0.19
0.23
0.43
0.18
0.23
0.41
0.16
0.23
0.40
0.14
0.23
0.38
0.13
0.23
0.36
0.11
0.23
0.35
0.10
0.23
0.33
0.08
0.23
0.31
0.06
0.23
0.30
0.05
0.23
0.28
0.03
0.23
0.26
0.02
0.18
0.20
0.01
0.10
0.10
0.00
0.03
0.03
0.04
0.04
0.08
0.04
0.05
0.09
0.04
0.05
0.09
0.04
0.05
0.08
0.03
0.05
0.08
0.03
0.05
0.08
0.03
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.05
0.00
0.04
0.04
0.00
0.02
0.03
0.00
0.01
0.01
(0.37)
(0.38)
(0.75)
(0.50)
(0.54)
(1.03)
(0.59)
(0.67)
(1.27)
(0.67)
(0.80)
(1.47)
(0.75)
(0.93)
(1.68)
(0.80)
(1.04)
(1.85)
(0.85)
(1.16)
(2.01)
(0.89)
(1.28)
(2.16)
(0.89)
(1.36)
(2.25)
(0.89)
(1.46)
(2.36)
(0.90)
(1.57)
(2.47)
(0.90)
(1.68)
(2.58)
(0.90)
(1.80)
(2.70)
(0.91)
(1.85)
(2.77)
(0.95)
(1.86)
(2.81)
(0.99)
(1.87)
(2.85)
(0.99)
(1.84)
(2.82)
(0.93)
(1.77)
(2.70)
(1.33)
7.57
6.24
(1.08)
9.61
8.53
(1.11)
8.96
7.86
(1.13)
9.18
8.05
(1.15)
9.61
8.46
(1.18)
9.16
7.99
(1.20)
9.68
8.48
(1.23)
9.67
8.45
(1.25)
9.52
8.27
(1.28)
11.71
10.43
(1.31)
12.51
11.21
(1.33)
12.50
11.16
(1.36)
12.37
11.01
(1.39)
12.21
10.82
(1.42)
13.42
11.99
(1.46)
12.63
11.17
(1.49)
12.61
11.12
(1.52)
12.47
10.95
1.61
0.20
0.12
(0.78)
(1.68)
(1.65)
(2.59)
(2.98)
(3.35)
(6.11)
(7.34)
(7.68)
(7.89)
(8.18)
(11.09) (12.39) (12.99) (12.67)
● AMI Alternative - Revenue Requirement Chart
$ Millions
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
($2.5)
2015
$0.0
2014
$2.5
2016
Incremental Impact to Revenue Requirement (RR)
(AMI Net Capital RR & Incremental AMI Operating Cost / Benefits)
($5.0)
($7.5)
($10.0)
($12.5)
($15.0)
February 27, 2014
Year
Appendix A-19 Attachment 3.xls
Rev Requirement Table
Page 10 of 17
EPCOR Distribution & Transmission Inc.
($ millions)
1
2
3
4
5
110%
105%
100%
95%
90%
▲
Capital
Cost
A
90%
(17.64)
(20.86)
(24.08)
(27.31)
(30.53)
February 27, 2014
B
95%
(22.43)
(25.65)
(28.88)
(32.10)
(35.32)
C
100%
(27.22)
(30.45)
(33.67)
(36.89)
(40.11)
D
105%
(32.01)
(35.24)
(38.46)
(41.68)
(44.91)
2014-2015 PBR Capital Tracker
E
110% ◄ Operating Benefits
(36.81)
(40.03)
(43.25)
(46.48)
(49.70)
Appendix A-19 Attachment 3.xls
Sensitivity Table
Page 11 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
3.1 AMI Costs
3.1.1 AMI Capital Costs
($ millions)
Description
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Escalation
AMI - Initial Project Capital Cost
Fixed Network - Initial Capital Cost
Fixed Network - Installation Capital Cost
Hardware - Network Control System
Software - Network Control System
Meters
Meters - Installation
Project Integration - EPCOR Resources
Project Integration - AMI Vendor Resources
Customer Awareness Program
AMI - Initial Project Capital Cost
AMI - Fixed Network Growth
Power Meter Inventory (Mid Year)
Fixed Network Cost ($ per Meter)
Annual Increase in Meters
Realization Factor (%)
Fixed Network - Growth Capital Cost
AMI - Incremental Meter Cost Growth
New Power Meters Forecast
AMI Meter Premium ($ per Meter)
Realization Factor (%)
Incremental AMI Premium - Growth
AMI - Total Capital Cost
Total AMI Capital Cost
Capital Overhead
Total AMI Capital Cost incl. OH
February 27, 2014
A
Calculation
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
Sum (R1 - R9)
(0.72)
(1.22)
(0.29)
(0.45)
(1.63)
(1.18)
(0.31)
(2.28)
(1.52)
(0.22)
(9.09)
(R1 + R2) / R11
2.1% (2011-2013 Actual)
365,254
0.00
0
0
372,924
(4.03)
7,670
0
380,755
(4.15)
7,831
100
(0.03)
388,751
(4.27)
7,996
100
(0.03)
0
0.00
0
7,670
(54.74)
50
(0.21)
7,831
(54.74)
100
(0.43)
7,996
(54.74)
100
(0.44)
(0.72)
(0.04)
(0.76)
(9.30)
(0.56)
(9.85)
(38.56)
(2.31)
(40.88)
(20.20)
(1.21)
(21.41)
(0.72)
R12 x R13 x R14
2.1% (2011-2013 Actual)
R16 x R17 x R18
R10 + R15 + R19
R20 x 6.00%
R20 + R21
Appendix A-19 Attachment 3.xls
Capital Cost Table
(28.63)
(7.40)
(0.96)
(0.90)
(0.22)
(38.10)
(14.31)
(3.70)
(0.59)
(0.90)
(0.23)
(19.73)
Page 12 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● AMI Capital Benefits
($ millions)
Description
7
8
9
10
11
12
13
14
Escalation
Replacement of FC200 Handheld Devices
Escalated Cost ($ per Device)
Estimated Meter Readers (start of 2014)
Meter Reader FTE Increase Due to Growth
Cumulative Meter Reader FTE Increase
Large-Scale Major Device Replacement
Capital Benefit of Not Having to Replace FC200 Devices
Meter Capital Replacements
Single Phase Meters - (Cost per Meter)
Network Meters - (Cost per Meter)
Polyphase Meters - (Cost per Meter)
Demand Meters - (Cost per Meter)
Single Phase Meters - (Meter Quantity)
Network Meters - (Meter Quantity)
Polyphase Meters - (Meter Quantity)
Demand Meters - (Meter Quantity)
15
Meter Replacements Cost
16
17
Realization Factors (%)
Capital Benefit of Meter Replacement Reduction
AMI - Total Capital Benefit
Total AMI Capital Benefit
Corporate Overhead (OH) Rate (%)
Total AMI Capital Benefit incl. OH
1
2
3
4
5
6
18
19
20
February 27, 2014
A
Reference / Calculation
4:1 Spare (25%)
R1 x R5
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
F
2018
2.9%
5,660
68
0.00
0.00
0
5,824
5,993
6,166
6,345
0.18
0.18
55
0.32
0.18
0.36
0
0.18
0.54
0
0.19
0.73
0
0
0
0
0
16,599
2,632
336
280
19,618
383
432
784
11,355
5,155
1,381
576
18,946
682
360
748
0.00
1.86
2.15
2.21
2.10
0
100
1.86
100
2.15
100
2.21
100
2.10
0.00
2.18
0.13
2.31
2.15
0.13
2.28
2.21
0.13
2.35
2.10
0.13
2.22
$76.17
$126.21
$236.8
$644.27
(R12 x R16) + (R13 x R17) +
(R14 x R18) + (R15 x R19)
R6 + R17
6.00
R23 x (1 + R24)
Appendix A-19 Attachment 3.xls
Capital Benefits Table
0.00
Page 13 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
3.1.2 AMI Operating Costs
($ millions)
Description
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Escalation
AMI Load Center/MDM Operations Cost
Salary & Benefits - AMI Operator
Salary & Benefits - Transition Support
Salary & Benefits - Field Support
Salary & Benefits - IT Support
FTE Requirements - AMI Operators
FTE Requirements - Transition Support
FTE Requirements - Field Support
FTE Requirements - IT Support
AMI Load Centre Operations Cost
Software Licence Fees
Software Licence Fees
Realization Factor (%)
Software Licence Fees
Wide Area Network (WAN) Fees
Cellular Backhaul Rental
Realization Factor (%)
Total WAN Fees
Total AMI Operating Cost
Total AMI Operating Cost
February 27, 2014
A
Reference / Calculation
B
2015
2.9%
C
2016
2.9%
D
2017
2.9%
E
2018
2.9%
2013 - T2 Position
2013 - A3 Position
2013 - Meter Installer Position
2013 - IT2 Position
(R1 x R4) + (R2 x R5) + (R3 x R6)
(0.12)
(0.09)
(0.12)
(0.13)
1.00
0.00
0.00
0.25
(0.15)
(0.12)
(0.09)
(0.12)
(0.14)
2.00
3.00
0.00
0.50
(0.57)
(0.12)
(0.09)
(0.13)
(0.14)
3.00
3.00
2.00
0.50
(0.97)
(0.13)
(0.09)
(0.13)
(0.14)
3.00
0.00
2.00
0.50
(0.72)
R8 x R9
(0.33)
50
(0.16)
(0.33)
100
(0.33)
(0.33)
100
(0.33)
(0.33)
100
(0.33)
R11 x R12
(0.04)
50
(0.02)
(0.04)
100
(0.04)
(0.04)
100
(0.04)
(0.04)
100
(0.04)
R7 + R10 + R13
(0.33)
(0.94)
(1.33)
(1.08)
Appendix A-19 Attachment 3.xls
Operating Cost Table
Page 14 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
AMI Operating Benefits
Meter Reading Operations
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Description
Escalation
Meter Reading Operations
Meter Reading Budget
EWSI Payment
Realization Factor (%)
Meter Reading Operations Benefit
New Meter Readers (Site Growth)
New Site (Meter) Growth Rate (%)
Power Meter Inventory (Mid Year)
New Power Meters Forecast
Meter Reader Average Read Rate per Year
Meter Reader FTE Increase Due to Growth
Cumulative Meter Reader FTE Increase
New Meter Reader Salary
New Meter Reader Salary Due to Growth
Realization Factor (%)
New Meter Readers (Site Growth) Benefit
Meter Reading Validation - Cumulative
Meter Data Management Budget
EWSI Payment
Realization Factor (%)
Meter Reading Validation - Cumulative Benefit
Meter Reading Validation - Interval
Interval Meter Data Line Costs
Interval Meter Data Line Savings
Realization Factor (%)
Interval Meter Data Line Savings
Meter Technician Salary & Benefits
Meter Tech FTE Reduction
Meter Technican Savings
Meter Reading Validation - Interval Benefit
MVRS Support Cost Savings
MVRS Annual Support Costs
Realization Factor (%)
Total MVRS Support Cost Benefit
Meter Reading Transition Allowance
Total Meter Reading Operations Benefit
Total Meter Reading Operations Benefit
February 27, 2014
A
Reference / Calculation
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
F
2018
2.9%
2013A : $6.21
2013A: $2.84
6.39
(2.92)
0
6.58
(3.00)
0
6.77
(3.09)
30
1.10
6.97
(3.18)
80
3.03
7.17
(3.27)
100
3.90
2.10
365,254
7,513
520,755
0.00
0.00
0.08
0.00
0
2.10
372,924
7,670
520,755
0.18
0.18
0.08
0.01
100
0.01
2.10
380,755
7,831
520,755
0.18
0.36
0.08
0.03
100
0.03
2.10
388,751
7,996
520,755
0.18
0.54
0.08
0.05
100
0.05
2.10
396,915
8,164
520,755
0.19
0.73
0.09
0.06
100
0.06
0.34
(0.15)
0
0.35
(0.15)
0
0.36
(0.16)
30
0.06
0.37
(0.16)
80
0.17
0.38
(0.17)
100
0.21
0.77
0.00
0
0.79
0.68
0
0.00
0.12
1.0
0.12
0.12
0.82
0.70
30
0.21
0.12
2.0
0.24
0.45
0.84
0.72
80.0
0.57
0.12
3.0
0.37
0.95
0.86
0.74
100.0
0.74
0.13
3.0
0.39
1.12
0.02
0
0.02
0
0.02
0
0.00
0.00
(0.13)
0.02
50
0.01
(0.13)
0.02
100
0.02
0.00
0.00
0.13
1.52
4.07
5.32
(R1 + R2) x R3
2013 A: 357,741
R5 x R6
2013 A
(R7 x 12) / R8
2015 onward
R10 x R11
R12 x R13
2013 A: $0.33
2013 A: $0.15
(R15 + R16) x R17
2013 A: $0.75 (1873 meters)
R19 x 1,600 / 1,873
R20 x R21
T2 Position
0.11
0.0
0.00
R23 x R24
R22 + R25
2013 A
R27 x R28
R4 + R14 + R18 + R22 + R26 + R29+ R30
Appendix A-19 Attachment 3.xls
Operating Benefits Table
Page 15 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Meter Operations
($ millions)
Description
9
10
11
12
Escalation
Compliance Sampling
UNIT RATES
Compliance Sampling Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
CURRENT STATE
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
13
Compliance Sampling Cost ($)
14
15
16
17
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
18
Gov Meter Replacements Cost ($)
19
20
21
22
FUTURE STATE
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
23
Compliance Sampling Cost ($)
24
25
26
27
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
28
Gov Meter Replacements Cost ($)
1
2
3
4
5
6
7
8
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
CURRENT STATE minus FUTURE STATE
Compliance Sampling Savings ($)
Gov Meter Replacement Savings ($)
Realization Factor (%)
Total Compliance Sampling Benefit
Energize & De-Energize
Energize & De-Energize Cost
200-A Services (%)
Energize & De-Energize Cost (200-A)
Realization Factor (%)
Energize & De-Energize Benefit
Interval Meter Troubleshooting
Labour Cost
Vehicles Costs Incurred
Total Labour & Vehicles Cost
Replaced Interval Meters
Realization Factor (%)
Interval MeterTroubleshooting Benefit
Total Meter Operations Savings
Total Meter Operations Savings
February 27, 2014
A
Reference / Calculation
3 year average (2011 - 2013)
89.79
87.72
211.91
645.01
3 year average (2011 - 2013)
31.33
20.48
14.67
151.37
(R1 x R9) + (R2 x R10) +
(R3 x R11) + (R4 x R12)
(R5 x R14) + (R6 x R15) +
(R7 x R16) + (R8 x R17)
(R1 x R19) + (R2 x R20) +
(R3 x R21) + (R4 x R22)
(R5 x R24) + (R6 x R25) +
(R7 x R26) + (R8 x R27)
R13 - R23
R18 - R28
(R29 + R30) x R31
2013 A
95
R33 x R34
R35 x R36
2013 A - $0.11
2013 A - $0.02
R38 + R39 (escalated)
R40 * (1,600 / 1,873)
R41 x R42
R32 + R37 + R43
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
F
2018
2.9%
92.39
90.26
218.06
663.72
95.07
92.88
224.38
682.96
97.83
95.58
230.89
702.77
100.67
98.35
237.58
723.15
103.59
101.20
244.47
744.12
32.24
21.07
15.10
155.76
33.17
21.69
15.53
160.28
34.14
22.31
15.98
164.92
35.13
22.96
16.45
169.71
36.14
23.63
16.92
174.63
0
0
0
0
5,675
1,300
560
400
4,510
765
720
1,120
3,845
2,225
1,040
960
3,745
1,120
800
1,360
0.00
1.06
1.47
1.55
1.71
0
0
0
0
13,194
1,982
1,368
0
16,912
0
0
0
9,432
4,265
861
0
17,261
290
0
0
0.00
0.50
0.58
0.44
0.63
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,368
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.02
0
0
0
0.00
0.00
0
1.06
0.48
100
1.54
1.47
0.58
100
2.04
1.55
0.44
100
1.99
1.71
0.63
100
2.34
1.56
1.61
1.65
1.70
1.75
1.48
0
1.53
0
1.57
30
0.47
1.62
80
1.29
1.66
100
1.66
0.13
0.11
0
0.13
0.12
0
0.14
0.12
30
0.04
0.14
0.12
80
0.10
0.15
0.13
100
0.12
1.54
2.55
3.38
4.13
Appendix A-19 Attachment 3.xls
Operating Benefits Table
Page 16 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Distribution Operations
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Description
Escalation
Access to Profile Data for Planning
Rate per Hour - D&T Engineer ($/Hr)
Hours per Day
Work Days per Year
Escalated Value of Planning Data Access
Realization Factor (%)
Planning Data Access Benefit
SCADA Support
Rate per Hour - SCADA Technician ($/Hr)
Hours per Month
Months per Year
Escalated Value of SCADA Support Savings
Realization Factor (%)
SCADA Support Benefit
Voltage & Power Quality Investigations
Trouble Truck FTE loaded cost ($/Yr)
FTEs required for Voltage Monitoring
Salary Reduction
Vehicle Cost
Voltage & PQ Annual Benefits due to AMI
Realization Factor (%)
Total Voltage & Power Quality Benefit
Total Distribution Operations Savings
Total Distribution Operations Savings
February 27, 2014
A
Reference / Calculation
B
2014
2.9%
C
2015
2.9%
D
2016
2.9%
E
2017
2.9%
F
2018
2.9%
67.28
2
250
R1 x R2 x R3
67.28
69.23
71.23
73.30
75.42
0.03
0
0.03
0
0.04
0
0.04
50
0.02
0.04
100
0.04
73.91
76.05
78.25
80.52
82.86
0.005
0
0.005
0
0.006
0
0.006
50
0.003
0.006
100
0.006
0.12
0.13
0.13
0.13
0.14
0.06
0.05
0.11
0
0.06
0.05
0.11
0
0.07
0.05
0.12
30
0.03
0.07
0.05
0.12
80
0.10
0.07
0.05
0.12
100
0.12
0.03
0.12
0.17
R4 x R6
73.91
6
12
R7 x R8 x R9
R10 x R11
120,000
0.5
R13 x R14
46,500
R15 + R16
R17 x R18
R6 + R12 + R19
Appendix A-19 Attachment 3.xls
Operating Benefits Table
Page 17 of 17
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 4 (AMR Fixed Network)
Worksheet: Cash Flow
● Positive Value = Benefit
● Negative Value = Cost
DCF NPV Summary
DCF Net Present Value ($)
Discount Rate (WACC) (%)
32,497,384
6.99%
Revenue Requirement NPV Summary
RR Net Present Value ($)
-28,495,969
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Capital Costs
Initial Project - System Costs
Fixed Network - Initial Capital Cost
Fixed Network - Installation Capital Cost
Hardware - NCC
Software - NCC
0
0
0
0
-1,215,520
-286,760
-450,000
-1,631,024
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Project - Meter Costs
AMI Meters
AMI Meters - Installation
0
0
-940,000
-305,700
-22,743,300
-7,396,412
-11,371,553
-3,698,174
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Initial Project - Other Costs
Project Integration
-717,839
-4,015,212
-2,079,902
-1,714,317
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
116,666
-32,463
238,231
-34,106
243,234
-35,832
248,342
-37,645
253,557
-39,550
258,882
-41,552
264,318
-43,655
269,869
-45,864
275,536
-48,185
281,323
-50,624
287,230
-53,186
293,262
-55,878
299,421
-58,706
305,709
-61,677
312,128
-64,798
318,683
-68,077
325,375
-71,523
332,208
-75,142
339,185
-78,945
346,308
100%
-717,839
-8,727,550
-32,013,845
-16,574,916
212,510
215,912
219,332
222,766
226,214
229,672
233,137
236,606
240,076
243,543
247,003
250,452
253,885
257,298
260,686
264,042
267,362
6.00%
-43,070
-523,653
-1,920,831
-994,495
12,751
12,955
13,160
13,366
13,573
13,780
13,988
14,196
14,405
14,613
14,820
15,027
15,233
15,438
15,641
15,843
16,042
-760,909
-9,251,203
-33,934,676
-17,569,411
225,261
228,867
232,491
236,132
239,787
243,453
247,126
250,803
254,481
258,156
261,823
265,479
269,118
272,736
276,327
279,885
283,404
0
0
321,586
1,856,491
0
2,149,984
0
2,213,605
0
2,096,373
0
1,726,210
0
1,816,677
0
1,912,549
0
1,354,303
638,048
1,359,875
0
1,210,749
0
1,280,282
0
1,554,916
0
1,553,102
0
1,548,916
0
1,781,942
0
1,890,576
823,115
1,824,025
0
1,864,001
0
1,587,754
0
299,986
100%
0
2,178,077
2,149,984
2,213,605
2,096,373
1,726,210
1,816,677
1,912,549
1,354,303
1,997,923
1,210,749
1,280,282
1,554,916
1,553,102
1,548,916
1,781,942
1,890,576
2,647,139
1,864,001
1,587,754
299,986
6.00%
0
130,685
128,999
132,816
125,782
103,573
109,001
114,753
81,258
119,875
72,645
76,817
93,295
93,186
92,935
106,917
113,435
158,828
111,840
95,265
17,999
0
2,308,762
2,278,983
2,346,421
2,222,155
1,829,782
1,925,678
2,027,302
1,435,561
2,117,798
1,283,394
1,357,099
1,648,211
1,646,288
1,641,851
1,888,859
2,004,011
2,805,968
1,975,841
1,683,019
317,985
-760,909
-6,942,442
-31,655,693
-15,222,989
2,447,416
2,058,649
2,158,169
2,263,434
1,675,348
2,361,251
1,530,520
1,607,902
1,902,692
1,904,444
1,903,674
2,154,338
2,273,129
3,078,704
2,252,168
1,962,904
601,390
100%
0
0
0
0
-150,662
-163,102
-18,000
-331,765
-572,803
-335,665
-37,044
-945,512
-968,167
-345,399
-38,118
-1,351,685
-718,044
-355,416
-39,224
-1,112,684
-738,868
-365,723
-40,361
-1,144,952
-760,295
-376,329
-41,532
-1,178,155
-782,343
-387,242
-42,736
-1,212,322
-805,031
-398,472
-43,975
-1,247,479
-828,377
-410,028
-45,251
-1,283,656
-852,400
-421,919
-46,563
-1,320,882
-877,120
-434,154
-47,913
-1,359,188
-902,556
-446,745
-49,303
-1,398,604
-928,731
-459,700
-50,733
-1,439,163
-955,664
-473,032
-52,204
-1,480,899
-983,378
-486,750
-53,718
-1,523,845
-1,011,896
-500,865
-55,276
-1,568,037
-1,041,241
-515,390
-56,879
-1,613,510
-1,071,437
-530,337
-58,528
-1,660,302
-1,102,509
-545,717
-60,225
-1,708,450
-1,134,481
-561,542
-61,972
-1,757,995
100%
0
0
0
131,878
1,539,795
1,671,673
1,520,365
2,081,131
3,601,496
4,074,465
2,089,817
6,164,282
5,317,782
2,467,223
7,785,005
5,489,106
1,592,331
7,081,437
5,666,264
1,581,554
7,247,818
5,849,469
1,774,454
7,623,923
6,038,943
1,076,579
7,115,523
6,234,916
1,338,133
7,573,049
6,437,627
1,063,496
7,501,123
6,647,325
640,228
7,287,553
6,864,268
2,549,206
9,413,474
7,088,726
3,060,705
10,149,430
7,320,978
2,742,730
10,063,708
7,561,316
2,306,343
9,867,658
7,810,042
1,826,371
9,636,413
8,067,472
2,698,043
10,765,515
8,333,932
1,564,913
9,898,845
8,609,765
1,189,877
9,799,643
8,895,326
692,317
9,587,644
0
1,339,908
2,655,984
4,812,597
6,672,321
5,936,485
6,069,663
6,411,601
5,868,044
6,289,393
6,180,241
5,928,365
8,014,870
8,710,267
8,582,809
8,343,813
8,068,376
9,152,005
8,238,544
8,091,192
7,829,648
-760,909
-5,602,534
-28,999,709
-10,410,392
9,119,737
7,995,134
8,227,832
8,675,036
7,543,392
8,650,644
7,710,761
7,536,267
9,917,562
10,614,711
10,486,484
10,498,151
10,341,505
12,230,709
10,490,712
10,054,097
8,431,038
Ongoing Costs
Fixed Network - Ongoing Capital Cost
AMI Premium on Meter Growth
Capital Costs Before Capital Overhead
Capital Overhead
Capital Costs with Capital Overhead
Benefits
Replace FC200 Handheld Devices
Capital Meter Replacements
Capital Benefits before Capital Overhead
Capital Overhead
Capital Benefits with Capital Overhead
NET AMI CAPITAL COSTS
AMI OPERATING
EDTI Operating Costs
Load Center/MDM Operations
Annual Software Licence Fees
WAN Fees
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
EDTI Operating Benefits
NET AMI OPERATING
NET ANNUAL CASH FLOW
NPV
IRR
February 28, 2014
32,497,384 --> 2014 + NPV(WACC, 2015 to end)
15.3%
Appendix A-19 Attachment 4.xls
Cash Flow
Page 1 of 10
EPCOR Distribution & Transmission Inc.
Sensitivity Analysis
2014-2015 PBR Capital Tracker
Capital - Includes Corporate OH
Operating
Rates
Cap. Cost ∆
110%
105%
100%
95%
90%
32,497,384
27,355,836
29,926,610
32,497,384
35,068,159
37,638,933
Delta
-5,141,548
-2,570,774
0
2,570,774
5,141,548
Op. Cost ∆
110%
105%
100%
95%
90%
32,497,384
31,197,154
31,847,269
32,497,384
33,147,500
33,797,615
Delta
-1,300,230
-650,115
0
650,115
1,300,230
Cap. Benefit ∆
90%
95%
100%
105%
110%
32,497,384
30,462,986
31,480,185
32,497,384
33,514,584
34,531,783
Delta
-2,034,399
-1,017,199
0
1,017,199
2,034,399
Op. Benefit ∆
90%
95%
100%
105%
110%
32,497,384
24,840,266
28,668,825
32,497,384
36,325,944
40,154,503
Delta
-7,657,119
-3,828,559
0
3,828,559
7,657,119
Base Case Capital Escalation
Escalation ∆
2.10%
2.50%
2.90%
3.30%
3.70%
32,497,384
32,467,461
32,481,962
32,497,384
32,513,782
32,531,213
2.90%
Delta
-29,923
-15,422
16,398
33,828
Base Case Ops. Escalation
Escalation ∆
2.10%
2.50%
2.90%
3.30%
3.70%
32,497,384
27,246,408
29,807,599
32,497,384
35,322,740
38,291,028
Capital OH ∆
7%
9%
11%
32,497,384
32,204,257
31,618,002
31,031,748
Delta
-293,127
-879,382
-1,465,637
WACC ∆
6.96%
7.00%
7.20%
7.40%
32,497,384
32,694,333
32,431,921
31,141,997
29,888,132
Delta
196,949
-65,463
-1,355,388
-2,609,253
2.90%
Delta
-5,250,977
-2,689,785
0
2,825,355
5,793,643
Escalation has minimal impact on capital as values in
capital worksheet hardcoded
Combined Sensitivities
Net Present Value
32,497,384
90%
95%
100%
105%
110% ◄ Operating Benefits
110%
19,698,718
23,527,277
27,355,836
31,184,395
35,012,955
105%
22,269,492
26,098,051
29,926,610
33,755,169
37,583,729
100%
24,840,266
28,668,825
32,497,384
36,325,944
40,154,503
95%
27,411,040
31,239,599
35,068,159
38,896,718
42,725,277
90%
29,981,814
33,810,373
37,638,933
41,467,492
45,296,051
▲
Capital Cost
▼
NPV Delta Relative to Base Case (negative means lower project economics)
90%
95%
100%
105%
110% ◄ Operating Benefits
110%
-12,798,667
-8,970,108
-5,141,548
-1,312,989
2,515,570
105%
-10,227,893
-6,399,333
-2,570,774
1,257,785
5,086,344
100%
-7,657,119
-3,828,559
0
3,828,559
7,657,119
95%
-5,086,344
-1,257,785
2,570,774
6,399,333
10,227,893
90%
-2,515,570
1,312,989
5,141,548
8,970,108
12,798,667
Interpetation:
February 28, 2014
▪ If capital cost were 110% (or 10% higher);
▪ and operating benefits were 90% (or 10% lower);
▪ then project economics (relative to the base case) would decrease (-$12.8 M)
Appendix A-19 Attachment 4.xls
Cash Flow
Page 2 of 10
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 4 (AMR Fixed Network)
Worksheet: Revenue Requirement
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Note: Retirement Logic not automatic - if depreciation rate changes, manually adjust retirements
1
s
s
Initial Project AMI Meters + AMI Meters Installation
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Initial Project AMI Meters + Installation)
Retirements (Initial Project AMI Meters + Installation)
Capital Additions (incl. OH) (Ongoing Cost AMI Premium on Growth Meters)
Retirements (Ongoing Cost AMI Premium on Growth Meters)
Closing Balance
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
15
15
6.67%
Capital Revenue Requirement
6,000,000
4,000,000
2,000,000
0
1
-2,000,000
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Capital Revenue Requirement
Return
Depreciation
Total
s
s
1,196,776
31,948,094
0
-252,525
0
32,892,346
17,044,561
32,892,346
15,973,911
0
-257,828
0
48,608,429
40,750,387
48,608,429
0
0
-263,243
0
48,345,186
48,476,807
48,345,186
0
0
-268,771
0
48,076,415
48,210,801
48,076,415
0
0
-274,415
0
47,802,001
47,939,208
47,802,001
0
0
-280,178
0
47,521,823
47,661,912
47,521,823
0
0
-286,061
0
47,235,762
47,378,793
47,235,762
0
0
-292,069
0
46,943,693
47,089,728
46,943,693
0
0
-298,202
0
46,645,491
46,794,592
46,645,491
0
0
-304,464
0
46,341,027
46,493,259
46,341,027
0
0
-310,858
0
46,030,169
46,185,598
46,030,169
0
0
-317,386
0
45,712,783
45,871,476
45,712,783
0
0
-324,051
0
45,388,732
45,550,758
45,388,732
0
0
-330,856
0
45,057,876
45,223,304
45,057,876
0
-1,320,442
-337,804
123,666
43,523,295
44,290,586
43,523,295
0
-31,948,094
-344,898
252,525
11,482,828
27,503,062
11,482,828
0
-15,973,911
-352,141
257,828
-4,585,396
3,448,716
-4,585,396
0
0
-359,536
263,243
-4,681,689
-4,633,542
-4,681,689
0
0
-367,086
268,771
-4,780,004
-4,730,847
0
0
0
0
0
0
-39,893
0
-39,893
-19,946
-39,893
-1,136,304
0
-1,176,197
-608,045
-1,176,197
-2,716,692
0
-3,892,889
-2,534,543
-3,892,889
-3,231,787
0
-7,124,676
-5,508,783
-7,124,676
-3,214,053
0
-10,338,730
-8,731,703
-10,338,730
-3,195,947
0
-13,534,677
-11,936,703
-13,534,677
-3,177,461
0
-16,712,138
-15,123,407
-16,712,138
-3,158,586
0
-19,870,724
-18,291,431
-19,870,724
-3,139,315
0
-23,010,039
-21,440,381
-23,010,039
-3,119,639
0
-26,129,678
-24,569,859
-26,129,678
-3,099,551
0
-29,229,229
-27,679,454
-29,229,229
-3,079,040
0
-32,308,269
-30,768,749
-32,308,269
-3,058,098
0
-35,366,367
-33,837,318
-35,366,367
-3,036,717
0
-38,403,085
-36,884,726
-38,403,085
-3,014,887
0
-41,417,971
-39,910,528
-41,417,971
-2,952,706
1,196,776
-43,173,901
-42,295,936
-43,173,901
-1,833,537
31,695,569
-13,311,869
-28,242,885
-13,311,869
-229,914
15,716,083
2,174,300
-5,568,785
2,174,300
308,903
-263,243
2,219,960
2,197,130
2,219,960
315,390
-268,771
2,266,579
2,243,269
0
0
0
0
1,156,884
578,442
1,156,884
31,716,149
16,436,516
31,716,149
44,715,540
38,215,844
44,715,540
41,220,510
42,968,025
41,220,510
37,737,686
39,479,098
37,737,686
34,267,324
36,002,505
34,267,324
30,809,686
32,538,505
30,809,686
27,365,038
29,087,362
27,365,038
23,933,654
25,649,346
23,933,654
20,515,813
22,224,734
20,515,813
17,111,798
18,813,806
17,111,798
13,721,900
15,416,849
13,721,900
10,346,416
12,034,158
10,346,416
6,985,648
8,666,032
6,985,648
3,639,905
5,312,776
3,639,905
349,395
1,994,650
349,395
-1,829,041
-739,823
-1,829,041
-2,411,096
-2,120,068
-2,411,096
-2,461,729
-2,436,413
-2,461,729
-2,513,425
-2,487,577
17
18
19
20
21
0
0
0
40,433
39,893
80,326
1,148,912
1,136,304
2,285,217
2,671,288
2,716,692
5,387,980
3,003,465
3,231,787
6,235,252
2,759,589
3,214,053
5,973,642
2,516,575
3,195,947
5,712,522
2,274,441
3,177,461
5,451,902
2,033,207
3,158,586
5,191,793
1,792,889
3,139,315
4,932,204
1,553,509
3,119,639
4,673,148
1,315,085
3,099,551
4,414,636
1,077,638
3,079,040
4,156,678
841,188
3,058,098
3,899,286
605,756
3,036,717
3,642,473
371,363
3,014,887
3,386,250
139,426
2,952,706
3,092,132
-51,714
1,833,537
1,781,824
-148,193
229,914
81,722
-170,305
-308,903
-479,208
-173,882
-315,390
-489,271
0
0
0
0
0
0
0
0
1,592,417
0
0
0
1,592,417
796,208
1,592,417
0
0
34,411
0
1,626,827
1,609,622
1,626,827
0
0
36,152
0
1,662,979
1,644,903
1,662,979
0
0
37,982
0
1,700,961
1,681,970
1,700,961
0
0
39,904
0
1,740,865
1,720,913
1,740,865
0
0
41,923
0
1,782,788
1,761,827
1,782,788
0
0
44,045
0
1,826,833
1,804,811
1,826,833
0
0
46,274
0
1,873,107
1,849,970
1,873,107
0
0
48,616
0
1,921,723
1,897,415
1,921,723
0
0
51,076
0
1,972,800
1,947,262
1,972,800
0
0
53,661
0
2,026,461
1,999,630
2,026,461
0
0
56,377
0
2,082,838
2,054,650
2,082,838
0
0
59,230
0
2,142,068
2,112,453
2,142,068
0
0
62,228
0
2,204,296
2,173,182
2,204,296
0
0
65,377
0
2,269,673
2,236,985
2,269,673
0
-1,592,417
68,686
0
745,942
1,507,808
745,942
0
0
72,162
-34,411
783,694
764,818
783,694
0
0
75,814
-36,152
823,356
803,525
823,356
0
0
79,651
-37,982
865,025
844,190
865,025
0
0
83,682
-39,904
908,803
886,914
0
0
0
0
0
0
-53,081
0
-53,081
-26,540
-53,081
-107,308
0
-160,389
-106,735
-160,389
-109,660
0
-270,049
-215,219
-270,049
-112,131
0
-382,180
-326,115
-382,180
-114,728
0
-496,908
-439,544
-496,908
-117,455
0
-614,363
-555,635
-614,363
-120,321
0
-734,684
-674,523
-734,684
-123,331
0
-858,015
-796,349
-858,015
-126,494
0
-984,509
-921,262
-984,509
-129,817
0
-1,114,327
-1,049,418
-1,114,327
-133,309
0
-1,247,635
-1,180,981
-1,247,635
-136,977
0
-1,384,612
-1,316,124
-1,384,612
-140,830
0
-1,525,442
-1,455,027
-1,525,442
-144,879
0
-1,670,321
-1,597,882
-1,670,321
-149,132
0
-1,819,453
-1,744,887
-1,819,453
-100,521
1,592,417
-327,557
-1,073,505
-327,557
-50,988
34,411
-344,135
-335,846
-344,135
-53,568
36,152
-361,551
-352,843
-361,551
-56,279
37,982
-379,849
-370,700
-379,849
-59,128
39,904
-399,072
-389,460
0
0
0
0
1,539,336
769,668
1,539,336
1,466,439
1,502,887
1,466,439
1,392,930
1,429,685
1,392,930
1,318,781
1,355,856
1,318,781
1,243,957
1,281,369
1,243,957
1,168,425
1,206,191
1,168,425
1,092,150
1,130,287
1,092,150
1,015,092
1,053,621
1,015,092
937,214
976,153
937,214
858,473
897,844
858,473
778,826
818,649
778,826
698,226
738,526
698,226
616,626
657,426
616,626
533,975
575,301
533,975
450,220
492,098
450,220
418,385
434,303
418,385
439,559
428,972
439,559
461,805
450,682
461,805
485,176
473,491
485,176
509,731
497,454
0
0
0
53,800
53,081
106,880
105,052
107,308
212,360
99,935
109,660
209,595
94,774
112,131
206,906
89,568
114,728
204,295
84,313
117,455
201,768
79,007
120,321
199,328
73,648
123,331
196,979
68,233
126,494
194,727
62,759
129,817
192,577
57,224
133,309
190,532
51,623
136,977
188,600
45,954
140,830
186,784
40,214
144,879
185,092
34,398
149,132
183,530
30,358
100,521
130,878
29,985
50,988
80,973
31,503
53,568
85,071
33,097
56,279
89,376
34,772
59,128
93,900
0
0
0
0
0
0
477,000
0
477,000
238,500
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
0
477,000
477,000
477,000
0
-477,000
0
238,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-23,850
0
-23,850
-11,925
-23,850
-47,700
0
-71,550
-47,700
-71,550
-47,700
0
-119,250
-95,400
-119,250
-47,700
0
-166,950
-143,100
-166,950
-47,700
0
-214,650
-190,800
-214,650
-47,700
0
-262,350
-238,500
-262,350
-47,700
0
-310,050
-286,200
-310,050
-47,700
0
-357,750
-333,900
-357,750
-47,700
0
-405,450
-381,600
-405,450
-47,700
0
-453,150
-429,300
-453,150
-23,850
477,000
0
-226,575
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
453,150
226,575
453,150
405,450
429,300
405,450
357,750
381,600
357,750
310,050
333,900
310,050
262,350
286,200
262,350
214,650
238,500
214,650
166,950
190,800
166,950
119,250
143,100
119,250
71,550
95,400
71,550
23,850
47,700
23,850
0
11,925
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15,838
23,850
39,688
30,008
47,700
77,708
26,674
47,700
74,374
23,340
47,700
71,040
20,005
47,700
67,705
16,671
47,700
64,371
13,337
47,700
61,037
10,003
47,700
57,703
6,668
47,700
54,368
3,334
47,700
51,034
834
23,850
24,684
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Fixed Network (Initial Capital + Installation) + Fixed Network (Ongoing Cost)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Fixed Network Initial Capital + Installation)
Retirements (Fixed Network Initial Capital + Installation)
Capital Additions (incl. OH) (Ongoing Cost Fixed Network)
Retirements (Ongoing Cost Fixed Network)
Closing Balance - Asset
Mid-Year Asset Balance
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
15
15
6.67%
Capital Revenue Requirement
250,000
200,000
150,000
100,000
50,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Capital Revenue Requirement
Return
Depreciation
Total
s
16
6.99%
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
3
0
1,320,442
0
-123,666
0
1,196,776
598,388
8,000,000
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
2
0
0
0
0
0
0
0
19
20
21
6.99%
NCC System (Software)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Software NCC )
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
10
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
February 28, 2014
10.00%
Capital Revenue Requirement
100,000
80,000
60,000
40,000
20,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.99%
Appendix A-19 Attachment 4.xls
Rev Req
Page 3 of 10
EPCOR Distribution & Transmission Inc.
4
s
2014-2015 PBR Capital Tracker
NCC System (Hardware)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Hardware NCC)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
4
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
25.00%
Capital Revenue Requirement
s
500,000
400,000
300,000
200,000
100,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
21
10.00%
1,728,885
0
0
1,728,885
1,728,885
1,728,885
0
0
1,728,885
1,728,885
1,728,885
0
-1,728,885
0
864,443
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-216,111
0
-216,111
-108,055
-216,111
-432,221
0
-648,332
-432,221
-648,332
-432,221
0
-1,080,553
-864,443
-1,080,553
-432,221
0
-1,512,775
-1,296,664
-1,512,775
-216,111
1,728,885
0
-756,387
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,512,775
756,387
1,512,775
1,080,553
1,296,664
1,080,553
648,332
864,443
648,332
216,111
432,221
216,111
0
108,055
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
52,871
216,111
268,982
90,637
432,221
522,858
60,425
432,221
492,646
30,212
432,221
462,434
7,553
216,111
223,664
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,177,833
0
3,177,833
1,588,917
3,177,833
1,015,811
0
4,193,644
3,685,739
4,193,644
621,467
0
4,815,111
4,504,378
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
0
4,815,111
4,815,111
4,815,111
0
-3,177,833
1,637,278
3,226,195
1,637,278
0
-1,015,811
621,467
1,129,373
621,467
0
-621,467
0
310,734
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-158,892
0
-158,892
-79,446
-158,892
-368,574
0
-527,466
-343,179
-527,466
-450,438
0
-977,903
-752,684
-977,903
-481,511
0
-1,459,414
-1,218,659
-1,459,414
-481,511
0
-1,940,926
-1,700,170
-1,940,926
-481,511
0
-2,422,437
-2,181,681
-2,422,437
-481,511
0
-2,903,948
-2,663,192
-2,903,948
-481,511
0
-3,385,459
-3,144,703
-3,385,459
-481,511
0
-3,866,970
-3,626,215
-3,866,970
-481,511
0
-4,348,481
-4,107,726
-4,348,481
-322,619
3,177,833
-1,493,267
-2,920,874
-1,493,267
-112,937
1,015,811
-590,394
-1,041,831
-590,394
-31,073
621,467
0
-295,197
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Capital Revenue Requirement
0
0
0
0
3,018,942
1,509,471
3,018,942
3,666,179
3,342,560
3,666,179
3,837,208
3,751,693
3,837,208
3,355,697
3,596,453
3,355,697
2,874,186
3,114,941
2,874,186
2,392,675
2,633,430
2,392,675
1,911,164
2,151,919
1,911,164
1,429,652
1,670,408
1,429,652
948,141
1,188,897
948,141
466,630
707,386
466,630
144,011
305,320
144,011
31,073
87,542
31,073
0
15,537
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
105,512
158,892
264,404
233,645
368,574
602,219
262,243
450,438
712,681
251,392
481,511
732,903
217,734
481,511
699,246
184,077
481,511
665,588
150,419
481,511
631,930
116,762
481,511
598,273
83,104
481,511
564,615
49,446
481,511
530,957
21,342
322,619
343,961
6,119
112,937
119,056
1,086
31,073
32,159
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,610,564
0
1,610,564
805,282
1,610,564
953,618
0
2,564,182
2,087,373
2,564,182
953,618
0
3,517,801
3,040,992
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
0
3,517,801
3,517,801
3,517,801
0
-1,610,564
1,907,237
2,712,519
1,907,237
0
-953,618
953,618
1,430,428
953,618
0
-953,618
0
476,809
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-53,685
0
-53,685
-26,843
-53,685
-139,158
0
-192,844
-123,265
-192,844
-202,733
0
-395,576
-294,210
-395,576
-234,520
0
-630,097
-512,836
-630,097
-234,520
0
-864,617
-747,357
-864,617
-234,520
0
-1,099,137
-981,877
-1,099,137
-234,520
0
-1,333,657
-1,216,397
-1,333,657
-234,520
0
-1,568,177
-1,450,917
-1,568,177
-234,520
0
-1,802,697
-1,685,437
-1,802,697
-234,520
0
-2,037,217
-1,919,957
-2,037,217
-234,520
0
-2,271,737
-2,154,477
-2,271,737
-234,520
0
-2,506,257
-2,388,997
-2,506,257
-234,520
0
-2,740,777
-2,623,517
-2,740,777
-234,520
0
-2,975,297
-2,858,037
-2,975,297
-234,520
0
-3,209,817
-3,092,557
-3,209,817
-180,835
1,610,564
-1,780,088
-2,494,952
-1,780,088
-95,362
953,618
-921,831
-1,350,959
-921,831
-31,787
953,618
0
-460,916
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,556,879
778,439
1,556,879
2,371,339
1,964,109
2,371,339
3,122,224
2,746,782
3,122,224
2,887,704
3,004,964
2,887,704
2,653,184
2,770,444
2,653,184
2,418,664
2,535,924
2,418,664
2,184,144
2,301,404
2,184,144
1,949,624
2,066,884
1,949,624
1,715,104
1,832,364
1,715,104
1,480,584
1,597,844
1,480,584
1,246,064
1,363,324
1,246,064
1,011,544
1,128,804
1,011,544
777,024
894,284
777,024
542,504
659,764
542,504
307,984
425,244
307,984
127,149
217,566
127,149
31,787
79,468
31,787
0
15,894
0
0
0
0
0
0
0
0
0
54,413
53,685
108,098
137,291
139,158
276,449
192,000
202,733
394,733
210,047
234,520
444,567
193,654
234,520
428,174
177,261
234,520
411,781
160,868
234,520
395,388
144,475
234,520
378,995
128,082
234,520
362,602
111,689
234,520
346,209
95,296
234,520
329,816
78,903
234,520
313,423
62,510
234,520
297,030
46,117
234,520
280,638
29,725
234,520
264,245
15,208
180,835
196,042
5,555
95,362
100,917
1,111
31,787
32,898
0
0
0
0
0
0
0
0
0
0
0
0
228,637
0
228,637
114,318
228,637
235,267
0
463,904
346,270
463,904
242,090
0
705,994
584,949
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
0
705,994
705,994
705,994
0
-228,637
477,357
591,675
477,357
0
-235,267
242,090
359,723
242,090
0
-242,090
0
121,045
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-7,621
0
-7,621
-3,811
-7,621
-23,085
0
-30,706
-19,164
-30,706
-38,997
0
-69,702
-50,204
-69,702
-47,066
0
-116,769
-93,236
-116,769
-47,066
0
-163,835
-140,302
-163,835
-47,066
0
-210,901
-187,368
-210,901
-47,066
0
-257,968
-234,434
-257,968
-47,066
0
-305,034
-281,501
-305,034
-47,066
0
-352,100
-328,567
-352,100
-47,066
0
-399,166
-375,633
-399,166
-47,066
0
-446,233
-422,699
-446,233
-47,066
0
-493,299
-469,766
-493,299
-47,066
0
-540,365
-516,832
-540,365
-47,066
0
-587,431
-563,898
-587,431
-47,066
0
-634,498
-610,964
-634,498
-39,445
228,637
-445,306
-539,902
-445,306
-23,982
235,267
-234,020
-339,663
-234,020
-8,070
242,090
0
-117,010
0
0
0
0
0
0
0
0
0
0
0
0
0
0
221,015
110,508
221,015
433,198
327,107
433,198
636,291
534,745
636,291
589,225
612,758
589,225
542,159
565,692
542,159
495,093
518,626
495,093
448,026
471,559
448,026
400,960
424,493
400,960
353,894
377,427
353,894
306,828
330,361
306,828
259,761
283,294
259,761
212,695
236,228
212,695
165,629
189,162
165,629
118,563
142,096
118,563
71,496
95,029
71,496
32,051
51,774
32,051
8,070
20,060
8,070
0
4,035
0
0
0
0
0
0
0
0
0
7,724
7,621
15,346
22,865
23,085
45,949
37,379
38,997
76,375
42,832
47,066
89,898
39,542
47,066
86,608
36,252
47,066
83,318
32,962
47,066
80,028
29,672
47,066
76,738
26,382
47,066
73,448
23,092
47,066
70,158
19,802
47,066
66,869
16,512
47,066
63,579
13,222
47,066
60,289
9,932
47,066
56,999
6,643
47,066
53,709
3,619
39,445
43,064
1,402
23,982
25,384
282
8,070
8,352
0
0
0
0
0
0
800,000
600,000
400,000
200,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.99%
Project Integration (Vendor Costs)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
15
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
6.67%
Capital Revenue Requirement
500,000
400,000
300,000
200,000
100,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Capital Revenue Requirement
Return
Depreciation
Total
s
20
10
Capital Revenue Requirement
Return
Depreciation
Total
7
1,728,885
0
0
1,728,885
1,728,885
Project Integration (EDTI Costs)
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
s
19
6.99%
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
6
0
1,728,885
0
1,728,885
864,443
600,000
Capital Revenue Requirement
Return
Depreciation
Total
5
0
0
0
0
0
19
20
21
6.99%
Project Integration (Customer Awareness Program)
Capital Asset
Opening Balance
Capital Additions (incl. OH) (Project Integration)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
15
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
February 28, 2014
6.67%
Capital Revenue Requirement
100,000
80,000
60,000
40,000
20,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.99%
Appendix A-19 Attachment 4.xls
Rev Req
Page 4 of 10
EPCOR Distribution & Transmission Inc.
8
s
Capital Benefits (FC200 Devices, Capital Meter Replacements)
Capital Asset
Opening Balance
Capital Additions (incl. OH)
Retirements
Closing Balance - Asset
Mid-Year Asset Balance
Accumulated Depreciation
Opening Balance
Depreciation
Retirements
Closing Balance
Mid-Year Accumulated Depreciation
Net Book Value
Opening Balance
Closing Balance
Mid-Year Net Book Value
Capital Revenue Requirement
Return
Depreciation
Total
9
0
0
0
0
0
0
-2,308,762
0
-2,308,762
-1,154,381
-2,308,762
-2,278,983
0
-4,587,744
-3,448,253
-4,587,744
-2,346,421
0
-6,934,166
-5,760,955
-6,934,166
-2,222,155
0
-9,156,321
-8,045,243
-9,156,321
-1,829,782
0
-10,986,104
-10,071,212
-10,986,104
-1,925,678
0
-12,911,781
-11,948,943
-12,911,781
-2,027,302
0
-14,939,083
-13,925,432
-14,939,083
-1,435,561
0
-16,374,644
-15,656,864
-16,374,644
-2,117,798
0
-18,492,443
-17,433,544
-18,492,443
-1,283,394
0
-19,775,837
-19,134,140
-19,775,837
-1,357,099
0
-21,132,936
-20,454,387
-21,132,936
-1,648,211
0
-22,781,148
-21,957,042
-22,781,148
-1,646,288
0
-24,427,436
-23,604,292
-24,427,436
-1,641,851
0
-26,069,287
-25,248,361
-26,069,287
-1,888,859
0
-27,958,146
-27,013,716
-27,958,146
-2,004,011
2,308,762
-27,653,395
-27,805,770
-27,653,395
-2,805,968
2,278,983
-28,180,380
-27,916,887
-28,180,380
-1,975,841
2,346,421
-27,809,799
-27,995,090
-27,809,799
-1,683,019
2,222,155
-27,270,663
-27,540,231
-27,270,663
-317,985
1,829,782
-25,758,866
-26,514,765
0
0
0
0
0
0
76,959
0
76,959
38,479
76,959
229,884
0
306,842
191,900
306,842
384,064
0
690,906
498,874
690,906
536,350
0
1,227,255
959,081
1,227,255
671,414
0
1,898,670
1,562,963
1,898,670
796,596
0
2,695,266
2,296,968
2,695,266
928,362
0
3,623,628
3,159,447
3,623,628
1,043,791
0
4,667,419
4,145,523
4,667,419
1,162,236
0
5,829,655
5,248,537
5,829,655
1,275,609
0
7,105,264
6,467,460
7,105,264
1,363,626
0
8,468,890
7,787,077
8,468,890
1,463,803
0
9,932,693
9,200,792
9,932,693
1,573,619
0
11,506,312
10,719,503
11,506,312
1,683,224
0
13,189,537
12,347,925
13,189,537
1,800,914
0
14,990,451
14,089,994
14,990,451
1,853,718
-2,308,762
14,535,407
14,762,929
14,535,407
1,861,126
-2,278,983
14,117,551
14,326,479
14,117,551
1,866,339
-2,346,421
13,637,468
13,877,509
13,637,468
1,836,015
-2,222,155
13,251,328
13,444,398
13,251,328
1,767,651
-1,829,782
13,189,197
13,220,263
0
0
0
0
-2,231,803
-1,115,901
-2,231,803
-4,280,902
-3,256,352
-4,280,902
-6,243,260
-5,262,081
-6,243,260
-7,929,066
-7,086,163
-7,929,066
-9,087,434
-8,508,250
-9,087,434
-10,216,516
-9,651,975
-10,216,516
-11,315,455
-10,765,985
-11,315,455
-11,707,226
-11,511,340
-11,707,226
-12,662,788
-12,185,007
-12,662,788
-12,670,572
-12,666,680
-12,670,572
-12,664,046
-12,667,309
-12,664,046
-12,848,455
-12,756,250
-12,848,455
-12,921,123
-12,884,789
-12,921,123
-12,879,750
-12,900,437
-12,879,750
-12,967,695
-12,923,723
-12,967,695
-13,117,988
-13,042,841
-13,117,988
-14,062,829
-13,590,408
-14,062,829
-14,172,331
-14,117,580
-14,172,331
-14,019,335
-14,095,833
-14,019,335
-12,569,669
-13,294,502
6.99%
0
0
0
-78,002
-76,959
-154,960
-227,619
-229,884
-457,503
-367,819
-384,064
-751,883
-495,323
-536,350
-1,031,672
-594,727
-671,414
-1,266,141
-674,673
-796,596
-1,471,269
-752,542
-928,362
-1,680,905
-804,643
-1,043,791
-1,848,434
-851,732
-1,162,236
-2,013,968
-885,401
-1,275,609
-2,161,010
-885,445
-1,363,626
-2,249,071
-891,662
-1,463,803
-2,355,465
-900,647
-1,573,619
-2,474,266
-901,741
-1,683,224
-2,584,965
-903,368
-1,800,914
-2,704,283
-911,695
-1,853,718
-2,765,413
-949,970
-1,861,126
-2,811,095
-986,819
-1,866,339
-2,853,158
-985,299
-1,836,015
-2,821,314
-929,286
-1,767,651
-2,696,937
100%
100%
0
0
0
-331,765
1,671,673
1,339,908
-945,512
3,601,496
2,655,984
-1,351,685
6,164,282
4,812,597
-1,112,684
7,785,005
6,672,321
-1,144,952
7,081,437
5,936,485
-1,178,155
7,247,818
6,069,663
-1,212,322
7,623,923
6,411,601
-1,247,479
7,115,523
5,868,044
-1,283,656
7,573,049
6,289,393
-1,320,882
7,501,123
6,180,241
-1,359,188
7,287,553
5,928,365
-1,398,604
9,413,474
8,014,870
-1,439,163
10,149,430
8,710,267
-1,480,899
10,063,708
8,582,809
-1,523,845
9,867,658
8,343,813
-1,568,037
9,636,413
8,068,376
-1,613,510
10,765,515
9,152,005
-1,660,302
9,898,845
8,238,544
-1,708,450
9,799,643
8,091,192
-1,757,995
9,587,644
7,829,648
0
0
0
0
252,590
476,173
1,339,908
-611,145
1,540,791
2,024,467
2,655,984
909,274
2,982,123
3,614,378
4,812,597
1,783,904
3,160,739
4,050,588
6,672,321
539,006
2,732,919
3,684,275
5,936,485
480,709
2,340,476
3,327,604
6,069,663
-401,584
1,958,492
3,180,217
6,411,601
-1,272,892
1,603,123
3,048,924
5,868,044
-1,215,996
1,253,627
2,914,371
6,289,393
-2,121,395
918,429
2,784,645
6,180,241
-2,477,167
624,138
2,497,289
5,928,365
-2,806,938
339,134
2,146,737
8,014,870
-5,528,999
63,314
1,937,969
8,710,267
-6,708,984
-199,721
1,779,958
8,582,809
-7,002,572
-461,240
1,644,691
8,343,813
-7,160,362
-723,084
1,419,788
8,068,376
-7,371,672
-964,741
142,743
9,152,005
-9,974,003
-1,102,116
-1,543,000
8,238,544
-10,883,659
-1,122,507
-2,088,639
8,091,192
-11,302,338
-1,068,395
-2,023,913
7,829,648
-10,921,957
-7,703,351
-6,942,442
-760,909
-31,655,693
-31,655,693
0
-15,222,989
-15,222,989
0
2,447,416
2,447,416
0
2,058,649
2,058,649
0
2,158,169
2,158,169
0
2,263,434
2,263,434
0
1,675,348
1,675,348
0
2,361,251
2,361,251
0
1,530,520
1,530,520
0
1,607,902
1,607,902
0
1,902,692
1,902,692
0
1,904,444
1,904,444
0
1,903,674
1,903,674
0
2,154,338
2,154,338
0
2,273,129
2,273,129
0
3,078,704
3,078,704
0
2,252,168
2,252,168
0
1,962,904
1,962,904
0
601,390
601,390
0
15
6.67%
Capital Revenue Requirement
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
-1,000,000
-2,000,000
-3,000,000
AMI EDTI Operating Cost / Benefits
EDTI Operating Costs
EDTI Operating Benefits
Total AMI EDTI Operating Cost / Benefits
10
2014-2015 PBR Capital Tracker
Incremental Revenue Requirement - AMI
Return
Depreciation
AMI Incremental Operating Cost / Benefits
Net Impact on Revenue Requirement
NPV
Check capital
CF capital
Difference
-28,495,969
0
-760,909
760,909
Cap. Cost Sensitivity % Ref.
Cap. Ben. Sensitivity % Ref.
February 28, 2014
100%
100%
Appendix A-19 Attachment 4.xls
Rev Req
Page 5 of 10
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 4 (AMR Fixed Network)
Worksheet: EDTI Capital
● 'DCF' dentoes the row is referenced in the Discounted Cash Flow Worksheet
Year
Capital Escalation Rate (%)
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
EDTI CAPITAL COSTS
AMI METER DEPLOYMENT FORECAST (INITIAL PROJECT)
Single Phase Meters
Network Meters
Polyphase Meters
Demand Meters
Total (end of year)
Meter Population - Pre Installation
299,482
41,407
20,391
621
361,901
304,695.41
42,127.82
20,745.97
631.81
368,201
Single Phase Meters
Network Meters
Polyphase Meters
Demand Meters
Total (end of year)
Meters (incl. 1/2 of 2015 Growth) - Installation Contract
Phase 1
Contract Total
6,000
308,604
4,000
42,668
21,012
640
10,000
372,924
Phase 2
0
201,736
100,868
302,604
0
25,779
12,889
38,668
0
14,008
7,004
21,012
0
427
213
640
10,000
241,950
120,974
372,924
AMI SYSTEMS (INITIAL PROJECT)
DCF Fixed Network - Initial Capital Cost
DCF Fixed Network - Installation Capital Cost
-1,215,520
-286,760
DCF Hardware - Network Control System
DCF Software - Network Control System
-450,000
-1,631,024
METERS (INITIAL PROJECT)
DCF Meters
DCF Meters - Installation
-940,000
-305,700
-22,743,300
-7,396,412
-11,371,553
-3,698,174
-717,839
-2,280,117
-1,519,400
-215,695
-4,015,212
-958,312
-899,640
-221,950
-2,079,902
-586,290
-899,640
-228,387
-1,714,317
-717,839
-8,844,216
-32,219,614
-16,784,044
-4.03
7,670
0%
0
-4.15
7,831
100%
-32,463
-4.27
7,996
100%
-34,106
-4.39
8,164
100%
-35,832
-4.52
8,335
100%
-37,645
-4.65
8,510
100%
-39,550
-4.78
8,689
100%
-41,552
-4.92
8,871
100%
-43,655
-5.06
9,058
100%
-45,864
-5.21
9,248
100%
-48,185
-5.36
9,442
100%
-50,624
-5.52
9,640
100%
-53,186
-5.68
9,843
100%
-55,878
-5.84
10,050
100%
-58,706
-6.01
10,261
100%
-61,677
-6.19
10,476
100%
-64,798
-6.36
10,696
100%
-68,077
-6.55
10,921
100%
-71,523
-6.74
11,150
100%
-75,142
-6.93
11,384
100%
-78,945
7,670
7,831
7,996
8,164
8,335
8,510
8,689
8,871
9,058
9,248
9,442
9,640
9,843
10,050
10,261
10,476
10,696
10,921
11,150
11,384
30.42
50%
116,666
30.42
100%
238,231
30.42
100%
243,234
30.42
100%
248,342
30.42
100%
253,557
30.42
100%
258,882
30.42
100%
264,318
30.42
100%
269,869
30.42
100%
275,536
30.42
100%
281,323
30.42
100%
287,230
30.42
100%
293,262
30.42
100%
299,421
30.42
100%
305,709
30.42
100%
312,128
30.42
100%
318,683
30.42
100%
325,375
30.42
100%
332,208
30.42
100%
339,185
30.42
100%
346,308
5,660
5,824
5,993
6,166
6,345
6,529
6,718
6,913
7,114
7,320
7,532
7,751
7,976
8,207
8,445
8,690
8,942
9,201
9,468
9,742
10,025
68
0.00
0.00
0
0
0.18
0.18
55
321,586
0.18
0.36
0
0
0.18
0.54
0
0
0.19
0.73
0
0
0.19
0.92
0
0
0.20
1.12
0
0
0.20
1.32
0
0
0.20
1.52
0
0
0.21
1.73
87
638,048
0.21
1.94
0
0
0.22
2.16
0
0
0.22
2.38
0
0
0.23
2.61
0
0
0.23
2.84
0
0
0.24
3.08
0
0
0.24
3.32
0
0
0.25
3.57
89
823,115
0.25
3.82
0
0
0.26
4.08
0
0
0.26
4.34
0
0
13,194
1,982
0
0
1,255,135
16,912
0
0
0
1,288,187
9,432
4,265
861
0
1,460,606
17,261
290
0
0
1,351,371
15,801
1,624
114
0
1,435,522
13,613
2,767
260
184
1,566,239
13,464
2,288
711
161
1,586,414
15,030
264
211
29
1,246,803
14,687
0
0
176
1,232,100
14,188
0
0
0
1,080,700
13,327
996
0
0
1,140,823
15,886
0
0
0
1,210,037
15,732
0
0
0
1,198,306
12,145
1,899
0
0
1,164,757
15,305
1,420
538
191
1,595,454
11,924
2,878
195
618
1,715,818
11,870
2,754
390
391
1,595,982
12,915
2,571
452
473
1,719,995
9,263
1,579
-731
829
1,265,847
9,271
2,529
-843
-1,000
181,465
5,675
60%
259,359
1,300
50%
82,037
560
60%
79,565
400
70%
180,396
601,356
4,510
60%
206,116
765
50%
48,275
720
60%
102,298
1,120
70%
505,108
861,797
3,845
50%
146,437
2,225
40%
112,327
1,040
50%
123,136
960
60%
371,100
752,999
3,745
45%
128,365
1,120
35%
49,474
800
45%
85,248
1,360
55%
481,914
745,002
3,360
40%
102,372
650
30%
24,611
640
40%
60,621
320
50%
103,083
290,687
2,765
35%
73,714
1,085
25%
34,234
320
35%
26,522
400
45%
115,969
250,438
3,290
35%
87,710
1,675
25%
52,850
560
35%
46,413
480
45%
139,162
326,135
1,640
30%
37,476
240
20%
6,058
320
30%
22,733
160
40%
41,233
107,500
780
25%
14,853
525
20%
13,252
160
25%
9,472
400
35%
90,198
127,775
1,865
20%
28,411
605
20%
15,271
240
25%
14,208
320
35%
72,158
130,049
4,265
15%
48,730
775
15%
14,672
240
25%
14,208
320
30%
61,850
139,460
3,470
15%
39,646
1,370
15%
25,936
800
25%
47,360
1,200
30%
231,937
344,880
4,050
15%
46,273
1,610
15%
30,480
1,040
25%
61,568
1,120
30%
216,475
354,796
2,715
15%
31,020
1,200
15%
22,718
880
25%
52,096
1,440
30%
278,325
384,159
2,980
15%
34,048
650
15%
12,305
800
25%
47,360
480
30%
92,775
186,488
1,560
15%
17,824
1,005
15%
19,026
240
25%
14,208
640
30%
123,700
174,758
3,870
15%
44,217
1,675
15%
31,710
480
25%
28,416
640
30%
123,700
228,043
5,210
15%
59,527
695
15%
13,157
160
25%
9,472
320
30%
61,850
144,006
3,550
15%
40,561
925
15%
17,512
800
25%
47,360
1,120
30%
216,475
321,907
2,265
15%
25,879
1,325
15%
25,084
880
25%
52,096
80
30%
15,462
118,521
100%
1,856,491
100%
2,149,984
100%
2,213,605
100%
2,096,373
100%
1,726,210
100%
1,816,677
100%
1,912,549
100%
1,354,303
100%
1,359,875
100%
1,210,749
100%
1,280,282
100%
1,554,916
100%
1,553,102
100%
1,548,916
100%
1,781,942
100%
1,890,576
100%
1,824,025
100%
1,864,001
100%
1,587,754
100%
299,986
94.00
30.57
OTHER CAPITAL COSTS (INITIAL PROJECT)
Project Integration - EPCOR Resources
Project Integration - AMI Vendor Resources
Customer Awareness Program
DCF Project Integration ($)
-717,839
AMI Deployment (Initial Project) Total ($)
Fixed Network - Growth
Fixed Network Cost ($ per Meter)
Annual Increase in Meters
Realization Factor (%)
DCF Fixed Network - Growth Capital Cost
Incremental AMI Premium - Growth Meters Cost
New Power Meters Forecast
from Operating worksheet
AMI Meter Cost Premium ($ per Meter)
AMI minus AMR
AMI Meter Premium ($ per Meter)
$94.00 - $63.58
Realization Factor (%)
DCF Incremental AMI Premium - Growth
EDTI CAPITAL BENEFITS
Replacement of FC200 Handheld Devices
Cost ($ per Device)
Escalated Cost ($ per Device)
5,500
Estimated Meter Readers (start of 2014)
Meter Reader FTE Increase Due to Growth
from Ops. Worksheet
Cumulative Meter Reader FTE Increase
2014 onward
Large-Scale Major Device Replacement
4:1 spare
DCF Capital Benefit of Not Having to Replace FC200 Devices
Meter Capital Replacements
2014F
Gov Meter Replacements - Meter Quantity (Status Quo - AMI)
Single Phase Meters
$76.17
Network Meters
$126.21
Polyphase Meters
$236.80
Demand Meters
$644.27
Meter Replacements Cost
Compliance Sampling Meter Replacements
Single Phase Meters
Replacement %
Replacement - Capital Cost
Network Meters
Replacement %
Replacement - Capital Cost
Polyphase Meters
Replacement %
Replacement - Capital Cost
Demand Meters
Replacement %
Replacement - Capital Cost
Compliance Sampling Meter Replacement Cost
Realization Factors (%)
DCF Capital Benefit of Meter Replacement Reduction
February 28, 2014
$76.17
$126.21
$236.80
$644.27
0%
0
Appendix A-19 Attachment 4.xls
EDTI Capital
Page 6 of 10
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Project: Meter Reading Automation
Appendix A-19 Attachment 4 (AMR Fixed Network)
Worksheet: EDTI Operating
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Operating Escalation Rate (%)
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
-111,287
-80,382
-113,270
-124,012
-114,514
-82,713
-116,555
-127,608
-117,835
-85,112
-119,935
-131,309
1.0
-121,252
-87,580
-123,413
-135,117
2.0
3.0
-128,387
-92,733
-130,675
-143,067
3.0
-132,110
-95,423
-134,464
-147,216
3.0
-135,942
-98,190
-138,364
-151,486
3.0
-139,884
-101,037
-142,376
-155,879
3.0
-143,940
-103,967
-146,505
-160,399
3.0
-148,115
-106,982
-150,754
-165,051
3.0
-152,410
-110,085
-155,126
-169,837
3.0
-156,830
-113,277
-159,624
-174,762
3.0
-161,378
-116,562
-164,254
-179,831
3.0
-166,058
-119,943
-169,017
-185,046
3.0
-170,874
-123,421
-173,918
-190,412
3.0
-175,829
-127,000
-178,962
-195,934
3.0
-180,928
-130,683
-184,152
-201,616
3.0
-186,175
-134,473
-189,492
-207,463
3.0
-191,574
-138,373
-194,988
-213,479
3.0
-197,130
-142,386
-200,642
-219,670
3.0
-202,846
-146,515
-206,461
-226,041
3.0
0.3
-150,662
0.5
-572,803
-124,769
-90,120
-126,992
-139,035
3.0
3.0
2.0
0.5
-968,167
2.0
0.5
-718,044
2.0
0.5
-738,868
2.0
0.5
-760,295
2.0
0.5
-782,343
2.0
0.5
-805,031
2.0
0.5
-828,377
2.0
0.5
-852,400
2.0
0.5
-877,120
2.0
0.5
-902,556
2.0
0.5
-928,731
2.0
0.5
-955,664
2.0
0.5
-983,378
2.0
0.5
-1,011,896
2.0
0.5
-1,041,241
2.0
0.5
-1,071,437
2.0
0.5
-1,102,509
2.0
0.5
-1,134,481
-326,205
50%
-163,102
-335,665
100%
-335,665
-345,399
100%
-345,399
-355,416
100%
-355,416
-365,723
100%
-365,723
-376,329
100%
-376,329
-387,242
100%
-387,242
-398,472
100%
-398,472
-410,028
100%
-410,028
-421,919
100%
-421,919
-434,154
100%
-434,154
-446,745
100%
-446,745
-459,700
100%
-459,700
-473,032
100%
-473,032
-486,750
100%
-486,750
-500,865
100%
-500,865
-515,390
100%
-515,390
-530,337
100%
-530,337
-545,717
100%
-545,717
-561,542
100%
-561,542
-36,000
50%
-18,000
-37,044
100%
-37,044
-38,118
100%
-38,118
-39,224
100%
-39,224
-40,361
100%
-40,361
-41,532
100%
-41,532
-42,736
100%
-42,736
-43,975
100%
-43,975
-45,251
100%
-45,251
-46,563
100%
-46,563
-47,913
100%
-47,913
-49,303
100%
-49,303
-50,733
100%
-50,733
-52,204
100%
-52,204
-53,718
100%
-53,718
-55,276
100%
-55,276
-56,879
100%
-56,879
-58,528
100%
-58,528
-60,225
100%
-60,225
-61,972
100%
-61,972
EDTI OPERATING COSTS
AMI Load Center/MDM Operations Cost
Salary & Benefits - AMI Operator
Salary & Benefits - Transition Support
Salary & Benefits - Field Support
Salary & Benefits - IT Support
FTE Requirements - AMI Operators
FTE Requirements - Transition Support
FTE Requirements - Field Support
FTE Requirements - IT Support
DCF AMI Load Centre/MDM Operations Cost
Software Licence Fees
Software Licence Fees
Realization Factor (%)
DCF Software Licence Fees
T2 position
A3 position
Meter Installer 1 position
IT2 position
20% of License Cost
Wide Area Network (WAN) Fees
Cellular Backhaul Rental
Realization Factor (%)
DCF Total WAN Fees
EDTI OPERATING BENEFITS
METER READING OPERATIONS
●
Meter Reading Operations
Meter Reading Budget
EWSI Payment
Realization Factor (%)
Meter Reading Operations Benefit
●
New Meter Readers (Site Growth)
New Site (Meter) Growth Rate (%)
Power Meter Inventory (Mid Year)
New Power Meters Forecast
Meter Reader Average Read Rate per Year
Meter Reader FTE Increase Due to Growth
Cumulative Meter Reader FTE Increase
New Meter Reader Salary
New Meter Reader Salary Due to Growth
Realization Factor (%)
New Meter Readers (Site Growth) Benefit
●
Meter Reading Validation - Cumulative
Meter Data Management Budget
2013A
EWSI Payment
2013A
Realization Factor (%)
Meter Reading Validation - Cumulative Benefit
●
Meter Reading Validation - Interval
Interval Meter Data Line Costs
Interval Meter Data Line Savings
Realization Factor (%)
Interval Meter Data Line Savings
Meter Technician Salary & Benefits
Meter Tech FTE Reduction
Meter Technican Savings
Meter Reading Validation - Interval Benefit
●
MVRS Support Cost Savings
MVRS Annual Support Costs
Realization Factor (%)
Total MVRS Support Cost Benefit
●
Meter Reading Transition Allowance
●
DCF Total Meter Reading Operations Benefit
February 28, 2014
2013A
2013A
6,214,117
-2,835,423
6,394,326
-2,917,650
6,579,762
-3,002,262
0%
0
6,770,575
-3,089,328
30%
1,104,374
6,966,922
-3,178,918
80%
3,030,403
7,168,962
-3,271,107
100%
3,897,855
7,376,862
-3,365,969
100%
4,010,893
7,590,791
-3,463,582
100%
4,127,209
7,810,924
-3,564,026
100%
4,246,898
8,037,441
-3,667,383
100%
4,370,058
8,270,527
-3,773,737
100%
4,496,790
8,510,372
-3,883,175
100%
4,627,197
8,757,173
-3,995,787
100%
4,761,386
9,011,131
-4,111,665
100%
4,899,466
9,272,454
-4,230,903
100%
5,041,550
9,541,355
-4,353,600
100%
5,187,755
9,818,054
-4,479,854
100%
5,338,200
10,102,778
-4,609,770
100%
5,493,008
10,395,758
-4,743,453
100%
5,652,305
10,697,235
-4,881,013
100%
5,816,222
11,007,455
-5,022,563
100%
5,984,893
11,326,671
-5,168,217
100%
6,158,454
Avg 2011 - 2013
2013A
2.10%
357,741
2013A Reads/FTE/YR
520,755
2.10%
365,254
7,513
520,755
75,032
77,208
2.10%
372,924
7,670
520,755
0.18
0.18
79,447
14,042
100%
14,042
2.10%
380,755
7,831
520,755
0.18
0.36
81,751
29,203
100%
29,203
2.10%
388,751
7,996
520,755
0.18
0.54
84,122
45,549
100%
45,549
2.10%
396,915
8,164
520,755
0.19
0.73
86,561
63,154
100%
63,154
2.10%
405,250
8,335
520,755
0.19
0.92
89,072
82,094
100%
82,094
2.10%
413,760
8,510
520,755
0.20
1.12
91,655
102,448
100%
102,448
2.10%
422,449
8,689
520,755
0.20
1.32
94,313
124,303
100%
124,303
2.10%
431,321
8,871
520,755
0.20
1.52
97,048
147,747
100%
147,747
2.10%
440,379
9,058
520,755
0.21
1.73
99,862
172,875
100%
172,875
2.10%
449,626
9,248
520,755
0.21
1.94
102,758
199,787
100%
199,787
2.10%
459,069
9,442
520,755
0.22
2.16
105,738
228,587
100%
228,587
2.10%
468,709
9,640
520,755
0.22
2.38
108,805
259,387
100%
259,387
2.10%
478,552
9,843
520,755
0.23
2.61
111,960
292,303
100%
292,303
2.10%
488,602
10,050
520,755
0.23
2.84
115,207
327,460
100%
327,460
2.10%
498,862
10,261
520,755
0.24
3.08
118,548
364,985
100%
364,985
2.10%
509,338
10,476
520,755
0.24
3.32
121,986
405,018
100%
405,018
2.10%
520,034
10,696
520,755
0.25
3.57
125,523
447,702
100%
447,702
2.10%
530,955
10,921
520,755
0.25
3.82
129,163
493,189
100%
493,189
2.10%
542,105
11,150
520,755
0.26
4.08
132,909
541,641
100%
541,641
2.10%
553,489
11,384
520,755
0.26
4.34
136,763
593,226
100%
593,226
329,221
-144,504
338,768
-148,695
0%
0
348,593
-153,007
0%
0
358,702
-157,444
30%
60,377
369,104
-162,010
80%
165,676
379,808
-166,708
100%
213,100
390,823
-171,543
100%
219,280
402,157
-176,517
100%
225,639
413,819
-181,636
100%
232,183
425,820
-186,904
100%
238,916
438,169
-192,324
100%
245,845
450,876
-197,901
100%
252,974
463,951
-203,641
100%
260,310
477,405
-209,546
100%
267,859
491,250
-215,623
100%
275,627
505,496
-221,876
100%
283,620
520,156
-228,310
100%
291,845
535,240
-234,931
100%
300,309
550,762
-241,745
100%
309,018
566,734
-248,755
100%
317,979
583,170
-255,969
100%
327,201
600,082
-263,392
100%
336,690
2013A
1,600 of 1,873 meters
748,172
769,869
T2 Position
111,287
114,514
792,195
676,728
0%
0
117,835
1
117,835
117,835
815,169
696,354
30%
208,906
121,252
2
242,505
451,411
838,809
716,548
80%
573,238
124,769
3
374,306
947,545
863,134
737,328
100%
737,328
128,387
3
385,161
1,122,489
888,165
758,710
100%
758,710
132,110
3
396,331
1,155,041
913,922
780,713
100%
780,713
135,942
3
407,825
1,188,537
940,426
803,353
100%
803,353
139,884
3
419,651
1,223,005
967,698
826,651
100%
826,651
143,940
3
431,821
1,258,472
995,761
850,624
100%
850,624
148,115
3
444,344
1,294,968
1,024,638
875,292
100%
875,292
152,410
3
457,230
1,332,522
1,054,353
900,675
100%
900,675
156,830
3
470,490
1,371,165
1,084,929
926,795
100%
926,795
161,378
3
484,134
1,410,929
1,116,392
953,672
100%
953,672
166,058
3
498,174
1,451,846
1,148,767
981,328
100%
981,328
170,874
3
512,621
1,493,949
1,182,082
1,009,787
100%
1,009,787
175,829
3
527,487
1,537,274
1,216,362
1,039,071
100%
1,039,071
180,928
3
542,784
1,581,855
1,251,636
1,069,204
100%
1,069,204
186,175
3
558,525
1,627,728
1,287,934
1,100,210
100%
1,100,210
191,574
3
574,722
1,674,932
1,325,284
1,132,117
100%
1,132,117
197,130
3
591,389
1,723,506
1,363,717
1,164,948
100%
1,164,948
202,846
3
608,539
1,773,487
18,362
18,894
19,442
0%
0
20,006
0%
0
20,586
50%
10,293
21,183
100%
21,183
21,798
100%
21,798
22,430
100%
22,430
23,080
100%
23,080
23,750
100%
23,750
24,438
100%
24,438
25,147
100%
25,147
25,876
100%
25,876
26,627
100%
26,627
27,399
100%
27,399
28,194
100%
28,194
29,011
100%
29,011
29,853
100%
29,853
30,718
100%
30,718
31,609
100%
31,609
32,526
100%
32,526
33,469
100%
33,469
-125,000
-125,000
1,520,365
4,074,465
5,317,782
5,489,106
5,666,264
5,849,469
6,038,943
6,234,916
6,437,627
6,647,325
6,864,268
7,088,726
7,320,978
7,561,316
7,810,042
8,067,472
8,333,932
8,609,765
8,895,326
2015 onward
2013A
2013A
0
131,878
Appendix A-19 Attachment 4.xls
EDTI Operating
Page 7 of 10
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
METER OPERATIONS
Compliance Sampling
Current State - Conventional Metering
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling Cost ($)
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements Cost ($)
Future State - AMI
Compliance Sampling - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Compliance Sampling Cost ($)
Gov Meter Replacements - Meter Quantity
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements - Unit Rates
Single Phase meters
Network meters
Polyphase meters
Demand meters
Gov Meter Replacements Cost ($)
20 year forecast
2011-2013 3 yr average
89.79
87.72
211.91
645.01
Sum of Quantity x Unit Rate
2011-2013 3 yr average
31.33
20.48
14.67
151.37
Sum of Quantity x Unit Rate
3,845
2,225
1,040
960
3,745
1,120
800
1,360
3,360
650
640
320
2,765
1,085
320
400
3,290
1,675
560
480
1,640
240
320
160
780
525
160
400
1,865
605
240
320
4,265
775
240
320
3,470
1,370
800
1,200
4,050
1,610
1,040
1,120
2,715
1,200
880
1,440
2,980
650
800
480
1,560
1,005
240
640
3,870
1,675
480
640
5,210
695
160
320
3,550
925
800
1,120
2,265
1,325
880
80
95.07
92.88
224.38
682.96
1,059,125
97.83
95.58
230.89
702.77
1,467,669
100.67
98.35
237.58
723.15
1,547,197
103.59
101.20
244.47
744.12
1,708,857
106.59
104.13
251.56
765.70
831,856
109.68
107.15
258.86
787.91
817,529
112.86
110.26
266.36
810.75
1,094,331
116.14
113.46
274.09
834.27
438,884
119.50
116.75
282.04
858.46
543,016
122.97
120.13
290.22
883.36
654,345
126.54
123.62
298.63
908.97
998,021
130.21
127.20
307.29
935.33
1,994,314
133.98
130.89
316.20
962.46
2,160,164
137.87
134.69
325.37
990.37
2,248,393
141.86
138.59
334.81
1,019.09
1,269,853
145.98
142.61
344.52
1,048.64
1,124,869
150.21
146.75
354.51
1,079.05
1,687,885
154.57
151.00
364.79
1,110.35
1,323,926
159.05
155.38
375.37
1,142.55
2,288,308
163.66
159.89
386.26
1,175.68
1,016,510
13,194
1,982
1,368
0
16,912
0
0
0
9,432
4,265
861
0
17,261
290
0
0
15,801
1,624
114
0
13,613
2,767
260
184
13,464
2,288
711
161
15,030
264
211
29
14,687
0
0
176
14,188
0
0
0
13,327
996
0
0
15,886
0
0
0
15,732
0
0
0
12,145
1,899
0
0
15,305
1,420
538
191
11,924
2,878
195
618
11,870
2,754
390
391
12,915
2,571
452
473
11,263
1,579
1,269
1,829
12,271
3,529
1,157
0
33.17
21.69
15.53
160.28
501,920
34.14
22.31
15.98
164.92
577,300
35.13
22.96
16.45
169.71
443,393
36.14
23.63
16.92
174.63
630,735
37.19
24.31
17.41
179.69
629,143
38.27
25.02
17.92
184.90
628,885
39.38
25.74
18.44
190.27
632,864
40.52
26.49
18.97
195.78
625,731
41.70
27.26
19.52
201.46
647,874
42.91
28.05
20.09
207.30
608,766
44.15
28.86
20.67
213.32
617,152
45.43
29.70
21.27
219.50
721,730
46.75
30.56
21.89
225.87
735,461
48.11
31.45
22.52
232.42
643,952
49.50
32.36
23.18
239.16
861,696
50.94
33.30
23.85
246.09
859,919
52.41
34.26
24.54
253.23
825,080
53.93
35.26
25.25
260.57
921,849
55.50
36.28
25.99
268.13
1,205,731
57.11
37.33
26.74
275.91
863,424
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500
200
50
0
600
300
100
0
0
0
0
0
1,596
459
161
60
5,703
1,132
643
85
1,426
283
161
60
0
0
0
0
340
220
138
200
0
0
0
0
340
220
138
200
0
0
0
0
2,285
714
516
200
7,381
1,420
1,538
85
2,065
493
516
200
95.07
92.88
224.38
682.96
0
97.83
95.58
230.89
702.77
0
100.67
98.35
237.58
723.15
0
103.59
101.20
244.47
744.12
0
106.59
104.13
251.56
765.70
0
109.68
107.15
258.86
787.91
0
112.86
110.26
266.36
810.75
91,802
116.14
113.46
274.09
834.27
131,128
119.50
116.75
282.04
858.46
0
122.97
120.13
290.22
883.36
351,127
126.54
123.62
298.63
908.97
1,130,851
130.21
127.20
307.29
935.33
327,265
133.98
130.89
316.20
962.46
0
137.87
134.69
325.37
990.37
319,481
141.86
138.59
334.81
1,019.09
0
145.98
142.61
344.52
1,048.64
338,280
150.21
146.75
354.51
1,079.05
0
154.57
151.00
364.79
1,110.35
871,307
159.05
155.38
375.37
1,142.55
2,069,033
163.66
159.89
386.26
1,175.68
851,234
0
0
1,368
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,000
0
2,000
1,000
3,000
1,000
2,000
1,000
32.24
21.07
15.10
155.76
0
33.17
21.69
15.53
160.28
21,249
34.14
22.31
15.98
164.92
0
35.13
22.96
16.45
169.71
0
36.14
23.63
16.92
174.63
0
37.19
24.31
17.41
179.69
0
38.27
25.02
17.92
184.90
0
39.38
25.74
18.44
190.27
0
40.52
26.49
18.97
195.78
0
41.70
27.26
19.52
201.46
0
42.91
28.05
20.09
207.30
0
44.15
28.86
20.67
213.32
0
45.43
29.70
21.27
219.50
0
46.75
30.56
21.89
225.87
0
48.11
31.45
22.52
232.42
0
49.50
32.36
23.18
239.16
0
50.94
33.30
23.85
246.09
0
52.41
34.26
24.54
253.23
0
53.93
35.26
25.25
260.57
0
55.50
36.28
25.99
268.13
431,097
57.11
37.33
26.74
275.91
538,034
0
0
0%
0
1,059,125
480,671
100%
1,539,795
1,467,669
577,300
100%
2,044,969
1,547,197
443,393
100%
1,990,590
1,708,857
630,735
100%
2,339,592
831,856
629,143
100%
1,460,999
817,529
628,885
100%
1,446,414
1,002,530
632,864
100%
1,635,394
307,756
625,731
100%
933,487
543,016
647,874
100%
1,190,890
303,218
608,766
100%
911,984
-132,830
617,152
100%
484,322
1,667,049
721,730
100%
2,388,779
2,160,164
735,461
100%
2,895,625
1,928,912
643,952
100%
2,572,863
1,269,853
861,696
100%
2,131,549
786,589
859,919
100%
1,646,509
1,687,885
825,080
100%
2,512,965
452,619
921,849
100%
1,374,468
219,275
774,634
100%
993,909
165,276
325,390
100%
490,666
1,518,605
1,562,645
1,484,513
0%
0
1,607,962
1,527,564
0%
0
1,654,593
1,571,863
0%
0
1,702,576
1,617,447
0%
0
1,751,950
1,664,353
0%
0
1,802,757
1,712,619
0%
0
1,855,037
1,762,285
0%
0
1,908,833
1,813,391
0%
0
1,964,189
1,865,980
0%
0
2,021,151
1,920,093
0%
0
2,079,764
1,975,776
0%
0
2,140,077
2,033,073
0%
0
2,202,139
2,092,032
0%
0
2,266,001
2,152,701
0%
0
2,331,716
2,215,130
0%
0
2,399,335
2,279,368
0%
0
2,468,916
2,345,470
0%
0
2,540,515
2,413,489
0%
0
2,614,189
2,483,480
0%
0
2,690,001
2,555,501
0%
0
2,768,011
2,629,610
0%
0
129,508
133,264
0%
0
137,128
117,141
0%
0
141,105
120,538
30%
36,161
145,197
124,034
80%
99,227
149,408
127,631
100%
127,631
153,741
131,332
100%
131,332
158,199
135,141
100%
135,141
162,787
139,060
100%
139,060
167,508
143,092
100%
143,092
172,365
147,242
100%
147,242
177,364
151,512
100%
151,512
182,507
155,906
100%
155,906
187,800
160,427
100%
160,427
193,246
165,080
100%
165,080
198,851
169,867
100%
169,867
204,617
174,793
100%
174,793
210,551
179,862
100%
179,862
216,657
185,078
100%
185,078
222,940
190,445
100%
190,445
229,405
195,968
100%
195,968
236,058
201,651
100%
201,651
0
1,539,795
2,081,131
2,089,817
2,467,223
1,592,331
1,581,554
1,774,454
1,076,579
1,338,133
1,063,496
640,228
2,549,206
3,060,705
2,742,730
2,306,343
1,826,371
2,698,043
1,564,913
1,189,877
692,317
89.79
87.72
211.91
645.01
92.39
90.26
218.06
663.72
0
31.33
20.48
14.67
151.37
32.24
21.07
15.10
155.76
0
20 year forecast
Sum of Quantity x Unit Rate
89.79
87.72
211.91
645.01
92.39
90.26
218.06
663.72
0
20 year forecast
Sum of Quantity x Unit Rate
Current State - Future State
Current State - Future State
●
2013A
●
Energize & De-Energize
Energize & De-Energize Cost
Energize & De-Energize Cost (200-A)
Realization Factor (%)
Energize & De-Energize Benefit
2013A
$107,673
$18,185
$125,858
1,600 of 1,873 meters
●
Interval Meter Troubleshooting
Labour Cost
Vehicles Costs Incurred
Total Labour & Vehicles Cost
Replaced Interval Meters
Realization Factor (%)
Interval MeterTroubleshooting Benefit
February 28, 2014
4,510
765
720
1,120
20 year forecast
Compliance Sampling Savings ($)
Gov Meter Replacement Savings ($)
Realization Factor (%)
Total Compliance Sampling Benefit
DCF Total Meter Operations Benefit
5,675
1,300
560
400
1,475,807
95%
31.33
20.48
14.67
151.37
Appendix A-19 Attachment 4.xls
EDTI Operating
3090
1405
880
1280
7552
3567
1765
1266
Page 8 of 10
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● AMI Alternative - Cash Flow Table
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Description
AMI - Capital
Capital Costs
Initial Project - System Costs
Initial Project - Meter Costs
Initial Project - Other Costs
Ongoing Costs
Capital Overhead
Capital Costs
Capital Benefits
Capital Benefits
Capital Overhead
Capital Benefits
NET AMI CAPITAL COSTS
AMI - Operating
EDTI Operating Costs
Load Center/MDM Operations
Annual Software Licence Fees
WAN Fees
EDTI Operating Costs
EDTI Operational Benefits
Meter Reading Operations
Meter Operations
EDTI Operating Benefits
NET AMI OPERATING
AMI - Net Annual Cash Flow
NET ANNUAL CASH FLOW
Discount Rate
Net Present Value
February 28, 2014
A
Calculation
B
2014
C
2015
D
2016
E
2017
F
2018
G
2019
H
2020
I
2021
J
2022
K
2023
L
2024
M
2025
N
2026
O
2027
P
2028
Q
2029
R
2030
S
2031
T
2032
U
2033
V
2034
(0.04)
(0.76)
(3.58)
(1.25)
(4.02)
0.12
(0.52)
(9.25)
(30.14) (15.07)
(2.08) (1.71)
0.21
0.21
(1.92) (0.99)
(33.93) (17.57)
0.21
0.01
0.23
0.22
0.01
0.23
0.22
0.01
0.23
0.22
0.01
0.24
0.23
0.01
0.24
0.23
0.01
0.24
0.23
0.01
0.25
0.24
0.01
0.25
0.24
0.01
0.25
0.24
0.01
0.26
0.25
0.01
0.26
0.25
0.02
0.27
0.25
0.02
0.27
0.26
0.02
0.27
0.26
0.02
0.28
0.26
0.02
0.28
0.27
0.02
0.28
(0.76)
2.18
0.13
2.31
(6.94)
2.15
2.21
0.13
0.13
2.28
2.35
(31.66) (15.22)
2.10
0.13
2.22
2.45
1.73
0.10
1.83
2.06
1.82
0.11
1.93
2.16
1.91
0.11
2.03
2.26
1.35
0.08
1.44
1.68
2.00
0.12
2.12
2.36
1.21
0.07
1.28
1.53
1.28
0.08
1.36
1.61
1.55
0.09
1.65
1.90
1.55
0.09
1.65
1.90
1.55
0.09
1.64
1.90
1.78
0.11
1.89
2.15
1.89
0.11
2.00
2.27
2.65
0.16
2.81
3.08
1.86
0.11
1.98
2.25
1.59
0.10
1.68
1.96
0.30
0.02
0.32
0.60
R11 + R12 + R13
(0.15)
(0.16)
(0.02)
(0.33)
(0.57)
(0.34)
(0.04)
(0.95)
(0.97)
(0.35)
(0.04)
(1.35)
(0.72)
(0.36)
(0.04)
(1.11)
(0.74)
(0.37)
(0.04)
(1.14)
(0.76)
(0.38)
(0.04)
(1.18)
(0.78)
(0.39)
(0.04)
(1.21)
(0.81)
(0.40)
(0.04)
(1.25)
(0.83)
(0.41)
(0.05)
(1.28)
(0.85)
(0.42)
(0.05)
(1.32)
(0.88)
(0.43)
(0.05)
(1.36)
(0.90)
(0.45)
(0.05)
(1.40)
(0.93)
(0.46)
(0.05)
(1.44)
(0.96)
(0.47)
(0.05)
(1.48)
(0.98)
(0.49)
(0.05)
(1.52)
(1.01)
(0.50)
(0.06)
(1.57)
(1.04)
(0.52)
(0.06)
(1.61)
(1.07)
(0.53)
(0.06)
(1.66)
(1.10)
(0.55)
(0.06)
(1.71)
(1.13)
(0.56)
(0.06)
(1.76)
R15 + R16
R14 + R17
0.13
1.54
1.67
1.34
1.52
2.08
3.60
2.66
4.07
2.09
6.16
4.81
5.32
2.47
7.79
6.67
5.49
1.59
7.08
5.94
5.67
1.58
7.25
6.07
5.85
1.77
7.62
6.41
6.04
1.08
7.12
5.87
6.23
1.34
7.57
6.29
6.44
1.06
7.50
6.18
6.65
0.64
7.29
5.93
6.86
2.55
9.41
8.01
7.09
3.06
10.15
8.71
7.32
2.74
10.06
8.58
7.56
2.31
9.87
8.34
7.81
1.83
9.64
8.07
8.07
2.70
10.77
9.15
8.33
1.56
9.90
8.24
8.61
1.19
9.80
8.09
8.90
0.69
9.59
7.83
9.12
8.00
8.23
8.68
7.54
8.65
7.71
7.54
9.92
10.61
10.49
10.50
10.34
12.23
10.49
10.05
8.43
(0.72)
(R1 - R4) x 6.0%
Sum (R1 - R5)
R7 x 6.0%
R7 + R8
R6 + R9
R10 + R18
2013 F WACC
(0.76)
6.99%
$32.50
(5.60)
(29.00) (10.41)
Appendix A-19 Attachment 4.xls
Cash Flow Table
Page 9 of 10
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
● AMI Alternative - Revenue Requirement Table
($ millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
A
Calculation
B
2014
C
2015
D
2016
Description
Capital Revenue Requirement - Meters
Return
0.04
1.15
Depreciation (6.7%)
0.04
1.14
Total Capital Revenue Requirement
R1 + R2
0.08
2.29
Capital Revenue Requirement - Fixed Network
Return
0.05
0.11
Depreciation (6.7%)
0.05
0.11
Total Capital Revenue Requirement
R4 + R5
0.11
0.21
Capital Revenue Requirement - NCC System (Software)
Return
0.02
0.03
Depreciation (10.0%)
0.02
0.05
Total Capital Revenue Requirement
R7 + R8
0.04
0.08
Capital Revenue Requirement - NCC System (Hardware)
Return
0.05
0.09
Depreciation (25.0%)
0.22
0.43
Total Capital Revenue Requirement
R10 + R11
0.27
0.52
Capital Revenue Requirement - Project Integration (EDTI Costs)
Return
0.11
0.23
Depreciation (10.0%)
0.16
0.37
Total Capital Revenue Requirement
R13 + R14
0.26
0.60
Capital Revenue Requirement - Project Integration (Vendor Costs)
Return
0.05
0.14
Depreciation (6.7%)
0.05
0.14
Total Capital Revenue Requirement
R16 + R17
0.11
0.28
Capital Revenue Requirement - Project Integration (Customer Awareness Program)
Return
0.01
0.02
Depreciation (6.7%)
0.01
0.02
Total Capital Revenue Requirement
R19 + R20
0.02
0.05
Capital Revenue Requirement - Capital Benefits
Return
(0.08)
(0.23)
Depreciation (6.7%)
(0.08)
(0.23)
Total Capital Revenue Requirement
R22 + R23
(0.15)
(0.46)
AMI - Incremental Operating Cost / Benefit
EDTI Operating Costs
(0.33)
(0.95)
EDTI Operating Benefits
1.67
3.60
Total: Incremental Cost / Benefit
R25 + R26
1.34
2.66
AMI - Incremental Revenue Requirement (RR) Impact
R3 + R6 + R9 + R12 +
Net Impact on RR
R15 + R18 + R21 + R24 (0.61)
0.91
R27
Discount Rate
2013 F WACC
6.99%
(28.50)
Net Present Value
E
2017
F
2018
G
2019
H
2020
I
2021
J
2022
K
2023
L
2024
M
2025
N
2026
O
2027
P
2028
Q
2029
R
2030
S
2031
T
2032
U
2033
V
2034
2.67
2.72
5.39
3.00
3.23
6.24
2.76
3.21
5.97
2.52
3.20
5.71
2.27
3.18
5.45
2.03
3.16
5.19
1.79
3.14
4.93
1.55
3.12
4.67
1.32
3.10
4.41
1.08
3.08
4.16
0.84
3.06
3.90
0.61
3.04
3.64
0.37
3.01
3.39
0.14
2.95
3.09
(0.05)
1.83
1.78
(0.15)
0.23
0.08
(0.17)
(0.31)
(0.48)
(0.17)
(0.32)
(0.49)
0.10
0.11
0.21
0.09
0.11
0.21
0.09
0.11
0.20
0.08
0.12
0.20
0.08
0.12
0.20
0.07
0.12
0.20
0.07
0.13
0.19
0.06
0.13
0.19
0.06
0.13
0.19
0.05
0.14
0.19
0.05
0.14
0.19
0.04
0.14
0.19
0.03
0.15
0.18
0.03
0.10
0.13
0.03
0.05
0.08
0.03
0.05
0.09
0.03
0.06
0.09
0.03
0.06
0.09
0.03
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.05
0.00
0.05
0.05
0.00
0.02
0.02
0.06
0.43
0.49
0.03
0.43
0.46
0.01
0.22
0.22
0.26
0.45
0.71
0.25
0.48
0.73
0.22
0.48
0.70
0.18
0.48
0.67
0.15
0.48
0.63
0.12
0.48
0.60
0.08
0.48
0.56
0.05
0.48
0.53
0.02
0.32
0.34
0.01
0.11
0.12
0.00
0.03
0.03
0.19
0.20
0.39
0.21
0.23
0.44
0.19
0.23
0.43
0.18
0.23
0.41
0.16
0.23
0.40
0.14
0.23
0.38
0.13
0.23
0.36
0.11
0.23
0.35
0.10
0.23
0.33
0.08
0.23
0.31
0.06
0.23
0.30
0.05
0.23
0.28
0.03
0.23
0.26
0.02
0.18
0.20
0.01
0.10
0.10
0.00
0.03
0.03
0.00
0.00
0.00
0.00
0.04
0.04
0.08
0.04
0.05
0.09
0.04
0.05
0.09
0.04
0.05
0.08
0.03
0.05
0.08
0.03
0.05
0.08
0.03
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.07
0.02
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.06
0.01
0.05
0.05
0.00
0.04
0.04
0.00
0.02
0.03
0.00
0.01
0.01
(0.37)
(0.38)
(0.75)
(0.50)
(0.54)
(1.03)
(0.59)
(0.67)
(1.27)
(0.67)
(0.80)
(1.47)
(0.75)
(0.93)
(1.68)
(0.80)
(1.04)
(1.85)
(0.85)
(1.16)
(2.01)
(0.89)
(1.28)
(2.16)
(0.89)
(1.36)
(2.25)
(0.89)
(1.46)
(2.36)
(0.90)
(1.57)
(2.47)
(0.90)
(1.68)
(2.58)
(0.90)
(1.80)
(2.70)
(0.91)
(1.85)
(2.77)
(0.95)
(1.86)
(2.81)
(0.99)
(1.87)
(2.85)
(0.99)
(1.84)
(2.82)
(0.93)
(1.77)
(2.70)
(1.35)
6.16
4.81
(1.11)
7.79
6.67
(1.14)
7.08
5.94
(1.18)
7.25
6.07
(1.21)
7.62
6.41
(1.25)
7.12
5.87
(1.28)
7.57
6.29
(1.32)
7.50
6.18
(1.36)
7.29
5.93
(1.40)
9.41
8.01
(1.44)
10.15
8.71
(1.48)
10.06
8.58
(1.52)
9.87
8.34
(1.57)
9.64
8.07
(1.61)
10.77
9.15
(1.66)
9.90
8.24
(1.71)
9.80
8.09
(1.76)
9.59
7.83
1.78
0.54
0.48
(0.40)
(1.27)
(1.22)
(2.12)
(2.48)
(2.81)
(5.53)
(6.71)
(7.00)
(7.16)
(7.37)
(9.97)
(10.88)
(11.30)
(10.92)
● AMI Alternative - Revenue Requirement Chart
$ Millions
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
($2.5)
2015
$0.0
2014
$2.5
2016
Incremental Impact to Revenue Requirement (RR)
(AMI Net Capital RR & Incremental AMI Operating Cost / Benefits)
($5.0)
($7.5)
($10.0)
($12.5)
($15.0)
February 28, 2014
Year
Appendix A-19 Attachment 4.xls
Rev Requirement Table
Page 10 of 10
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Alberta
Real-Time Electricity Consumption Monitoring Study
Sponsored by:
Alberta Department of Environment and Water
Alberta Department of Energy
Project Manager: Alberta Innovates – Technology Futures
Econometrics Consultant: Dr. Dean Mountain, Mountain Economic Consulting and
Associates, Inc.
In-kind Contribution and Project Implementation Support: ENMAX, EPCOR
March 2012
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Disclaimer
This report is the final deliverable of the Alberta Real-Time Electricity Consumption
Monitoring Study contracted to Alberta Innovates-Technology Futures by the
Government of Alberta. The analysis and conclusions presented in this report are based
on the information collected during the project and are not intended to prescribe one
electricity conservation approach over the other. The study should only be used for
understanding consumer’s behavioural dynamics for energy conservation when realtime information for their electricity consumption is available to them.
Further, this report does not represent the position of the Government of Alberta or of
any of its departments.
The project team, project sponsors and partners or the Government of Alberta cannot be
held responsible for any liabilities arising from the unintended use or interpretation of
the report.
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Acknowledgements
The project team at Alberta Innovates – Technology Futures (AITF) gratefully acknowledges the
sponsorship of Alberta Environment and Water and the Department of Energy for this project.
In particular, AITF would like to thank Philip Shum of Alberta Department of Energy and
Monica Micek of Alberta Environment and Water for their guidance and support throughout
the project.
AITF would also like to thank Dean O’Bray, Brian Neufeld, Robert Rothstein, Candace BosmanTyler and Kathryn Gelsi of ENMAX, and Rob Reimer, Tammy Haydey, Connie Smart, Scott
Thomas, Naomi Broni and Melissa Gibson of EPCOR for their in-kind and project
implementation support, without which the project could not have been successfully
concluded.
Although Battle River REA had to withdraw from this study due to technical limitations of the
monitor, the support and encouragement received from Colleen Musselman and Bettyann
Skagen is gratefully acknowledged. The Rural Electrification Association of Alberta was
proactive in developing the proposal with AITF.
Thanks also to Market Surveillance Administrator of Alberta for approving this project.
The Authorship of the Report
Quinn Goretzky and Puneet Mannan of AITF authored Chapters 2, 3 and 5 , while Dr.
Mountain of Mountain Economic Consulting and Associates authored Chapters 6 and 7. Craig
Aumann of AITF built the software algorithms for merging the monthly electricity consumption
data with the daily weather data in addition to building the master data file – the electricity
consumption data and the data from the three participant surveys – which was subsequently
used for statistical analysis. The Executive Summary and Chapters 1, 4 and 8 have contributions
from both the AITF team and Dr. Mountain.
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Executive Summary
This report is the final project deliverable for the Alberta Real-Time Electricity Consumption
Monitoring Study which was managed and led by Alberta Innovates-Technology Futures (AITF)
with the financial support from Alberta Environment and Water and in-kind support from
ENMAX, EPCOR and Battle River REA (BRREA). AITF contracted the services of Dr. Dean
Mountain of Mountain Economic Consulting and Associates Inc. for undertaking the
econometric analysis related to this study and suggesting the overall methodology to be used
for the project. Dr. Mountain was selected for this project for his expertise in undertaking
similar studies in other jurisdictions in Canada and the US. This approach allowed for an
effective and accurate comparison of the results obtained within Alberta with those obtained in
other Canadian jurisdictions. AITF obtained Market Surveillance Administrator approval for
this project and took steps to protect the personal information of the study participants.
The objectives of this study were to investigate and answer three key questions:
(1) Do electricity consumers value real-time information about their electricity
consumption?
(2) Do they use that information to manage or reduce their energy use?
(3) What amount of energy could be saved if consumers value real-time electricity
consumption information and use it to manage their electricity consumption?
At the strategic level, the study’s objective was to provide analysis that could be used to inform
future electrical metering and energy conservation initiatives of both government and industry.
The study had three distinct phases – (1) the pre-field phase consisting of project design and
implementation plan, recruitment of participants, ordering and distributing Blue Line monitors,
and making data acquisition arrangements with the wires companies; (2) the field study phase
involving participants using the Blue Line monitors, responding to surveys and AITF receiving
monthly electricity consumption data feeds the wires companies; and (3) the data analysis
phase consisting of statistical analysis, interpreting, concluding and report writing.
Originally planned for randomly selected participants from ENMAX, EPCOR and BRREA
territories, the project selected participants from Calgary and Edmonton only. Rural
participants from the BRREA were excluded from the study because of the Blue Line electricity
consumption monitor being unsuitable for the electricity distribution system in BRREA. Other
makes for the monitor were not selected because the study was to be compared with similar
studies in other jurisdictions across North America which all used the Blue Line monitor.
Randomly selected participants (145 from Calgary and 140 from Edmonton) were provided
with monitors during the months of May and June 2010. Simultaneously, 15 participants each
from both areas were selected as the control participants who were not supplied with the
monitors, but who were required to respond to the surveys.
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ENMAX and EPCOR provided the two years historic electricity consumption data as well as the
one year during-the-study electricity consumption data for the study participants. AITF
protected the personal information of all the participants by creating and assigning project IDs.
The electricity consumption data for the main group (those supplied with the monitor) and the
control group (those not provided with the monitor) provided the basis for a time series and
cross sectional analysis of the consolidated data.
The study participants responded to three surveys, which provided insights into their
behaviour and attitude towards energy conservation during the study. The surveys were
administered in July, 2010, December, 2010, and May, 2011. The participants were given a token
incentive to respond to the each survey in a timely manner.
The three year electricity consumption data for all participants was normalized based on the
weather and survey data using a statistical algorithm. The analysis of the data has provided the
following conclusions:
•
An overall reduction of about 9% in electricity consumption was observed for the
participants when their electricity consumption during the study period was compared with
their electricity consumption during the two-years prior to the study. This reduction is
statistically significant at a 99% confidence level.
•
Based on 2010 population statistics of RRO eligible households, the projected savings
attributable to using real-time instantaneous feedback for Calgary and Edmonton would be
450,049 MWh, or the equivalent of the output of a 51 MW power plant operating
continuously for a year. This would be equivalent to a 9.7% reduction.
•
Households using air conditioning during summer showed lower percentage reduction in
electricity consumption in summer as compared with that of the other participants whereas
households using electric water heating and electric heating showed an overall higher
percentage reduction in their electricity consumption, at 17% and 14% respectively.
•
The study did not observe a decreasing tendency in energy saving measures as the study
progressed towards the end. In fact, the study observed a positive change in the number of
individuals per household changing their energy saving behaviour during the study. Other
factors such as education, household age composition and income played significant role in
the energy saving behaviour of Albertans.
The study has further concluded that: (1) the electricity consumers valued real-time information
about their electricity consumption; (2) they used that information in making informed choices
for energy savings; and (3) a household consuming about 7,000 kWh electricity per year
(average for the study participants) would save about 675 kWh during the same period.
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Contents
1.
Introduction and Background ................................................................................................... 8
2.
2.1
2.2
Replicating the Study in Alberta ............................................................................................... 10
Alberta retail electricity market
10
Protecting the personal information of participants
11
3.
Project Objectives ...................................................................................................................... 12
4.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
Project Implementation Plan ................................................................................................... 13
Households recruitment and selection
16
Training for handling outbound and inbound calls, installing monitors
17
The case of Battle River REA
19
Project coordination and communication
19
Blue Line monitor delivery and installation support
20
Participant withdrawal
22
Survey response incentive
22
Project risk and issue management initiatives
22
5.
Participant Surveys .................................................................................................................... 25
6.
6.1
6.2
Conservation Analysis and Impact using Model................................................................. 29
Data collection
29
Analytical model definition
30
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.3
Electric heating formulation .......................................................................................................... 31
Electric water heating formulation............................................................................................... 33
Air conditioning formulation........................................................................................................ 33
Other electrical load formulation ................................................................................................. 34
Seasonal and trend related formulation ...................................................................................... 35
Real-Time monitor impact formulation ...................................................................................... 35
Model analytics
38
6.3.1 Reasonableness of model ............................................................................................................... 38
6.3.2 The Impact of the real-time monitor ............................................................................................ 42
6.3.3 Extrapolation to population .......................................................................................................... 50
7.
7.1
7.2
Participant Attitudes, Perceptions and Technical Difficulties with the Real-Time
Monitor ........................................................................................................................................ 58
Participant’s attitudes and perceptions
58
Technical difficulties with the monitor
66
8.
Conclusions ................................................................................................................................. 68
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Appendices ............................................................................................................................................... 71
Appendix 1: Pre-recruitment Introductory Mailer
71
Appendix-2: Qualification Questions for Household Recruitment
72
Appendix-3: Fact Sheets for the Alberta Government Website
74
Appendix-4: Project Welcome Letters
77
Appendix-5: Gift Card Letter
79
Appendix-6: Battery Mail-out Letter
80
Appendix-7: Survey Invitation Letter
81
Appendix-7A: Sample Survey for Participants
82
Appendix-7B: Sample Survey for Control Group
92
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1. Introduction and Background
Usually, residential electricity consumers see their bill on a monthly basis. Furthermore, even
under regular billing there are lags between the billing date and the time of receiving the bill. By
the time the customer receives billing information, the connection between the customer’s
actions with respect to electricity usage and the resulting bill is most often lost. In addition,
usually no breakdown of consumption by time of day is provided to the customer. And even
though a customer has a meter which can be read periodically, it’s probably not very accessible
and may be perceived as difficult to understand. In fact, electricity is one of the unusual
commodities for which immediate feedback regarding actual consumption does not occur when
used. The delayed or lack of access to daily consumption information impedes the ability of the
average consumer to make daily electricity consumption decisions.
If electricity consumption information were provided real-time, then would that change
consumers’ electricity consumption behaviour? The principal purpose of this project was to
quantify the change in electricity consumption due to availability of direct feedback
information. The provision of this instantaneous feedback is facilitated by a real-time electricity
monitor that provides instantaneous kW usage. Similar studies undertaken by Dr. Dean
Mountain in Ontario, British Columbia, Newfoundland and Labrador, South Carolina and
Virginia have found that households that use real-time feedback devices have demonstrated a
reduction in electricity consumption. Therefore, in 2010, Alberta Innovates – Technology
Futures (AITF) was contracted by the Government of Alberta to undertake a similar study
based on Dr. Mountain’s methodology, to see if a similar result would occur in a competitive
retail electricity market.
To ensure success in its proposal, AITF made secure strategic relationships with key partners
and vendors in this project. AITF secured the services of Dr. Mountain of McMaster University
for providing the econometric analysis in this study. Dr. Mountain had provided similar
contributions to studies undertaken in other jurisdictions. AITF also arranged the support from
the targeted wires companies (ENMAX, EPCOR and Battle River REA). The wires companies
agreed to provide significant in-kind contributions. AITF also arranged the purchase of
sufficient numbers of PowerCost Monitors manufactured by Blue Line Innovations, which were
the electricity consumption monitors used in similar studies. Without these strategic
relationships, AITF would have been unable to deliver this project for the Government of
Alberta.
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The project commenced February 2010, with a kick off meeting between the Government of
Alberta, wires companies, Dr. Mountain and AITF. After a review and selection period, the realtime electricity monitor package (consisting of the transmitter and the in-home device) was first
delivered to a stratified random sample of 280 randomly chosen residential study participants,
beginning in May 2010, and the majority were sent out by July, 2010. As well, a stratified
random sample of 30 randomly-chosen control study participants, those who did not receive
the real-time monitor, were selected in the spring of 2010. After which, the year-long study was
conducted.
The report is organized into chapters, each covering unique aspects of the project. The
Introduction is followed by the explanation of the uniqueness of Alberta’s electricity market and
what it meant for replicating the project in Alberta (Chapter 2), project objectives (Chapter 3),
project implementation plan (Chapter 4), participant surveys (Chapter 5), electricity
conservation analysis (Chapter 6), participant behavioural aspects and difficulties with the
monitor (Chapter 7) and finally, the results and lesson learned from this project (Chapter 8).
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2. Replicating the Study in Alberta
Dr. Mountain has undertaken similar studies in Ontario, Newfoundland, British Columbia,
South Carolina, and Virginia. The Government of Alberta required this study format to be
replicated by AITF in Alberta. The study was replicated in Alberta for comparing Alberta
results with other jurisdictions on a consistent basis. Selection of a different study format would
have provided different information format, and therefore different incentives for saving
electricity. However unlike these other markets, Alberta has a competitive retail electricity
market, which led AITF to take a number of steps to accommodate the market structure in
Alberta.
2.1 Alberta retail electricity market
Before outlining the steps taken by AITF, a short overview of the Alberta retail electricity
market will be given. Alberta’s residential electricity markets are served by two parties:
electricity retailers and wire service providers.
Power retailers or competitive retailers have been offering their options for electric energy and
other energy services to Albertans since 2001. Power retailers are licensed by the Government of
Alberta through Service Alberta, and they must comply with the Fair Trading Act.
Wire service providers operate and maintain the wires that deliver electricity to customers in
their regulated service territory. They also own and operate (meter reading and maintenance)
the electrical meter at each consumption point. The wire service providers are responsible for
nominating the Regulated Rate Option (RRO) provider in their geographic territory. The RRO is
the default rate for electricity. Albertans, who have not chosen a power retailer as their
electricity provider, by default, choose to accept service from the regulated rate provider that
operates in their service area.
The market structure prohibits wire service providers and their regulated rate providers power
retailer to share customer information, so as to benefit the marketing activities of their regulated
rate providers power retailer. Therefore, through regulation and legislation retail customers are
protected. The handling of customer information between the wire service providers and their
regulated rate providers and also competitive power retailers are overseen by the Market
Surveillance Administrator (MSA). Furthermore the MSA has a broad mandate including
surveillance, investigation, and enforcement to help ensure fair, efficient, and openly
competitive electricity and retail natural gas markets in Alberta
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2.2 Protecting the personal information of participants
To undertake this project, AITF secured permission from the MSA to gain access to personal
information of selected customers in both the EPCOR and ENMAX territories. For the purposes
of the study only single family dwelling residential customers that were on a RRO rate structure
were targeted. Furthermore, the MSA allowed AITF to compile personal customer information
from both power retailers (RRO providers) and wire service providers for this project.
AITF set up a SharePoint site that the wire service providers and power retailers could use to
upload spreadsheets containing customer information and data. The SharePoint was organized
into public and restricted folders. The public folders contained project communication, plans
and surveys. The restricted folders contained customer information and monthly electricity
consumption uploads. Further, the restricted folders were categorized into folders for EPCOR,
ENMAX and Dr. Mountain with each having access to their own folder only. Only two people
from both ENMAX and EPCOR had access to the restricted data and customer folders. Other
project team members from both companies had access to the public folders only. AITF
concealed the participant information and electricity consumption data files using project code
identifiers. The reference file for linking the actual participant information with the project code
identifiers was password protected and only known to one person in AITF. This file was not
uploaded on the SharePoint and hosted on AITF internal server. Only the data files with project
IDs were uploaded into the folder that could be accessed by Dr. Mountain. Therefore, Dr.
Mountain only had access to the modified spreadsheets that only contained project code
identifiers and contained no information that could be traced to a customer in either of the wire
service providers’ territories.
Both ENMAX and EPCOR ensured that their compliance offices agreed with this approach to
ensure all regulatory and oversight conditions were addressed.
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3. Project Objectives
The Real-Time Electricity Consumption Monitoring study had the following objectives:

To understand the effects of having real-time electricity consumption feedback on the
consumption behaviour of residential and rural consumers

To determine whether or not customers value having real-time electricity usage information

To determine whether or not customers will use this information to manage or reduce their
energy usage

To assess how Alberta consumers will behave when provided with real-time feedback
regarding their electricity consumption, and to extrapolate potential savings in Alberta.

To determine how much energy can be predicted to be saved and what measures customers
took to achieve these reductions, if customers do use this information to curtail their energy
usage
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4. Project Implementation Plan
The project required selecting a random sample of households from Calgary, Edmonton and a
rural community, representing areas served by ENMAX, EPCOR and Battle River REA
(BRREA) respectively. The selected households from each area were divided into two groups –
the main participants (hereinafter called the main group) who were provided with the monitor
and the control group, which was not provided with the monitor.
For the remaining part of this document the following terminology will apply: “main group
participants” for those who received the monitor, “control group participants” for those who
did not receive the monitor, and “participants” for collectively referring to both the groups.
The main group participants were sent Blue Line power consumption monitors in May 2010. No
monitors were distributed to the control group and they were unaware that another group in
the study was provided with the monitors. Both groups were required to answer three surveys
during the twelve month data-collection phase of the study which began in July 2010 after all
main group participants had received the monitors.
Table 1 is a listing of the major project activities along with their time schedule. Originally
contracted to end by August 31, 2011, the schedule was adjusted to end by October 31, 2011, to
account for a two months delay at the start of the project.
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Table 1: Project Activity and Time Schedule
Task
Description
1.00 Project Initiation
1.10 Assembly of population data for stratification
1.20 Determine appropriate sample size and
stratification
1.30 Setting up telephone number/mechanism for
customer support, CSR training
1.40 Send introductory letters and consent form to
potential participants
1.50 Outbound calls for participant recruitment,
digitally recorded consent
1.60 Receipt of stamped-voice consent from
participants
1.70 Participants for study and control sample
selected
1.80 Customer selection and contact information
extracts to AITF, ordering monitors
1.90 Monitors receipt by participants
2.00 Data Collection
2.20 Provide previous 2 years data for participants
2.30 Ongoing collection of billing data: meters read
monthly
2.40 Design first questionnaire for participants and
control sample
2.50 Send out first questionnaire to participants and
control group; receive response
2.60 Design second questionnaire for participants
and control group
2.70 Send out second questionnaire to participants
and control group; receive response
2.80 Design third questionnaire for participants and
control group
2.90 Send out third questionnaire to participants and
control group; receive response
3.00 Project Milestone Meetings
Timeline
Feb-Mar
2010
Feb-Feb
2010
Feb 2010
F e b- 10
M a r- 10
A pr- 10
M a y- 10
J un- 10
J ul- 10
A ug- 10
S e p- 10
N o v - 10
D e c - 10
J a n- 11
Mar 2010
Mar 2010
Mar-Apr
2010
Mar-Apr
2011
April-May
2010
Apr-May
2010
May-May
2010
Jun 2010Jun 2011
Apr-Apr
2010
Jun 2010Jun 2011
Mar-May
2010
Jun 2010
♦
♦
July-Sep
2010
Oct-Nov
2010
Jan-Mar
2011
Mar-Apr
2011
♦
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Appendix A-19 Attachment 5
♦
F e b- 11
M a r- 11
A pr- 11
M a y- 11
J un- 11
J ul- 11
A ug- 11
S e p- 11
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Task
Description
1.00 Project Initiation
1.10 Assembly of population data for stratification
1.20 Determine appropriate sample size and
stratification
1.30 Setting up telephone number/mechanism for
customer support, CSR training
1.40 Send introductory letters and consent form to
potential participants
1.50 Outbound calls for participant recruitment,
digitally recorded consent
1.60 Receipt of stamped-voice consent from
participants
1.70 Participants for study and control sample
selected
4.00 Data Base Preparation
4.10
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
4.11
5.00
5.10
5.20
5.30
5.40
5.50
2014-2015 PBR Capital Tracker
Timeline
Feb-Mar
2010
Feb-Feb
2010
Feb 2010
F e b- 10
M a r- 10
A pr- 10
M a y- 10
J un- 10
J ul- 10
A ug- 10
S e p- 10
N o v - 10
D e c - 10
J a n- 11
F e b- 11
M a r- 11
A pr- 11
M a y- 11
J un- 11
J ul- 11
A ug- 11
S e p- 11
Mar 2010
Mar 2010
Mar-Apr
2010
Mar-Apr
2011
April-May
2010
Mar 2010July 2011
Develop protocol for recording questionnaire
Apr 2010information
June 2010
Enter first questionnaire data into data base
July-Aug
2010
Update protocol for entry of second
Aug-Oct
questionnaire data into data base
2010
Enter second questionnaire data into data base
Nov-Dec
2010
Update protocol for entry of third questionnaire
Dec 2010data into data base
Feb 2011
Enter third questionnaire data into data base
Apr- May
2011
Develop protocol for entry of billing and weather
May-Aug
data
2010
Assemble data base for billing data and
July-Sep
weather: Stage 1, pre-pilot data
2010
Assemble data base for billing data and
May-July
weather: Stage 2, pilot data
2011
Merge questionnaire and billing/weather data
Jun-July
bases
2011
Analysis and Results
Apr 2011Sep 2011
Interim report on attitudes and perceptions
Feb-Feb
2011
Analytic econometric model specified for
April-June
residential and rural sectors
2011
Analysis of load responsiveness of pilot
June-Aug
2011
Recommendations for program implementation
Aug-Sep
and extrapolation to provincial level
2011
Final report and presentation
Sep-Sep
2011
♦
♦
♦
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The projected was officially launched with a project kick-off meeting on February 11, 2010. The
meeting involved participation from the Alberta Government, ENMAX, EPCOR, BRREA and
AITF. The project start was delayed by one and a half months and its completion date was
accordingly moved to October 2011.
4.1 Households recruitment and selection
For consistency of comparison, only single dwelling households on the RRO were selected for
this study. Furthermore, the project did not discriminate between those households based on
ownership (provided that the ownership/residence remained with the same family through the
previous two years as well) or age.
The wires companies were asked to provide the mean and standard deviation of electricity
consumption of all the RRO consumers in specified consumption ranges. This analysis formed
the basis of the random sample size distribution (stratification) for each territory. In general,
more households were recruited from the class interval having a higher standard deviation
compared with the rest of the class intervals.
The stratification was based on Dalenius Hodges and Neyman allocation techniques. Within
each region, six kWh strata were chosen. Original population shares and standard deviations
are shown in Table 2. The resulting overall stratification is shown in Table 31. Monthly billing
data were collected for these participants thereafter. Households were also selected that had
historical monthly billing data for two years before the study began. A parallel control sample,
roughly 10% of the participants, was allocated across the kWh class intervals
Table 2: Population Statistics (2009)
Single Family Dwellings
kWh Interval
Ranges
0-3,000
3,000-4,500
4,500-7,500
7,500-10,500
10,500-18,000
>18,000
Proportion of
Dwellings
0.1474
0.1630
0.3351
0.2047
0.1299
0.0198
Interval Means
(kWh)
2,073
3,768
5,950
8,811
12,928
24,081
1
Interval Standard
Deviations (kWh)
661.7
431.5
854.5
848.1
1,913.7
9,374.0
Thirteen of the recruited participants withdrew at the time of delivery of the monitor and another seven
withdrew by December, 2010.
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Table 3: Study Sample Size and Stratification
EPCOR (Edmonton)
Individually Metered Single-Family Dwellings
Annual kWh interval ranges
0-3,000
3,000-4,500
4,500-7,500
7,500-10,500
10,500-18,000
>18,000
Total
Pilot Total
13
9
38
23
33
24
140
Control Sample
2
1
3
3
3
3
15
ENMAX (Calgary)
Individually Metered Single-Family Dwellings
Annual kWh interval ranges
0-3,000
3,000-4,500
4,500-7,500
7,500-10,500
10,500-18,000
>18,000
Total
Pilot Total
13
9
38
23
33
24
140
Control Sample
1
1
5
2
4
2
15
Main group/control group enrolment distribution for the three territories was 140/30 (ENMAX,
Calgary), 140/30 (EPCOR, Edmonton) and 125/13 (BRREA). Participants were recruited using
the call center operations of the three wires companies. Pre-recruitment introductory mailers
(See Appendix 1 for a sample) were sent to six times the number of households to be actually
recruited, so as to ensure a suitable level of study participants.
4.2 Training for handling outbound and inbound calls, installing monitors
AITF conducted training sessions for ENMAX EPCOR and BRREA call centre staff for
familiarizing them with the project and the meter monitor. The staff from the wires companies
was also asked to install the monitor on a training meter provided by EPCOR. The hands-on
practical training familiarized the call center staff with the monitor and prepared them for
answering potential questions from the recruited participants.
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The wires companies prepared customized outbound calling scripts for participant recruitment
after AITF provided them with a list of qualification questions (see Appendix-2). The
qualification questions measured the participant’s commitment to the project and screened
those who were either less interested in the project or were unsuitable candidates for the
project. The participant’s consent to participate and the project’s commitment to protect
individual information were recorded during the phone conversations with the potential
participants.
By the end of March 2010, all pre-field phase tasks for the project were completed. Table 4 is a
summary of those tasks.
Table 4: Pre-Field Stage Project Tasks for the Project
Project Milestone/Task
Date Completed
Comments
Project kick-off meeting
February 11, 2010
Main participant group
stratification
March 10, 2010
Control group stratification
March 10, 2010
Introductory letter
March 5, 2010
Mailing of introductory letter
Week of March 8 by
EPCOR, week of
March 15 by BRREA
Participation by AITF, AEW, ADOE,
ENMAX, EPCOR, BRREA and Dr.
Mountain
Completed by Dr. Mountain for ENMAX,
EPCOR and BRREA; ENMAX and
EPCOR 140 participants each, BRREA
125 participants
Dr. Mountain determined control group
required: ENMAX and EPCOR 15
participants each, BRREA 13 participants
One master draft version finalized; each
wires company made some changes to
accommodate their unique requirements
ENMAX letters were sent on March 26.
Preparation of outbound
calling script
GOA Public Information
Center CSR training
EPCOR CSR training
ENMAX CSR training
BRREA CSR training
Participant recruitment
Ordering Blue Line monitors
March 9, 2010
Survey design
Draft for the first
survey prepared in
March
March 11 & 25, 2010
March 12, 2010
March 18, 2010
March-May 2012
May 2010
Each wires company prepared their own
script based on the qualification
questions designed by AITF
Monitors were shipped after the receipt
of all participant contact information from
the wires companies in May 2010
The final version was prepared after the
participant recruitment was completed in
April 2010
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4.3 The case of Battle River REA
As per the work plan, AITF undertook a training session for the Battle River REA customer
service representatives. The training session went well, but in the course of installation of the
meter monitors at a customer location a problem became apparent. Invariably all electricity
meter installations in the Battle River area are more than 50 feet away from the home (as
confirmed by Battle River REA’s management), installed on a separate electricity pole. This
distance, although well within the Blue Line monitor’s theoretical transmission range, is
challenging for communication between the sensor unit (installed on the pole outside) and the
display unit (within the confines of the main participant’s home). After also accounting for the
drop in the range of communication signal because of the house’s walls, Battle River REA
management quickly saw this as a potential risk to the success of this project as well as a risk to
their relationship with their members, and decided to withdraw from the study.
Nonetheless, Battle River REA was a very committed partner to the project and expressed
interest in participating in a similar study for rural communities in the future by using a
different meter monitor.
4.4 Project coordination and communication
AITF and the wires companies agreed upon a clearly defined delineation of their roles and
responsibilities: EPCOR, ENMAX and BRREA provided (1) a list of selected consumers based
on a statistical stratification of those consumers, (2) billing and consumption information for
those consumers for three years timeframe, in a format that was mutually convenient, useful
and agreeable, (3) sent out project information in billing envelopes or otherwise to the
consumers, (4) appointed dedicated persons to coordinate the project with AITF for its entire
duration, while AITF (1) managed the project, (2) coordinated with ADOE, and the wires
companies, (2) coordinated the purchase and distribution of electricity consumption monitors,
and (3) analyzed data and conducted final analysis and interpretations based on the guidelines
set by the project.
All project communication with the participants
standardized, and also customized to
complement established procedures for each wires company. The project had bi-weekly
coordination meetings until the first surveys were sent out. After the first survey, the meetings
were held on a need basis, but project status updates were sent to all partners on a regular basis.
The project followed consistent branding guidelines and all public communication was cleared
by the government of Alberta’s (GOA) communication department. AITF developed the project
communication materials which were hosted on the GOA’s website in May 2010, well before the
meter monitors were shipped to the main group participants. See Appendix-3 for the factsheets
developed for communicating this project with the participants and general public.
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4.5 Blue Line monitor delivery and installation support
Blue Line Innovation’s PowerCost monitor was used for this study. This is the same monitor
which was used in the past studies led by Dr. Mountain. The monitor consists of a sensor unit
and a display unit. The sensor unit is installed on the glass cover of the electricity meter using a
collar band and does not require any electrical connections. The display unit could be placed
anywhere in the house. Both parts communicate with each other through a wireless connection.
See Figure 1 for a picture of the Blue Line PowerCost monitor.
In addition to the capability of providing instantaneous electrical power consumption, the
monitor could provide monthly electricity consumption in kWh as well as in dollars. However,
the participants were asked to focus on the instantaneous electricity consumption only because
there was a risk that the participants could start using the monitor to make comparison with
their actual electricity bills. Such a comparison, other than being inherently erroneous ((1) the
consumers would input a historic RRO rate into the monitor and that rate could be very
different than the rate that may be actually charged to them for their monthly bills, and (2) the
monitor did not have any provision for feeding in other fixed charges into the cost structure)
and could have inadvertently raised questions about the credibility of the electrical billing
process.
AITF negotiated a special bulk purchase price for the purchase of the monitor from Blue Line
and that price included extended technical support – a dedicated customer support helpline
(6AM to 9PM, 7 days a week) – for installation support and other technical issues for the
duration of the project. AITF did not offer any installation training or support to the
participants and those interested in participating in the project were qualified based on a multicriteria enrolment process and the ability to install the monitor was one of those criteria.
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Figure 1: PowerCost monitor
Monitors were directly shipped from Blue Line’s warehouse to each of the 285 main
participants (145 Calgary and 140 Edmonton) enrolled for the study. Battle River REA withdrew
from the project before the monitors were shipped to the participants.
Welcome letters outlining the project objectives and participant responsibilities were sent to all
participants. The letters also included contact information for seeking additional help; it
directed the participants to the Blue Line and GOA websites for answers related to the monitor
and project objectives, respectively. See Appendix-4 for a copy of the welcome letter.
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4.6 Participant withdrawal
The project recruited 285 households as the main participants who were provided with the Blue
Line monitors. Of the 285 originally recruited, 22 decided to withdraw during the monitor
distribution and the first survey administration process. Thus, the participant count for the
second survey was reduced to 263. One participant withdrew from the project at the time of
administering the second survey, bringing the participant group size to 262.
Two more main participants withdrew from the study after the second survey was
administered, bringing the participant count for the third survey to 260. For the control group,
there were no withdrawals and all of the original 30 recruits participated in the project.
The percentage of participants that withdrew from the study by the end of the project was
about 9%. Dr. Mountain noted, this compared favourably with the withdrawal rate in other
studies.
4.7 Survey response incentive
Although households were not provided with any incentive for participating in this study, they
were provided incentive for responding to the surveys. Previous studies conducted by Dr.
Mountain had shown that the survey response rate improved when the participants were
provided incentive for responding to the surveys. The project team decided to offer different
incentive to the main participant and control groups. While a main participant was given a $5
gift card for responding to each survey, the control participant was given $10 for the same
outcome. Different incentive rates were decided because the main participants had the
additional incentive of keeping the monitors beyond the duration of the project at no cost. See
Appendix-5 for the survey gift card letter.
4.8 Project risk and issue management initiatives
AITF undertook a proactive approach for retiring many of the project risks.
Confirming support from ENMAX, EPCOR and BRREA: The most significant risk was the
potential lack of support from the wires companies due to of lack of clarity and understanding
of the project. AITF initiated discussions with the wires companies, the Alberta Federation of
REAs and Market Surveillance Administrator (MSA) before submitting the proposal to the
Department of Energy. This pre-project engagement ensured critical stakeholder support
during the implementation of the project. As well, the pre-project engagements were
instrumental getting the ‘Letter of Support’ from the wires companies in good time.
Conducting trial runs for monitor installation: The project team ordered a few monitors for testing
them out for installation and electricity consumption monitoring before they were sent out to
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participants. The team simulated the real situations (going out in rural and urban houses for
testing the installation process) in running installation trials at different locations. Based on that
experience, the team obtained a demo meter and conducted training session with wires
company call centre staff to familiarize them with the installation and operation of the monitor.
Protecting participant information: AITF was respectful of the wires companies’ interest in
protecting the confidential information of their consumers as well as their operational
information. To this end, AITF created project IDs for all project participants and the key to
those IDs was only known to one person from AITF. The consumption data from the wires
companies was transferred to Dr. Mountain only after it had been tagged with the project IDs.
Using technology to control cost and schedule: AITF understood that being a long duration project
(18 months), it was exposed to considerable schedule as well as cost overrun risk. AITF used
technology to control cost and schedule effectively. For example, the participant recruitment
process identified participants who were willing to use electronic media for communication and
survey response. The electronic administration of the surveys reduced much of the data entry
burden associated with capturing the survey response. Additionally, the electronic surveys
reduced data input errors commonly associated with manual input of data, and improved
confidence in the survey results.
Providing dedicated customer service: Although the project team undertook trial installation runs
of the Blue Line monitor, it realized that the monitor installation could be challenging for some
participants. Consequently, AITF negotiated a purchase price for the monitors which was
inclusive of technical and installation support from Blue Line. Although this increased the unit
cost of the monitors, less than 8% of the main participants withdrew from the project because of
their inability to install the monitor.
Maintaining effective communication: Maintaining consistent understanding of the project among
the project stakeholders, and communicating the same with more than 300 households (main
participants and control groups), general public and media was considered a priority right at
the beginning of the project.
The AITF team conducted training sessions for the wires company staff and for the Government
of Alberta’s communication representatives. AITF also developed a project ‘fact sheet’ and a
‘frequently asked questions’ documents which were hosted on Alberta Department of Energy’s
website.
Managing potential third party liabilities: AITF coordinated the safety and legal review of the
project by the MSA and legal staff of the wires companies. The project moved into the on-field
phase upon approval from the project partners and MSA.
The abovementioned risk management initiatives sheltered the project from significant
unforeseen issues. The few issues that arose in the project were successfully addressed.
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Although Blue Line claimed that the monitor batteries would last for a year, the project team
was apprehensive of that claim. Therefore, a decision was made for providing replacement
batteries for the sensor unit of the monitor so that the monitor would have trouble free
operation during the winter. One pair of Lithium batteries was sent to each main participant in
the month of November, 2011. These batteries were rated to operate in below -20 Celsius
temperatures. See Appendix-6 for the battery mail out letter
According to the original project plan, participating households were to be sent gift cheques
upon the completion of each survey. However, during the first survey implementation the team
realised that the transaction cost for sending out cheques was many times more than the value
of those cheques. Consequently, sending out Tim Hortons’ gift cards in the same denomination
as the proposed cheques were sent to all survey respondents. The project limited a potentially
negative response for that change from the project participants and control households by
advising them of the change. See Appendix 5- for the gift card letter.
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5. Participant Surveys
The first survey was sent to 285 main and 30 control group households because the participant
withdrawal information was being updated simultaneously and clear cut-off dates were
difficult to determine. See Appendix-7 for a survey invitation letter and Appendix-7A and 7B
for a sample of the main group and control group surveys, respectively. Later surveys used
modifications of the first survey such that the information received from the first survey could
be cross checked from the other two surveys.
Four different document versions for the second surveys were prepared based on whether the
participants from the main and the control groups responded to or did not respond to the first
survey. See Figures 2 and 3 for taxonomy of the main and control groups for deciding which
survey version to be used.
Figure 2: Main Participant Group Taxonomy
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Figure 3: Control Group Taxonomy
Therefore, each group – participant V1, V2 and control V1, V2 – had a different survey to
answer. The surveys were administered during the months of November and December 2010.
Table 5 summarizes the consolidated results for the response rate received for each of the four
categories from that administration.
Table 5: Second Survey Response
Further, Table 6 provides a comparison between the results from the first and second surveys.
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Table 6: Comparison of Results from the First and Second Surveys
The third survey was sent to 260 main and 30 control group households. See Figure 4 for the
third survey taxonomy.
Figure 4: Third Survey Taxonomy
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Since the timing of administering of the third surveys coincided with the postal strike (June 14
to June 27, 2011) in Canada, the participants who had not responded by the week of June 13
were called over the phone for recording their response to the survey. Simultaneously, the
deadline for receiving response to the third survey was extended until June 30, 2011.
See Table 7 for the third survey response summary.
Table 7: Third Survey Response Summary
Survey Category
Survey P1
Those who completed the 2nd Survey
Survey P2
Those who completed the 1st but not
the 2nd Survey
Survey P3
Those who never completed a survey
Survey C1
Those who completed the 2nd Survey
Survey C2
Those who completed the 1st but not
the 2nd Survey
Survey C3
Those who never completed a survey
Surveys
Sent
178
Responses
Received
149
27
13
55
4
26
24
1
0
3
0
The response rate of the third survey was consistent with that from the previous two surveys.
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6. Conservation Analysis and Impact using Model
This chapter is an analysis of the main group’s load reduction, attributable to using the power
cost monitor. For all of the study participants, in addition to their monthly billing data during
the study period, the billing data for twenty-four months prior to their participation was also
collected. This was done in order to make before- and after- comparisons of their usage. Data
related to the weather for the electricity billing cycles, household appliance and demographic
data was also collected. This auxiliary data was used in the analytic models whereby participant
usage without the power cost monitor was controlled for.
An econometric model was used to measure possible conservation effects due to the use of the
real-time monitor. This model was specified such that it controlled for other factors influencing
electricity consumption such that the real-time feedback effect could be isolated. There are three
aspects which contribute to this control. The first aspect is that each main participant was
monitored on a before- and after- basis. The second aspect is that there is a parallel control
sample who did not receive such a monitor. One reason for this parallel control sample is that it
allows control for possible conservation that may have occurred anyways during the sample
time period2, thus establishing a baseline for measuring conservation. The third aspect is that
the model controls for the electricity consumption responding to traditional factors such as
weather, appliance configuration and household demographics.
Following the main and control participants through time provided the panel data. The panel
data provides the necessary input for analysis by an appropriately specified econometric model.
6.1 Data collection
After assembling the data, a number of issues had to be accommodated. For those observations,
where the participant had major technical difficulties with the monitor, the data were dropped
from the analysis. The billing period corresponding to installation is dropped because the
observation is mixed in nature. Also billing data were dropped for the months corresponding to
when the household was away. The first part of the billing period corresponds to no usage of
the real-time monitor and the second part of the billing period corresponds to usage of the realtime monitor.
Monthly billing data up until June 2011 were used. Thus, given that most monitors were sent to
main participants by June 2010 and to allow for the mixed billing month consisting of both no
usage and usage of the power cost monitor, the following analysis is effectively an analysis of
2
While the stratification proportions of the control sample correspond to the participant sample, there was
no stratification with respect to household characteristics. This is not necessary because of the modelbased econometric approach in isolating the effects of the real-time monitor conditional on household and
weather characteristics.
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the first twelve months of using the power cost monitor. For most participants billing data for
at least thirty months prior to using the real-time monitor was also part of the data set.
Moreover, there were some sample participants who did not respond in filling out any of the
three surveys. After the above data inspection, there were 8088 usable monthly observations,
approximately 210 main participants and 27 control participants.
Because billing cycles are customer- and time-specific, all heating and cooling degree day
information was matched precisely to the billing cycle.
Section 6.2, below, provides an analytical description of the model which decomposes the
monthly billing data into factors related to major end-uses such as electric heating, electric
water heating, air conditioning and other appliance-loads when no real-time electricity monitor
is used and the factors influencing billing use when the real-time monitor is used. Section 6.3.1
provides the resulting model’s parameter estimates. The readers not interested in the
underlying model structure and methodology for isolating the impact attributable to the realtime monitor may move to looking at the impacts in section 6.3.2.
6.2 Analytical model definition
Because the billing cycle varies through time for each participant and across participants, all
billing data is normalized by number of days in the billing period.
Depending on the appliance and heating/cooling configuration of a household, the total
consumption in the absence of the real-time monitor is deemed to be a function of variables
influencing electric heating usage, electricity water heating usage, air conditioning usage, and
other appliance usage. In addition, there may be time trend related factors perhaps related to
prices and overall conservation that may influence electricity usage. All of these factors
described
in
the
following
specification
are
in
the
functions
f 1 ( , ), f 2 ( , ), f 3 ( , ), f 4 ( , ), and f 5 ( , ). Once the real-time monitor is used by the customer,
further variables may come into play. They are captured in the function g ( , ).
More precisely, the logarithm of daily kWh consumption for household i at time t is ln y it ,
where ln y it is decomposed as follows:
1
2
3
4
5
ln yit  f 1 ( x it ,  )  f 2 ( x it ,  )  f 3 ( x ,  )  f 4 ( x ,  )  f 5 ( x ,  )  g ( z , )   it
~
~
~
~
~ it
~ it
~
~
~ it
~
~ it
~
for those households with some part of their heating load serviced by electricity,
1
f 1 ( x it ,  )  x
~
~
~
1
it

 , with parameter vector  , is a linear function of a vector of independent
~
~
1
variables ( x it ) influencing the electric heating load, in the absence of the real-time monitor;
~
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2
for those households with electricity water heating load, f ( x
2
~
it
,)  x
~
vector  , is a linear function of a vector of independent variables ( x
2
~
~
2
~
it
it

 , with parameter
~
) influencing the electric
water heating load, in the absence of the real-time monitor;
3
3
for those households with some air conditioning load, f ( x it ,  )  x
~
~
~
vector  , is a linear function of a vector of independent variables ( x
~
~
3
it
3
it

 , with parameter
~
) influencing the electric
air conditioning heating load, in the absence of the real-time monitor;
for all households, f 4 ( x
4
~
it
, )  x
~
of independent variables ( x
4
~
4
~
it
it

 , with parameter vector  , is a linear function of a vector
~
~
) influencing the remaining electricity loads, in the absence of the
real-time monitor;
5
5
for all households, f ( x ,  )  x
~ it
~
~ it
5

 , with parameter vector  , is a linear function of a vector
~
~
of seasonal, and conservation trend related independent variables ( x
~
5
it
) influencing the total
electricity load, in the absence of the real-time monitor;

for all households using the real-time monitor, g ( z , )  z  , with parameter vector  , is a
~ it
~
~ it
~
~
linear function of a vector of independent variables ( z ) influencing the electricity load, in the
~ it
presence of the real-time monitor; and,
 it is a stochastic error with possible autocorrelation.
Briefly, the following are the various components reflect the critical factors that influence the
corresponding usage.
6.2.1 Electric heating formulation
For those houses with some part of the dwelling heated with electricity, we would expect the
size of the house (measured in square feet), the age of the dwelling (measured by dummy
variables with the exclusion dummy variables representing dwellings built before 1940), the
weather (measured in heating degree days), the number of residents, income, and real price of
electricity, to probably matter.
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1
f 1 ( x it ,  )  x
~
~
~
1
it

2014-2015 PBR Capital Tracker

~
  0   1 NRit   2 LIN it   3 LPEN it   4 A1i   5 A2 i 

  DFit SQit HDDit
A
A
A
A
A

3

4

5

6

7





6
i
7
i
8
i
9
i
10
i


where
DFit is the proportion of the dwelling heated by electricity at time t ;
HDDit is the normalized (per day) heating degree days (with reference temperature 18 degrees
Celsius) measured during time t ;
SQit is the square footage of the dwelling;
NRit is the number of residents in the household;
LIN it is the logarithm of household income;
LPEN it is the real marginal electricity price;
1 if dwelling built between 1940 and 1969
A1i  
otherwise
0
1 if dwelling built between 1970 and 1986
A2 i  
otherwise
0
1 if dwelling built between 1987 and 1990
A3i  
otherwise
0
1 if dwelling built between 1991 and 1993
A4 i  
otherwise
0
1 if dwelling built between 1994 and 1998
A5i  
otherwise
0
1 if dwelling built between 1999 and 2003
A6 i  
otherwise
0
1 if dwelling built after 2003
A7 i  
otherwise
0
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6.2.2 Electric water heating formulation
For electric water heating, the number of residents, the age composition, income and hot water
related appliances may matter.
2
f 2 ( x it ,  )  x
~
2
~
~
it


~
  0  1 NRit   2 LIN it   3 LPEN it   4 NAG1it   5 NAG 2 it 

  DWit
4

NAG

APDW

APCW



6
7
8
it
it
it


where
1 if dwelling has electricit y water heating
DWit  
;
otherwise
0
NRit is the number of residents in the household;
LIN it is household income;
LPEN it is the real marginal electricity price;
NAG1it is the number of household members less than or equal to 14;
NAG2 it is the number of household members greater than or equal to 15 and less than or equal
to 19;
NAG4 it is the number of household members greater than or equal to 65; and
APDWit is the wattage of all dishwashers in the dwelling;
APCWit is the wattage of all clothes washers in the dwelling.
6.2.3 Air conditioning formulation
For air conditioned houses, the square footage, the weather (measured by cooling degree days),
the size of the house (measured in square feet), the age of the dwelling (measured by dummy
variables with the exclusion dummy variables representing dwellings built before 1940), the
number of residents, income, and real price of electricity, may matter.
3
f 3 ( x it ,  )  x
~
~
~
3
it

    1 NRit   2 LIN it   3 LPEN it   4 A1i   5 A2 i 
  DAit SQit CDDit 
   0
~
   6 A3i   7 A4 i   8 A5 i   9 A6 i   10 A7 i

where
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2014-2015 PBR Capital Tracker
DAit is the proportion of the dwelling air conditioned at time t ;
CDDit is the normalized (per day) cooling degree days (with reference temperature 22 degrees
Celsius) measured during time t ;
SQit is the square footage of the dwelling;
NRit is the number of residents in the household;
LIN it is household income;
LPEN it is the real marginal electricity price;
1 if dwelling built between 1940 and 1969
A1i  
;
otherwise
0
1 if dwelling built between 1970 and 1986
A2 i  
;
otherwise
0
1 if dwelling built between 1987 and 1990
A3i  
;
otherwise
0
1 if dwelling built between 1991 and 1993
A4 i  
;
otherwise
0
1 if dwelling built between 1994 and 1998
A5i  
;
otherwise
0
1 if dwelling built between 1999 and 2003
A6 i  
;
otherwise
0
1 if dwelling built after 2003
A7 i  
.
otherwise
0
6.2.4 Other electrical load formulation
For the other electricity component, the number of residents, the income, the real price of
electricity, and the stock of appliances should matter.
4
f 4 ( x it ,  )  x
~
~
~
4
it

   0   1   2 NRit   3 LIN it   4 LPEN it   APTit 
~
  5 APONUM it   6 APEXTRA it
where
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
APTit is the total wattage of the following appliances: clothes dryer, dishwasher, freezer,
microwave, toaster oven, mini-bar, personal computer, printer, fax machine, stove, refrigerator,
television, DVD player/recorder, home entertainment system, washing machine;3
NRit is the number of residents in the household;
LIN it is household income;
LPEN it is the real marginal electricity price;
APONUM it is the total number of saunas, hot tubs and whirlpools;
APEXTRAit is the total number of electric vehicles, driveway heaters, large power shop tools
and elevators.
6.2.5 Seasonal and trend related formulation
For the formulation related to trend and seasonal components, perhaps capturing ongoing
conservation unrelated to the real-time monitor, a parsimonious specification was adopted.
There is a trend component modeled as the square-root of time and one seasonal departure
from the rest of the year. Spring (March, April and May), usually one of the seasons with lower
consumption and not associated with significant air conditioning was chosen as the
distinguishing seasonal explanatory variable.
5
f 5 (x , )  x
~ it
~
~ it
5

  1 DSPit  2 Tit
~
where
1
DSPit  
0
for month of March, April and May
otherwise
;
Tit is a time index attached to the time (in months) for each observation.
6.2.6 Real-Time monitor impact formulation
Possible variables influencing instantaneous feedback, would include the configuration and
influence of space heating, water heating and air conditioning, number of residents, education,
the real price of electricity, and the age and education distribution of household members.
Furthermore, it is desirable to test whether there is any attenuation of impact during the study.
In other words, does the feedback response diminish or increase during the time of using the
real-time monitor? This requires the introduction of dummies for the spring of 2011 and
3
The estimated wattages are calculated using typical wattages reported in the literature for the individual
electricity-using equipment.
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
summer of 2011 which is the latter part of the period for participants in the study to test for
attenuation.

g(z , )  z  
~ it
~
~ it
~
 0   1 DWit   2 DFit SQit HDDit   3 DAit SQit CDDit



   4 NRit   5 LIN it   6 LPEN   7 EDP1it   8 EDP 2 it
  Dit
   SEN   YNG   TEEN   DSP11   DSM11 
it
it
it
it
it 
10
11
12
13
 9
where
1 when real  time monitor is used
Dit  
;
otherwise
0
1 if dwelling has electricit y water heating
DWit  
;
otherwise
0
DFit is the proportion of the dwelling heated by electricity at time t ;
0
DFWit  
1
for months of June, July and August
otherwise
DAit is the proportion of the dwelling air conditioned at time t ;
HDDit is the normalized (per day) heating degree days (with reference temperature 18 degrees
Celsius) measured during time t ;
CDDit is the normalized (per day) cooling degree days (with reference temperature 22 degrees
Celsius) measured during time t ;
SQit is the square footage of the dwelling;
NRit is the number of residents in the household;
LIN it is household income;
LPEN it is the real marginal electricity price;
EDP1it is the proportion of household members aged 15 years and over whose highest level of
education is high school;
EDP2 it is the proportion of household members aged 15 years and over whose highest level of
education is college or university;
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
SEN it is the proportion of household members greater than or equal to 65;
YNGit is the proportion of household members less than or equal to 14;
TEEN it is the proportion of household members greater than or equal to 15 and less than or
equal to 19;
1
DSP11it  
0
1
DSM11it  
0
for month of March, April and May in 2011
otherwise
for month of June of 2011
otherwise
;
.
The underlying error is assumed to be AR(1). That is uit  ui ,t 1  eit . This allows for typical
autocorrelation across months for individual households. The selection of the model’s
parameters is based on maximizing the likelihood function. To account for missing and initial
data points for each panel participant, a method similar to that of Beach and MacKinnon (1978)
is used.
Essentially, if the real-time monitor had no effect on consumption, g=0. Otherwise, the
percentage impacts attributable to the real-time monitor, as in chapter 6.3.2, are calculated by
( ̂)
)
using (
where the percentage impact is considered relative to a period where
the household (either participant or control household) does not possess the real-time monitor
̂ )and at the sample
and where ̂ is evaluated using the estimated coefficients (̂ ̂ ̂
mean of characteristics at the time in which the real-time monitor was not owned. These mean
characteristics are calculated for all the explanatory
variables in
such as
with
.
The statistical variance of the real-time percentage impact is
on the aforementioned means of the explanatory variables.
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February 28, 2014
Appendix A-19 Attachment 5
[(
( ̂)
)
], conditional
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
6.3 Model analytics
6.3.1 Reasonableness of model
Originally, a much larger model described in section 6.2 was estimated. A number of chisquare tests were conducted to eliminate insignificant variables. For the electric heating submodel, coefficients of logarithm of income, number of residents and logarithm of electricity
price are statistically insignificant ( H 0 : 1   2   3  0 was not rejected (  (3)  0.83) at the
2
5% level of significance). For the electric water heating sub-model, the coefficients of logarithm
of income and the wattage of the dwelling’s dishwasher(s) showed little statistical significance.
(That is, the null hypothesis H 0 :  2   7  0 was not rejected (  (2)  4.07 ) at the 5% level of
2
statistical significance.) For the air conditioning sub-model the coefficient of the logarithm of
electricity price variable and the dwelling’s age coefficients were statistically insignificant (
 2 (8)  4.22 ). For the other electricity sub-model, only the coefficient of the price variable with
a prob  0.999 was statistically insignificant. With respect to the real-time sub-model, a subset
(corresponding to the number of residents, the logarithm of price of electricity and the
proportion of the household who are children and teenagers) of the coefficients were not
statistically significant. (The null hypothesis H 0 :  4   6  10  11  0 was not rejected (
 2 (4)  4.39 ) at the 5% level of statistical significance.)
Thus, the final model displayed in Table 8 excludes some of the suggested explanatory variable due
2
to their statistical insignificance. The model seems to be well specified; R  0.8941. This is a
very good fit for such panel data, particularly since the monthly time series is confined to about
41 months per participant. The final specification’s parameters, along with standard errors are
displayed in Table 8. A quick look at the parameters of the model shows most parameters with
relatively low standard errors.
For the electric heating sub-model, not unexpectedly, the age of the dwelling seems to matter in
explaining electric heating consumption. (The H 0 :  4   5   6  ...  10  0 was rejected (
 2 (7)  34.51 ) at the 5% level of statistical significance).
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
With respect to electric water heating load, the number of children, teenagers and seniors
negatively affect electricity usage. Furthermore, water heating loads are positively responsive
to the number of household members and the clothes washer wattage. As well, the higher the
price of electricity the lower is the usage of electricity used by the water heater.
With respect to air-conditioning, the higher the number of residents, the higher is the air
conditioning load. As well, the higher the price of electricity the lower is the air conditioning
load.
With respect to other influences on electricity consumption, seasonality also plays a role with
the spring season showing decreased usage ( 1  0 ). Furthermore, there is a slight increase in
consumption over time (albeit not very statistically significant) with 2  0 .
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 8: Estimated Parameters of Model
Scaling Factor
Parameter
Standard Error
Electric Heating Parameters
(All variables interacted with DFit SQit HDDit )
0
10 4
0.1496
0.0547
 4 : A1
 5 : A2
10-5
-0.6913
0.5587
10
-4
-0.1258
0.0552
 6 : A3
 7 : A4
 8 : A5
 9 : A6
10 : A7
10-5
-0.9754
0.6109
10-4
-0.1073
0.0553
10-4
-0.1317
0.0551
10-4
-0.1030
0.0553
10-5
-0.9661
0.5531
Electric Water Heating Parameters
(All variables interacted with DWit )
0
1 : NR
 3 : LPEN
 4 : NAG1
 5 : NAG 2
 6 : NAG 4
 8 : APCW
100
-0.3759
0.2243
100
0.1339
0.0458
10-1
-0.9490
0.7038
100
-0.1928
0.0626
100
-0.1065
0.0837
10
-0.4890
0.1227
0.3653
0.1601
0
10 2
Air Conditioning Parameters
(All variables interacted with DAit SQit CDDit )
0
 1 : NR
 3 : LPEN
10 3
10
4
10-3
0.9966
0.0997
-0.1864
0.2013
-0.3112
0.1919
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Appendix A-19 Attachment 5
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 8 (continued)
Scaling
Factor
Parameter
Standard Error
Other Electricity Load Parameters
0
100
2.1817
0.0814
1 : APT
 2 : APT  NR
 3 : APT  LIN
10-4
-0.7031
0.4495
10
0.1404
0.0186
0.1640
0.0375
 5 : APONUM
 6 : APEXTRA
100
0.1120
0.0178
10-1
0.5190
0.1769
-4
10
-4
Seasonal, and Trend Parameters
1 : DSP
10-1
-0.2905
0.0860
2 : T
10-2
0.9062
1.0770
Real-time Monitor Impact Parameters
(All variables interacted with Dit )
0
100
-0.4796
0.2631
100
1 : DW
 2 : DF
10-5
 SQ  HDD
 3 : DA
100
 DSM  CDD
 5 : LIN
10-1
-0.1098
0.0806
-0.1250
0.0759
0.1616
0.0322
0.7134
0.2335
100
-0.2715
0.0855
100
-0.3960
0.0850
100
-0.1124
0.0564
10-1
-0.9213
0.2491
10
-0.1903
0.0370
 7 : EDP1
 8 : EDP2
 9 : SEN
12 : DSP11
13 : DSM11
0
R2: 0.8941
 : 0.8985
(0.0049)
Log of the Likelihood Function: 250.11
Number of Observations: 8088
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
6.3.2 The Impact of the real-time monitor
Does the real-time monitor affect consumption? As noted above, originally, a much larger real
time monitor sub-model was estimated. The statistically significant remaining real time monitor
sub-model is shown in Table 8. Notice that a number of the remaining coefficients are
statistically significant at either the 5% or 10% level of significance. The statistical significance of
the remaining  i illustrates that the real-time monitor has a significant impact on customer
behaviour.
A
rejection
of
H 0 :  0  1   2   3   5   7   8   9  12  13  0
the
null
(  (10)  82.67)
2
hypothesis
indicates
that
instantaneous feedback provided by the real-time monitor significantly influences electricity
consumption. There are a number of important determinants (see Table 8) influencing the
responsiveness to the real-time monitor. The heating configuration and heating degree days, the
air conditioning configuration, the household income, household members’ levels of education,
the age composition of the household and the duration of experience with the real-time monitor
all play a role in affecting the impact of the real-time monitor on customer behaviour.
Unlike the Ontario study, but similar to the Newfoundland study, a household with electric
heating shows a larger percentage reduction when using the real-time monitor (  2  0 ).
However, like the South Carolina study, the percentage reduction decreases in the summer
months for households with air conditioning (  3  0 ). There is definitely a positive
relationship between reduction in consumption and education (  7 , 8  0 ). This behavioural
influence coming from education is consistent with earlier findings in the British Columbia,
South Carolina and Virginia studies. Furthermore, unlike the Virginia study there is no
attenuation in responsiveness in using the power cost monitor ( 12 ,13  0 ). ( H 0 : 12  13  0
is rejected at the 5% level of statistical significance (  (2)  27.89 ))
Furthermore, the
responsiveness is even stronger in the summer of 2011 in comparison to the spring of 2011 (
H 0 : 12  13  0 is rejected ( t  3.06 ) at the 5% level of statistical significance). Unlike the
2
Newfoundland study, seniors show a higher (  9  0 ) responsiveness than other age groups.
Another statistically significant finding is that as household income increases, other factors
being equal, the responsiveness to the real-time monitor decreases (  5  0 ). This relationship to
income was also found, but not at such a high level of statistical significance, in the British
Columbia study.
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
The resulting monthly kWh reductions due to the usage of the real-time monitor are shown in
Table 9. These are calculated by integrating the coefficients of the econometric model described
in Table 8 and mean characteristics of a typical household in the study before their usage of the
real-time monitor. The percentage changes calculated in Table 9 are calculated for a dwelling
with 2224 square feet, 2.9 residents and a household income of $104,690. The overall annual
reduction due to using the real-time-monitor is 8.9%; however, this varies considerably over the
year, ranging from a high of 16.9% reduction in June to a low of 3.2% reduction in September.
Overall for the year, there is a 913 kWh reduction for a household previously using 10264 kWh.
This reduction is statistically significant from zero with a prob value of 0.000. These extremely
tight variances for the annual reduction and for most months indicate a high degree of precision
in estimating the reduction attributable to the real-time monitor.
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 9: Estimated Reduction
Full Sample
(square footage: 2224, number of residents: 2.9, household income: $104,690)
January
Daily kWh Before
Real Time Monitor
33.4
Daily kWh After
Real Time Monitor
31.9
February
31.3
29.9
March
28.8
25.2
April
27.0
23.7
May
25.6
22.6
June
24.6
20.5
July
25.7
21.4
August
25.7
21.4
September
25.8
25.0
October
28.0
27.0
November
30.6
29.5
December
31.0
29.6
10264
9351
Annual
Percentage Change
(prob value)
-4.4
(0.033)
-4.3
(0.035)
-12.5
(0.000)
-12.1
(0.000)
-11.8
(0.000)
-16.9
(0.000)
-16.8
(0.000)
-16.8
(0.000)
-3.2
(0.083)
-3.6
(0.059)
-3.9
(0.048)
-4.4
(0.032)
-8.9
(0.000)
Nevertheless, there is a great diversity in responsiveness across households. The largest part of
the sample did not have electric heating and electric water heating. 49.6% of the sample did not
have electric heating, electric water heating and air conditioning. 15.2% of the sample had air
conditioning and no electric heating and no electric water heating. For this first group, with no
electric heating, no electric heating and no electric water heating, there is an annual reduction of
8.7% (see Table 10). However, for the non-electric heating and water heating households with
air conditioning the annual reduction decreases to 5.4% (see Table 11). This is mostly due to
reduced conservation in the summer. Like most of the other studies, such as those in Ontario,
Newfoundland, and Virginia, Table 12 shows that households with electric water heating (7.1%
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EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
of the sample) have much more scope for using the instantaneous information for electricity
reduction (-16.7%).
Finally, as shown in Table 13, for the households that heat their entire
house with electricity (17.6% of the sample) their overall reduction is 13.9% (a reduction of 1377
kWh annually). Here the percentage reductions range from -8.7% in October to -21.8% in June.
P a g e | 45
February 28, 2014
Appendix A-19 Attachment 5
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 10: Estimated Reduction
No Electric Heating, No Electric Water Heating, No Air Conditioning
(square footage: 2082 number of residents: 2.6, household income: $95,286)
Daily
HDD
Daily
CDD
0.00
Daily kWh
Before Real
Time
Monitor
27.5
Daily kWh
After
Real Time
Monitor
26.7
January
27.52
February
25.56
0.00
25.7
24.9
March
20.28
0.00
23.6
20.9
April
13.30
0.00
22.4
19.8
May
7.50
0.01
20.6
18.3
June
3.15
0.03
20.1
16.2
July
1.49
0.12
20.2
16.2
August
1.94
0.24
19.8
15.9
September
4.87
0.03
20.7
20.1
October
12.59
0.00
23.0
22.4
November
17.88
0.00
24.9
24.2
December
28.64
0.00
25.1
24.4
8324
7596
Annual
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February 28, 2014
Appendix A-19 Attachment 5
Percentage
Change
(prob value)
-2.9
(0.111)
-2.9
(0.111)
-11.5
(0.000)
-11.5
(0.000)
-11.5
(0.000)
-19.7
(0.000)
-19.7
(0.000)
-19.7
(0.000)
-2.9
(0.111)
-2.9
(0.111)
-2.9
(0.111)
-2.9
(0.111)
-8.7
(0.000)
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 11: Estimated Reduction
No Electric Heating, No Electric Water Heating, Air Conditioning
(square footage: 2465 number of residents: 3.0, household income: $124,150)
Daily
HDD
Daily
CDD
0.00
Daily kWh
Before Real
Time
Monitor
41.5
Daily kWh
After
Real Time
Monitor
40.4
January
27.52
February
25.56
0.00
39.0
38.0
March
20.28
0.00
36.5
32.4
April
13.30
0.00
33.0
29.2
May
7.50
0.01
32.9
29.2
June
3.15
0.03
35.0
33.1
July
1.49
0.12
36.1
34.1
August
1.94
0.24
37.7
35.6
September
4.87
0.03
33.8
32.9
October
12.59
0.00
34.3
33.4
November
17.88
0.00
37.5
36.5
December
28.64
0.00
42.0
40.9
13359
12639
Annual
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Appendix A-19 Attachment 5
Percentage
Change
(prob value)
-2.7
(0.134)
-2.7
(0.134)
-11.3
(0.000)
-11.3
(0.000)
-11.3
(0.000)
-5.4
(0.109)
-5.4
(0.109)
-5.4
(0.109)
-2.7
(0.134)
-2.7
(0.134)
-2.7
(0.134)
-2.7
(0.134)
-5.4
(0.014)
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 12: Estimated Reduction
Electric Water Heating
(square footage: 2653 number of residents: 3.8, household income: $97,012)
Daily
HDD
Daily
CDD
0.00
Daily kWh
Before Real
Time
Monitor
49.2
Daily kWh
After
Real Time
Monitor
42.2
January
27.52
February
25.56
0.00
41.1
35.4
March
20.28
0.00
37.6
29.9
April
13.30
0.00
37.1
29.8
May
7.50
0.01
32.8
26.7
June
3.15
0.03
28.7
22.0
July
1.49
0.12
30.7
23.6
August
1.94
0.24
29.4
22.5
September
4.87
0.03
33.1
29.6
October
12.59
0.00
35.5
31.3
November
17.88
0.00
42.3
37.0
December
28.64
0.00
41.7
35.7
13350
11116
Annual
P a g e | 48
February 28, 2014
Appendix A-19 Attachment 5
Percentage
Change
(prob value)
-14.2
(0.023)
-13.8
(0.025)
-20.6
(0.001)
-19.6
(0.002)
-18.7
(0.002)
-23.4
(0.000)
-23.2
(0.000)
-23.3
(0.000)
-10.4
(0.070)
-11.7
(0.047)
-12.6
(0.036)
-14.3
(0.022)
-16.7
(0.006)
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 13: Estimated Reduction
Electric Heating
(square footage: 2231 number of residents: 3.0, household income: $91,206)
Daily
HDD
Daily
CDD
0.00
Daily kWh
Before Real
Time
Monitor
32.2
Daily kWh
After
Real Time
Monitor
28.3
January
27.52
February
25.56
0.00
29.1
25.8
March
20.28
0.00
28.0
22.9
April
13.30
0.00
26.5
22.1
May
7.50
0.01
24.5
20.8
June
3.15
0.03
22.1
17.7
July
1.49
0.12
24.6
19.9
August
1.94
0.24
24.9
20.1
September
4.87
0.03
24.9
23.3
October
12.59
0.00
26.7
24.5
November
17.88
0.00
29.6
26.7
December
28.64
0.00
33.6
29.4
9936
8559
Annual
Percentage
Change
(prob value)
-12.1
(0.004)
-11.6
(0.004)
-18.2
(0.000)
-16.6
(0.000)
-15.2
(0.000)
-19.6
(0.000)
-19.2
(0.000)
-19.3
(0.000)
-6.3
(0.007)
-8.3
(0.003)
-9.7
(0.003)
-12.3
(0.004)
-13.9
(0.000)
The results described in Tables 9 through 13 are summarized in Figure 5 for comparing electricity
consumption reduction across categories.
P a g e | 49
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Appendix A-19 Attachment 5
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Figure 5: Electricity Consumption Reduction Estimate for Various Participant Categories
6.3.3 Extrapolation to population
The purpose of this section is to extrapolate the findings to the population levels for Calgary
and Edmonton based on the original population shares. Table 14 displays the comparison
between the sampling proportions (based on the Neyman stratification procedure) and the
population proportions. Due to the maximization of survey precision facilitated by the Neyman
allocation methodology, the sample weights depart from the population weights particularly
where interval variances are large4.
4
For example, households with electric heating possessing relatively large variances, would have
disproportionately high weights under the Neyman allocation methodology relative to the population
proportions. In this case, the extrapolation weights would downweight the higher sample representation
of electric heating households.
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Appendix A-19 Attachment 5
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 14: Population and Sample Proportions
Single Family Dwellings
kWh
Interval
Ranges
Sample
Proportion
of
Dwellings
Population
Proportion of
Dwellings:
Overall
0.147
0.163
0.335
0.205
0.130
Population
Proportion
of
Dwellings:
Calgary
0.139
0.155
0.333
0.211
0.140
Population
Proportion
of
Dwellings:
Edmonton
0.165
0.179
0.340
0.191
0.110
0-3,000
3,000-4,500
4,500-7,500
7,500-10,500
10,50018,000
>18,000
0.092
0.066
0.270
0.164
0.234
0.175
0.020
0.022
0.015
Using the population proportions, the monthly and annual estimated reductions are reported
for average dwellings in Calgary and Edmonton, Tables 15 and 16 show the impacts by month
and annually. For Tables 15 and 16, the annual percentage changes are -9.5% and -9.8% for
Calgary and Edmonton, respectively. Using the 2010 statistics regarding the number of RRO
(Regulated Rate Option) eligible households, the reductions in Tables 15 and 16 are blown up to
the Calgary and Edmonton populations. In summing the changes for Calgary and Edmonton,
the overall reduction is 9.7%. This is a higher percentage reduction than the sample impact
noted in Table 9. However, the sample is heavily weighted to larger households for sampling
efficiency reasons, and it appears that large consumption households show smaller percentage
reductions. In all, introduction of the real time monitor to all RRO eligible households would
result in a savings of 261,774 MWh in Calgary and 188,275 MWh in Edmonton, for a total
reduction of 450,049 MWh, or the equivalent of the output of a 51 MW power plant operating
continuously for a year. Monthly and annual estimates for all RRO eligible households in
Calgary and Edmonton are displayed in Tables 17 and 18, respectively.
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Appendix A-19 Attachment 5
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 15: Estimated Reduction
Calgary
(square footage: 1959, number of residents: 2.6, household income: $98,874)
January
Daily kWh Before
Real Time Monitor
23.1
Daily kWh After
Real Time Monitor
22.0
February
21.8
20.7
March
20.2
17.6
April
19.0
16.6
May
18.1
15.9
June
17.5
14.3
July
17.5
14.4
August
17.8
14.6
September
18.2
17.5
October
20.1
19.3
November
22.1
21.2
December
24.2
23.0
Annual
7292
6599
P a g e | 52
February 28, 2014
Appendix A-19 Attachment 5
Percentage Change
(prob value)
-5.0
(0.020)
-4.8
(0.022)
-12.9
(0.000)
-12.6
(0.000)
-12.3
(0.000)
-18.2
(0.000)
-18.1
(0.000)
-18.1
(0.000)
-3.6
(0.059)
-4.1
(0.039)
-4.4
(0.031)
-5.0
(0.019)
-9.5
(0.000)
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 16: Estimated Reduction:
Edmonton
(square footage: 1881, number of residents: 2.3, household income: $86,943
January
Daily kWh Before
Real Time Monitor
21.7
Daily kWh After
Real Time Monitor
20.6
February
19.8
18.8
March
18.7
17.4
April
16.8
16.3
May
15.6
13.6
June
15.5
12.6
July
15.8
12.8
August
16.1
13.0
September
16.0
15.3
October
17.5
16.7
November
18.9
18.0
December
22.2
21.1
Annual
6526
5884
P a g e | 53
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Appendix A-19 Attachment 5
Percentage Change
(prob value)
-4.9
(0.019)
-4.8
(0.020)
-13.1
(0.000)
-12.9
(0.000)
-12.8
(0.000)
-19.0
(0.000)
-18.9
(0.000)
-18.9
(0.000)
-4.3
(0.039)
-4.5
(0.028)
-4.6
(0.024)
-4.9
(0.019)
-9.8
(0.000)
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 17: Estimated Reduction (2010)
Calgary
January
MWh Before Real
Time Monitor
263,634
MWh After Real
Time Monitor
250,452
February
228,755
217,775
7arch
228,845
199,324
April
212,588
185,802
May
214,191
187,845
June
206,243
168,707
July
202,590
165,921
August
208,785
170,995
September
210,070
202,507
October
227,701
218,366
November
261,980
250,453
December
290,762
276,223
2,756,144
2,494,370
Annual
P a g e | 54
February 28, 2014
Appendix A-19 Attachment 5
Percentage Change
(prob value)
-5.0
(0.020)
-4.8
(0.022)
-12.9
(0.000)
-12.6
(0.000)
-12.3
(0.000)
-18.2
(0.000)
-18.1
(0.000)
-18.1
(0.000)
-3.6
(0.059)
-4.1
(0.039)
-4.4
(0.031)
-5.0
(0.019)
-9.5
(0.000)
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 18: Estimated Reduction (2010)
Edmonton
January
MWh Before Real
Time Monitor
193,790
MWh After Real
Time Monitor
184,294
February
160,372
152,674
March
160,302
139,302
April
146,339
127,461
May
145,798
127,136
June
140,599
113,885
July
146,293
118,644
August
144,989
117,586
September
142,407
136,283
October
153,655
146,741
November
173,187
165,220
December
199,379
189,609
1,907,110
1,718,835
Annual
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February 28, 2014
Appendix A-19 Attachment 5
Percentage Change
(prob value)
-4.9
(0.019)
-4.8
(0.020)
-13.1
(0.000)
-12.9
(0.000)
-12.8
(0.000)
-19.0
(0.000)
-18.9
(0.000)
-18.9
(0.000)
-4.3
(0.039)
-4.5
(0.028)
-4.6
(0.024)
-4.9
(0.019)
-9.8
(0.000)
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Finally, Table 19 compares the results of the Alberta study with other North American studies.
The overall reduction is certainly in the range of all the other studies. Like the majority of the
other studies, the largest reductions occur for households with electric water heating. The
lower percentage reductions in electricity usage for the summer months of households with air
conditioning, is consistent with the results of the South Carolina study. Important demographic
determinants of responsiveness such as income, education and presence of senior citizens in the
Alberta study were also important factors in the other studies.
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Appendix A-19 Attachment 5
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 19: Comparison of Study Results
Study
Alberta
Average
Reduction
9.7%
2010-2011
310
study
participants
Hydro One
6.5%
2004 – 2005
Over 400 study
participants
British
Columbia
Reductions for
Specific
Subgroups or
Seasons
Higher
reductions
for
electric
water
heating (16.7%)
Lower
percentage
reductions for air
conditioning
Highest savings
for electric water
heating (16.5%)
Persistence of
Responsiveness
Important
Demographic
Factors
Reductions
increased slightly
during study
Senior
citizens
showed
increased
responsiveness
Education
income
important
Consultation of
Monitor
1+times/day
32.9%
and
Yes
38.9%
No reduction for
electric heating
2.7%
9.3%
winter
reduction
Yes
Education
seasonality
and
38.6%
18.1%
Electric heating
showed
19.8%
reduction
Yes
Senior
citizens
showed
less
responsiveness
54.1%
Some reduction in
responsiveness as
study progressed
Education
71.5%
Yes
Number
household
members
education
2005-2006
100
study
participants
Newfoundland
and Labrador
2005-2006
100
study
participants
Dominion
Virginia Power
3.5%
2008-2009
1000
study
participants
Santee Cooper
South Carolina
6.0%
22.5% reduction
for electric water
heating
No
reductions
for
electric
heating in winter
Highest
reductions
in
summer
Highest
reductions
in
spring and fall
2009-2010
200
study
participants
P a g e | 57
February 28, 2014
Appendix A-19 Attachment 5
of
and
41.6%
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2014-2015 PBR Capital Tracker
7. Participant Attitudes, Perceptions and Technical Difficulties with the
Real-Time Monitor
7.1 Participant’s attitudes and perceptions
This chapter reviews the main group participants’ attitudes toward the real-time monitor and
their perceptions of their behaviour, as revealed in the third and final survey administered in
May of 2011, after the participants have been using the monitor for at least one year.
Comparisons are also made to the responses to participants’ perceptions in the middle of the
study, as revealed in the surveys administered in December of 2010.
Table 20 indicates a somewhat neutral response regarding whether the real-time monitor made
a difference in their homes. According to final survey results, 48.7% of the participants felt the
monitor made a difference in their homes. This percentage is lower than that found in the
second survey (56.4%) and is lower than that found in Santee Cooper of South Carolina (69.6%)
and Dominion Virginia Power (65.4%) and a lower than those found in the earlier Canadian
studies (e.g., 75.0 % and 72.1% in Newfoundland and British Columbia, respectively). As noted
in Table 21, 71.2.0% of the sample felt the real-time monitor heightened their awareness and
actions toward energy conservation in the home. This is a little lower than that found in South
Carolina (80.0%). When asked how easy it was to learn how to use the real-time electricity
monitor, 79.4% ranked the monitor 3 or greater, with 5 indicating very easy and 1 indicating not
very easy. Detailed results are shown in Table 22. When asked how useful they found the
monitor in helping them conserve energy (see Table 23), 72.2% of the participants ranked the
monitor 3 or greater on a scale of 0 to 5. This is almost identical to that in South Carolina
(76.1%) and Dominion Virginia Power (74.4%).
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February 28, 2014
Appendix A-19 Attachment 5
EPCOR Distribution & Transmission Inc.
2014-2015 PBR Capital Tracker
Table 20: Customer Perception of Whether the Monitor Made a Difference in Their Homes
Did the monitor make a difference in your home?
Per cent of Participants
Heated Entirely
Response
by Electricity
Other
Total
Yes
41.4
50.0
48.7 (56.4)
No
58.6
50.0
51.3 (43.6)
29
162
191 (179)
5
Sample
Number
Table 21: Heightened Awareness and Actions towards Energy Conservation in the Home
Did the monitor heighten your awareness and actions towards energy
conservation in the home?
Per cent of Participants
Heated Entirely
Response
by Electricity
Other
Total
Yes
65.5
72.2
71.2 (73.2)
No
34.5
27.8
28.8 (26.8)
29
162
191 (179)
Sample
Number
5
Numbers in parentheses indicate results from the second questionnaire administered in December,
2010.
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Appendix A-19 Attachment 5
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2014-2015 PBR Capital Tracker
Table 22: Ease in Learning How to Use the Real-Time Monitor
Ease in Learning How to Use Monitor
Per cent of Participants
Heated Entirely
by Electricity
Other
Total
easy)
14.3
6.2
7.4
2
21.4
11.8
13.2
3
39.3
41.0
40.7
4
10.7
27.3
24.9
5 (very easy)
14.3
13.7
13.8
28
161
189
Response
1 (not very
Sample
Number
Table 23: Customer Perception of the Usefulness of the Monitor
Usefulness of Monitor
Per cent of Participants
Heated Entirely
by Electricity
Other
Total
useful)
14.3
7.5
8.6 (7.4)
2
25.0
18.2
19.3 (16.5)
3
21.4
44.0
40.6 (36.4)
4
28.9
23.3
24.1 (31.8)
10.7
6.9
7.5 (7.9)
28
159
187 (176)
Response
1 (not at all
6
5 (very
useful)
Sample
Number
6
Numbers in parentheses indicate results from the second questionnaire administered in December,
2010.
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Appendix A-19 Attachment 5
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2014-2015 PBR Capital Tracker
Table 24 displays the average number of people in the household who changed their behaviour
since the start of the study. Among all participants, the average number in a house who
changed their behaviour was 1.6. This is an increase from that observed at the midpoint of the
study (1.1).
This behavioural change is consistent with the increase in specific actions
documented later. 47.9% of the study participants shared their experiences with family
members and 45.2% shared their experiences with friends. (Both shares are almost identical to
those of South Carolina.) 43.3% of the participants would recommend the monitor to a friend.
22.9% said they would not, and 33.9% were uncertain. While the proportion of participants
who would recommend the monitor to a friend are a little lower than those reported in the
South Carolina and Virginia study, generally these shares are comparable to the percentages
recorded in South Carolina and Virginia.
Table 24: Behavioural Changes since the Beginning of the Study
Behaviour Change Since Start of Study
Number of Individuals
Heated Entirely
by Electricity
Other
Total
1.9
1.5
1.6 (1.1)
24
127
151 (209)
Average
Number
7
Sample
Number
7
Numbers in parentheses indicate results from the second questionnaire administered in December,
2010.
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Appendix A-19 Attachment 5
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2014-2015 PBR Capital Tracker
Table 25 provides an indication of how often participants consulted their real-time monitor.
32.9% of the participants consulted the monitor either daily or multiple times per day. This is
lower than the 40.8% of the participants consulted the monitor either daily or multiple times per
day, observed at the midpoint of the study. This is a little lower than that observed in Ontario
and British Columbia (38.9% and 38.6%, respectively) and much lower than that observed in
South Carolina, Newfoundland and Virginia (41.6%, 54.1% and 71.5%, respectively).
Nevertheless, it should be noted that multiple consultation throughout the study does not
necessarily lead to conservation. In fact, consultations at the beginning of the study could lead
to significant changes in conservation behaviour, but once these behavioural changes occur,
further consultations may not be necessary.
Table 25: Frequency with which Customers Reported Checking the Monitor
How often do you check the PowerCost monitor?
Per cent of Participants
Heated Entirely
Response
by Electricity
Other
Total
Rarely
44.8
32.7
34.6 (22.9)
20.7
24.1
23.6 (24.6)
Weekly
10.3
8.6
8.9 (11.7)
Daily
20.7
18.5
18.8 (22.4)
3.4
16.0
14.1 (18.4)
29
162
191 (179)
8
1-2 Times
Weekly
3-5 Times
Multiple
Times Per
Day
Sample
Number
8
Numbers in parentheses indicate results from the second questionnaire administered in December,
2010.
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Appendix A-19 Attachment 5
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2014-2015 PBR Capital Tracker
Table 26 examines whether the frequency of consulting the monitor has decreased or increased
during the study. 46.3% indicated their consultation decreased, 46.3% indicated their
consultation stayed the same and 7.4% indicated their consultation increased.
Table 26: Customer Perception
of How Their Frequency of Checking the Monitor Has Changed Since Installation
Since the PowerCost monitor was first installed, the frequency which
you consult the monitor has:
Per cent of Participants
Heated Entirely
Response
by Electricity
Other
Total
Decreased
44.8
46.6
46.3 (35.8)
Same
48.3
46.0
46.3 (54.9)
Increased
5.9
7.5
7.4 (9.3)
29
161
190 (173)
9
Stayed the
Sample
Number
The surveys also analyzed participants’ perception of their savings. Overall, Table 27 shows
74.0% of the participants see their expected savings would be less than 5%. This figure is down
a little from that observed in the December, 2010 survey (79.9%). 21.7% of the participants felt
their savings would be between 5% and 15%. Similarly, the majority of Dominion Virginia
Power expected their savings to be less than or equal to 5%. Nevertheless, there expectations
are below the conservation actually achieved. As noted in Chapter 6, the average response on
average was approximately 9%.
9
Numbers in parentheses indicate results from the second questionnaire administered in December,
2010.
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Appendix A-19 Attachment 5
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Table 27: Participants’ Estimation of Anticipated Savings
Households’ perceived expected savings
Per Cent of Participants
Per Cent of
Heated Entirely
Participants
by Electricity
Other
None
43.5
49.6
Up to 5
34.8
23.5
25.4 (39.7)
5 to 10
17.4
22.6
21.7 (16.2)
10 to 15
0.0
3.5
2.9 (3.9)
15 to 20
4.3
0.9
1.4 (0.0)
Greater than 20%
0.0
0.0
0.0 (0.0)
Sample Number
23
115
138 (179)
Total
48.6 (40.2)
10
How did the participants conserve as a result of using the real-time monitor? Their responses
are recorded in Table 28. The five most popular actions are to turn lights off when not in use,
reduce the use of their dishwasher, turn TV/computer/other appliances off when not in use,
reduce the use of their dishwasher, to adjust the temperature down or up (depending on the
season), and reduce the use of the clothes dryer.11 These responses, although in different
order are very similar to other real-time electricity monitor studies. A comparison was also
made to the change in behaviour recorded at the midpoint of the study (December, 2010). In
comparing the total percentages with those in recorded in December, noted in parentheses of
the final column, for 18 of the 20 categories, the conservation measures undertaken increased
through the duration of the study. This helps explain the statistical findings in Chapter 6
showing that actual conservation was higher in the final months of the study compared to the
earlier months. This is also consistent with the earlier observation that the monitor contributes
significantly to a heightened awareness and actions towards energy conservation.
10
Numbers in parentheses indicate results from the second survey administered in December, 2010.
11
Even households without electric heating may understand that the furnace fan uses electricity in the
winter, regardless of whether the main heating fuel is electricity or not.
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Appendix A-19 Attachment 5
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2014-2015 PBR Capital Tracker
Table 28: Altered Consumption Behaviour Reported by Participants As a Result of Monitor Use
How have you altered your consumption behaviour as a result of using the Real-Time Electricity monitor?
Per Cent of Participants
Heated
Entirely by
Response
Electricity
Other
Total
Turn Lights Off When Not in Use
20.0
19.4
Reduced Use of Dishwasher
13.0
15.5
15.2 (14.4)
Turn TV/Computer/Other Off When Not in Use
12.0
14.0
13.7 (16.7)
Adjusted Temperature Down/Up
16.0
13.3
13.7 (12.1)
Reduced Use of Clothes Dryer
4.3
14.4
13.0 (10.3)
Cold Water Wash for Laundry
28.0
10.3
12.9 (7.5)
Installed new ENERGY STAR Appliances
9.1
12.0
11.6 (7.5)
Lowered Temperature on Clothes Dryer
9.1
9.6
9.5 (6.9)
Upgraded Windows/Doors
5.0
10.1
9.4 (6.9)
Used Cold Cycle/Short Cycle on Dishwasher
13.0
8.5
9.1 (8.0)
Used Compact Fluorescents
8.7
8.8
8.8 (11.5)
Machine
10.0
7.8
8.0 (7.5)
Added/Replaced Caulking/Weatherstripping
0.0
9.0
7.8 (6.9)
Programmable Thermostat
8.3
7.2
7.4 (3.4)
Air Dry Setting on Dishwasher
9.5
6.5
6.9 (6.3)
Used Dimmers/Timers on Lights
9.5
6.3
6.7 (4.6)
Installed Low Flow Showerhead
5.0
5.0
4.9 (1.7)
Increased Wall/Ceiling Insulation
0.0
5.4
4.7 (1.7)
Insulating Wrap
0.0
1.5
1.3 (1.1)
Had an Energy Audit on Home
0.0
1.5
1.3 (0.6)
12
19.4 (16.7)
Purchased High Efficiency Front Load Washing
Wrapped Hot Water Tank or Pipes with
Finally, Table 29 lists the features of the monitor that participants most used. The five most
popular features were cost per kilowatt-hour, outdoor temperature, the total dollars spent, the
kWh and the kW used.
12
Numbers in parentheses indicate results from the second questionnaire administered in December,
2010.
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Table 29: Participant Indication of Which Monitor Features They Found Useful
Features found useful on the Real-Time Electricity Monitor
Per cent of participants
Heated entirely by
Response
electricity
Other
Total
$Dollars/Hr
55.2
55.6
55.5
Temperature
48.3
49.4
49.2
$Dollars Total
27.6
25.3
25.7
KWHrs
34.4
22.2
24.1
KW
24.1
23.9
24.0
24 Min/Max
0.0
12.5
8.0
Spinning Disk
0.0
6.3
4.0
Signal Strength
11.1
0.0
4.0
Outdoor
7.2 Technical difficulties with the monitor
With respect to study enrolment, enrolment and solicitation were considered to be clear for
94.8% of the participants. 87.4% of the participants felt it was easy to install the Real-Time
Electricity Monitor. 84.3% indicated the instructions were easy to follow.
With respect to participation in the study, customers were asked to rank the various benefits of
participation from 1 to 8, with 1 being the most important benefit. Table 30 provides the
average rank of the top five features (excluding the bottom three: help prevent future
shortages/blackouts, can keep the monitor at the end of the study, other category). The most
important benefit was that with more information available to the customer, more informed
choices could be made. The second most important benefit was the ability to conserve energy
and minimize the cost of electricity.
With respect to battery replacement, by December (about six months into the study), 52.0% of
the participants had replaced the batteries with an average replacement at about 3.2 months. Of
those who replaced the batteries, 93.6% indicated the batteries were easy to replace.
With respect to technical difficulties of the monitor, 20.5% (35 out of 171) of study participants
had technical difficulties with the real-time electricity monitor within the first six months of the
study. Of those participants who recorded problems, 77.1 % (27 out of 35) were left unresolved.
Among the reported technical difficulties, 11 participants indicated that the monitor goes into
sleep mode from time to time. The second most discussed problem (by 4 participants) was that
the monitor did not work in rainy or cold weather. The third most discussed problem (by 3
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participants) was the inaccuracy of the monitor (either temperature, kW reading or hourly rate).
Two other reported problems were the lack of a strong and consistent signal from the meter to
the monitor (by 3 participants) and the device getting knocked off the meter in a hail storm (by
2 participants).
Table 30: Benefits of Participation in the Study
What are the major benefits for your participation in the
Real-Time Electricity Monitor Study?
Response
Average Rank
More informed consumption choices
Ability
to
conserve
energy
2.69
and
2.94
minimize cost of electricity bill
Instantaneous Feedback
3.08
Assist with environmental conservation
3.54
Information features of monitor
3.80
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8. Conclusions
The Alberta Real-Time Electricity Consumption Monitoring Study commissioned by the
Government of Alberta confirms that real-time feedback of energy consumption is effective in
promoting conservation. The results are statistically significant and support the hypothesis that
real-time monitors encourage conservation. This is based on following a significant number of
study participants over three years. The analysis controlled for a wide diversity of weather,
heating, water heating and appliance configurations, and a wide variation of demographic
characteristics.
Overall, the reduction due to the availability of instantaneous feedback is approximately 9.7%.
On average, for a household using approximately 7,000 kWh annually, the reduction
attributable to the real-time monitor is approximately 675 kWh. This reduction is statistically
significant at the 99% confidence level. Using 2010 population statistics for RRO eligible
households, the projected savings attributable to using real-time instantaneous feedback for
Calgary and Edmonton would be 450,049 MWh or the equivalent of the output of a 51 MW
power plant operating continuously for a year.
Before going into more detailed conclusions, it should be noted that similar studies have been
undertaken by Dr. Mountain in other regions. However, Alberta’s power market is structured
to be competitive, thus lacking an integrated utility partner that Dr. Mountain could work with
as in other markets. AITF, as the project manager, negotiated a special exemption for this
project with the Market Surveillance Administrator (MSA), so that both wires companies and
retailers (RRO providers) could work together on this project. AITF ultimately took on the
responsibility for protecting all of the participant and control subject consumption data that was
utilized in this study. AITF put in place a system that allowed for the seamless transfer of data
from the companies involved to Dr. Mountain, while protecting individual consumer data.
AITF appreciates the support of the MSA as well as ENMAX and EPCOR in supporting this
project. Battle River REA was also prepared to work with AITF in a similar fashion. This level of
cooperation contributed to the operational success of this project.
AITF also took steps to ensure a smooth deployment and operation of the Blue Line PowerCost
monitors. AITF secured technical support from the vendor to support the installation and
operation of devices. AITF also trialed the monitors in each of the target wires territories along
with training session for wires’ company call centre staff. These measures contributed to the less
than 10% drop-out rate at the by the end of the project. Furthermore, all of the participants who
withdrew from the study belonged to the senior’s age profile. It is believed that the project
withdrawal rate could have been even lower if the wires companies had installed the monitors
instead of the participants. The trials and training also revealed that PowerCost monitor was
unsuitable for BRREA’s unique situation (electricity meter installed on an electricity pole sited
at a large distance from the participant households) which could threaten the success of the
project. Consequently, BRREA decided to withdraw from the project but was open to
reconsidering the study at a later date.
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With the study only being conducted in Edmonton and Calgary; therefore, the specific results
should be considered as mostly applicable in an urban setting. The study found higher
percentage responsiveness to surveys during the spring and summer months. For those
without air conditioning the largest percentage reductions in electricity consumption are in the
summer months but for those with air conditioning the largest percentage reductions in
electricity consumption are in the spring months. Furthermore, those with electric water
heating show the largest percentage reductions in that consumption. Their annual reductions
are approximately 17%. For those with electric heating as their main source of heating, their
electricity consumption reductions due to instantaneous feedback are approximately 14%.
It was also found that income, education and household age profile significantly affect
responsiveness to the real-time monitor. While households with high income show lower
responsiveness, those with higher levels of education and households with a higher proportion
of seniors show significantly more electricity conservation attributable to the monitor.
As the study proceeded, there was no reduction in conservation behaviour. In fact there is
increased conservation in the spring and summer of the latter part of the study. As the study
progressed the number of individuals in the household who changed their conservation
behaviour increased from 1.1 at the midpoint of the study to 1.6 by the end of the study.
Furthermore, the number of conservation measures undertaken increased through the duration
of the study.
Overall the qualitative feedback from participants was positive. Participants were generally
very pleased with the performance and usefulness of the real-time monitor in helping them
reduce energy consumption and manage their costs. It was reported that:




79% of the participants indicated the real-time monitor was relatively easy to use
87% felt it was easy to install the real-time monitor
72% of the participants felt the monitor was useful
71% participants felt that using the real-time monitor generally heightened their
awareness and actions toward energy conservation
Among the most enumerated reasons for using the monitor was helping in making more
informed consumption choices, and its assistance in conserving energy and minimizing the
energy bill. Overall, the most popular actions are to turn lights and electronic equipment off
when not in use, to reduce the use of the dishwasher and clothes dryer, and to adjust the
dwelling temperature.
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In this study, no price and/or conservation incentives accompanied the usage of the real-time
monitor. Therefore, the conservation results observed in the study are interpreted as the
minimum to be garnered with instantaneous feedback in the absence of other possible
conservation incentives. The average power consumption reduction of 9.7% for this study was
in the middle of a range compared with other Dr. Mountain studies (2.7% in British Columbia
and 18.1% in Newfoundland and Labrador).
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Appendices
Appendix 1: Pre-recruitment Introductory Mailer
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Appendix-2: Qualification Questions for Household Recruitment
Qualification Questions for the Participant
Group
No.
1
2
3
4
5
6
Qualification Question
Qualifying
Answer
Reason or Logic
Are you interested and willing to
become a participant in this study?
Do you reside at "insert participant's
address"?
Yes
Will you be away from your home for
more than 3 consecutive weeks
anytime within the next year?
Do you plan to move or sell your house
during the next year?
Do you agree to complete three
surveys during this project?
Do you agree to replace the batteries in
the sensor unit, which will attach to the
electricity meter, 6 to 8 months into the
project? Replacement batteries will be
supplied by the project.
No
Need to record verbal consent that the participant is
willing to participate.
Assumption that if this individual is listed as our
customer and resides at this address, then this
individual will be incented to modify their
consumption behaviour.
Participants will not be able to monitor their
electricity use when away from their home, skewing
the results of this study.
We need a continuous "one-person" "one-home"
data for one complete year in this project.
Completion of the three surveys is integral to the
quality and completeness of this project.
The batteries that come with the monitor are good
for 8-12 months. However, Alberta winters may
make the batteries in the sensor unit perform less
efficiently than desired and will need to be
replaced. Explain that the customer will be sent a
pair of replacement batteries for the sensor unit
sometime before the onset of winters. The batteries
in the hand-held display unit should be good for the
entire duration of the project.
The Blue Line monitor's sensor unit has to be
attached to the electricity meter by tightening a
metal collar around the display glass. Physical
access to the electricity meter is necessary to
complete this simple step.
The attachment of the sensor unit to the electricity
meter and the insertion of batteries into the sensor
unit require following simple steps and the use of a
screw driver.
Need to record verbal consent that the participant is
willing to allow EPCOR to share their consumption
information to compile with the Code of Conduct
Regulation and Personal Information and Privacy
Act.
Yes
No
Yes
Yes
7
Do you have safe and easy access to
your electricity meter?
Yes
8
Are you able to use basic tools such as
a screwdriver and follow simple
installation instructions?
Yes
9
This project will require EPCOR to
share your electricity consumption
information from the previous two years
as well as over the course of the study
with Alberta Innovates-Technology
Futures. Do you consent to EPCOR
sharing this information with Alberta
Innovates - Technology Futures, for the
purposes of this study?
Do you have access to computer,
internet and email, and prefer
communication via email?
Yes
10
?
If yes, explain them that they will receive email
notifications for participating in the surveys and that
it will be their responsibility to check their emails
regularly for the duration of the study. Obtain their
email IDs at this point.
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Qualification Questions for the Control
Group
No.
Qualification Question
Qualifying
Answer
Reason or Logic
1
Are you interested and willing to
become a participant in this study?
Do you agree to complete three surveys
during this project?
This project will require <Company> to
share your electricity consumption
information from the previous two years
as well as over the course of the study
with Alberta Innovates-Technology
Futures. Do you consent to
<Company> sharing this information
with Alberta Innovates - Technology
Futures, for the purposes of this study?
Do you reside at "insert participant's
address"?
Yes
Need to record verbal consent that the participant is
willing to participate.
Completion of the three surveys is integral to the
quality and completeness of this project.
Need to record verbal consent that the participant is
willing to allow <Company> to share their
consumption information to compile with the Code of
Conduct Regulation and Personal Information and
Privacy Act.
Will you be away from your home for
more than 3 consecutive weeks anytime
within the next year?
Do you plan to move or sell your house
during the next year?
Do you have access to computer,
internet and email, and prefer
communication via email?
No
2
3
4
5
6
7
Yes
Yes
Yes
No
?
Assumption that if this individual is listed as our
customer and resides at this address, then this
individual will be incented to modify their
consumption behaviour.
Participants will not be able to monitor their
electricity use when away from their home, skewing
the results of this study.
We need a continuous "one-person" "one-home"
data for one complete year in this project.
If yes, explain them that they will receive email
notifications for participating in the surveys, receive
surveys electronically, and that it will be their
responsibility to check their emails regularly for the
duration of the study. Obtain their email IDs at this
point.
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Appendix-3: Fact Sheets for the Alberta Government Website
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Appendix-4: Project Welcome Letters
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Appendix-5: Gift Card Letter
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Appendix-6: Battery Mail-out Letter
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Appendix-7: Survey Invitation Letter
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Appendix-7A: Sample Survey for Participants
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Appendix-7B: Sample Survey for Control Group
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5.0 REFERENCES
Beach, Charles M. and James G. MacKinnon (1978) “A Maximum Likelihood Procedure for
Regression with Autocorrelated Errors,” Econometrica, 46, 51-58.
Dean C. Mountain, “The Impact of Real-Time Feedback on Residential Electricity Consumption:
The Hydro One Pilot,” Hydro One, March, 2006.
Dean C. Mountain, “Real-Time Feedback and Residential Electricity Consumption: British
Columbia and Newfoundland and Labrador Pilots,” CEA Technologies Inc. and Natural
Resources Canada, June, 2007.
Dean C. Mountain, “Conservation and Customer Perceptions: The Power Cost Monitor Pilot of
Dominion Virginia Power,” Dominion Virginia Power, January, 2010.
Dean C. Mountain, “Conservation and Customer Perceptions: The Real Time Monitor Pilot of
Santee Cooper,” Santee Cooper, December, 2010.
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