B-2

Larg

e G

ener

al S

ervi

ce (L

GS

) Rat

e A

pplic

atio

n La

rge

Gen

eral

Ser

vice

(LG

S) R

ate

App

licat

ion

Tech

nica

l Wor

ksho

pTe

chni

cal W

orks

hop

Nov

embe

r 6, 2

009

Nov

embe

r 6, 2

009

2

Tech

nica

l Wor

ksho

p O

bjec

tives

Tech

nica

l Wor

ksho

p O

bjec

tives

•O

rient

atio

n to

the

appl

icat

ion

lay-

out a

nd fo

rmat

•O

verv

iew

of w

hat B

C H

ydro

is p

ropo

sing

•O

utlin

e th

e ke

y as

sum

ptio

ns u

sed

in th

e ap

plic

atio

n•

Ove

rvie

w o

f the

MG

S a

nd L

GS

Acc

ount

Too

ls

3

Age

nda

1)A

pplic

atio

n O

rgan

izat

ion

2)P

ropo

sed

Larg

e G

ener

al S

ervi

ce (L

GS

) Rat

e3)

Pro

pose

d M

ediu

m G

ener

al S

ervi

ce (M

GS

) Rat

e4)

LGS

Cus

tom

er E

xam

ples

5)O

verv

iew

of A

ccou

nt T

ools

6)C

onse

rvat

ion,

Pric

ing

Prin

cipl

es a

nd A

ssum

ptio

ns7)

Adm

inis

trativ

e, Im

plem

enta

tion

and

Eva

luat

ion

Det

ails

8)B

CU

C R

egul

ator

y Ti

met

able

4

Org

aniz

atio

n of

the

App

licat

ion

Tabl

e of

Con

tent

s

Cha

pter

1 –

App

licat

ion

Cha

pter

2 –

Dire

ct T

estim

ony

of L

isa

Col

tart

Cha

pter

3 –

Dire

ct T

estim

ony

of S

ylvi

a vo

n M

inde

nC

hapt

er 4

– D

irect

Tes

timon

y of

Ren

Ora

nsC

hapt

er 5

– D

irect

Tes

timon

y of

Bob

Ste

ele

5

Org

aniz

atio

n of

the

App

licat

ion

… c

ontin

ued

App

endi

ces

A

ELG

S T

ariff

Pro

visi

ons

B

ELG

S C

lass

Cha

ract

eris

tics

C

Com

paris

on o

f TS

R, R

IB, L

GS

and

MG

SD

C

usto

mer

Con

sulta

tion

E

Pha

se 1

– C

usto

mer

Eng

agem

ent R

epor

tF

P

hase

2 –

Cus

tom

er E

ngag

emen

t Rep

ort

G

Impl

emen

tatio

nH

S

urve

y of

Gen

eral

Ser

vice

Rat

esI

E

valu

atio

n of

Alte

rnat

ive

Gen

eric

Rat

e S

truct

ures

J

Seg

men

tatio

nK

B

asel

ine

Det

erm

inat

ion

L

LG

S B

ill V

olat

ility

M

MG

S D

esig

n A

ltern

ativ

esN

M

GS

Pric

ing

Met

hodo

logy

O

LG

S P

ricin

g M

etho

dolo

gyP

C

onse

rvat

ion

Est

imat

ing

Met

hodo

logy

Q

MG

S a

nd L

GS

Mod

ellin

g A

ssum

ptio

nsR

D

raft

Pro

cedu

ral O

rder

S

Dra

ft Fi

nal O

rder

T

Dra

ft Ta

riff S

heet

s

6

Key

Pha

ses

of C

usto

mer

Con

sulta

tion

Figu

re D

-1

7

Exi

stin

g LG

S C

lass

Ave

rage

Ele

ctric

ity R

ate*

•Th

e ex

istin

g LG

S (E

LGS

) ave

rage

ele

ctric

ity ra

te (b

ased

on

tota

l mon

thly

bill

of

ene

rgy,

dem

and

and

basi

c ch

arge

s) s

how

s tw

o cl

ear p

atte

rns:

•C

usto

mer

s be

low

150

KW

see

an

aver

age

rate

that

dec

lines

•C

usto

mer

s ab

ove

150

KW

see

an

aver

age

rate

that

is re

lativ

ely

flat

* B

ased

on

F200

8 en

ergy

rate

s

Figu

re 3

– 4

Ave

rage

Ele

ctric

ity R

ate

8

Seg

men

t Exi

stin

g C

lass

into

Med

ium

and

Lar

ge G

SS

egm

ent E

xist

ing

Cla

ss in

to M

ediu

m a

nd L

arge

GS

Con

serv

atio

n R

ates

cur

rent

ly in

pla

ce.

Flat

Rat

eD

esig

n(P

hase

-in)

Two-

Part

Des

ign

(Pha

se-in

)

(35-

150

kW)

(> 1

50 k

W)

% re

pres

ent p

ropo

rtio

n of

BC

Hyd

ro’s

do

mes

tic lo

ad (2

009)

9

Gen

eric

Tw

o-P

art E

nerg

y R

ate

Stru

ctur

e

Figu

re 2

- 2

10

Key

Des

ign

Feat

ures

of t

he B

CH

Tw

o-P

art R

ate 1

4

32

Figu

re 3

- 6

11

Mon

thly

, For

mul

aic,

3-Y

ear R

ollin

g A

vera

ge B

asel

ines

Figu

re 3

- 5

12

Pric

e Li

mit

Ban

ds

•B

ill im

pact

s …

sam

e co

nsum

ptio

n; d

iffer

ent r

ate

stru

ctur

es•

Bill

vol

atili

ty …

sam

e ra

te s

truct

ure;

diff

eren

t con

sum

ptio

n

Pric

e Li

mit

Ban

ds:

•P

ropo

sed

at 8

0:12

0% o

f Bas

elin

e

•kW

h ch

ange

s fro

m B

asel

ine

outs

ide

of th

ese

band

s w

ill b

e ch

arge

d at

the

appr

opria

te P

art O

ne ra

te

•Est

imat

e th

at ~

80%

of L

GS

bill

s w

ill re

mai

n w

ithin

thes

e ba

nds

13

Ano

mal

y R

ule

(Exa

mpl

e: C

alcu

latin

g H

BL

for J

anua

ry 2

015)

Con

sum

ptio

n 70

,000

kW

h

Con

sum

ptio

n 10

0,00

0 kW

h

Con

sum

ptio

n 30

,000

kW

h

Jan

2012

Jan

2013

Jan

2014

Less

than

hal

f the

co

nsum

ptio

n of

nex

t lo

wes

t mon

th (J

an 2

012)

Janu

ary

2014

(low

est u

se is

<50

% o

f nex

t low

est m

onth

(Jan

uary

201

2),

ther

efor

e is

excluded

from

the

base

line

calc

ulat

ion

As

a re

sult,

Jan

uary

201

5 H

BL

= (7

0,00

0+10

0,00

0)/2

= 8

5,00

0 kW

h

Con

sum

ptio

n

Tabl

e 1

- 1

14

Tran

sitio

nal F

eatu

res

of th

e Tw

o-P

art R

ate

1

2

Figu

re 3

- 6

15

Initi

al B

asel

ine

for t

he T

wo-

Par

t Rat

e

Figu

re 3

- 8

16

Pha

se-In

to L

RM

C

Fisc

al P

erio

dPa

rt-2

Ene

rgy

Rat

e (c

ents

/kW

h)

F201

1 an

d 20

126.

88

F201

39.

42

Tabl

e 3-

2 P

art-2

Ene

rgy

Rat

e

LRM

C P

rices

In V

ario

us R

ate

Stru

ctur

es:

•TS

R T

ier 2

pric

e:

7.36

cen

ts/k

Wh

•RIB

Ste

p 2

pric

e:

8.27

= 7

.36

cent

s/kW

h x

loss

es•L

GS

Par

t 2 p

rice:

9.

42 =

7.3

6 ce

nts/

kWh

x in

flatio

n x

loss

es

17

Two-

Par

t Rat

e E

xam

ple

Exa

mpl

es o

f cha

nges

to a

cus

tom

er’s

mon

thly

ene

rgy

porti

on o

f the

ir bi

ll un

der t

he tw

o-pa

rt ra

te.

Cus

tom

er h

as

base

line

of 1

60,0

00 k

Wh

for t

he m

onth

(ave

rage

kW

h fo

r th

e LG

S c

lass

). S

ituat

ions

illu

stra

ted:

•Act

ual u

se =

bas

elin

e•U

se 5

% le

ss th

an b

asel

ine

•Use

5%

mor

e th

an b

asel

ine

Usi

ng F

2011

tarif

f rat

es.

18

Two-

Par

t Exa

mpl

e –

Act

ual U

se =

Bas

elin

e

F11

Pric

es

Ener

gy C

harg

ekW

hce

nts

/ kW

hEn

ergy

$Fi

rst 1

4,80

0 kW

h14

,800

8.18

1,21

1$

Al

l add

ition

al k

Wh

145,

200

3.

94

5,72

1$

160,

000

To

tal E

nerg

y B

ill ($

)6,

932

$

F11

Pric

es

Part

1: B

asel

ine

Ener

gy C

harg

ekW

hce

nts

/ kW

hEn

ergy

$Fi

rst 1

4,80

0 kW

h14

,800

8.17

1,

209

$

Al

l add

ition

al B

asel

ine

kWh

145,

200

3.

93

5,70

6$

160,

000

Pa

rt 1

Ene

rgy

Bill

6,91

6$

Part

2 :

Ener

gy (C

redi

t) or

Cha

rge

Ener

gy d

iffer

ence

from

Bas

elin

e (+

20%

)0

6.68

-

$

En

ergy

(bel

ow) 8

0% o

r abo

ve 1

20%

of B

asel

ine

03.

93

-

0

Part

2 E

nerg

y B

ill-

$

Tota

l Ene

rgy

Bill

6,91

6$

Uni

t Cos

t (¢/

kWh)

4.3

Prop

osed

Tw

o-Pa

rt R

ate

Stru

ctur

e m

inus

Exi

stin

g LG

S R

ate

Stru

ctur

e ($

)(1

6)$

No

Part

2 C

harg

e or

Cre

dit

Cur

rent

LG

S R

ate

Stru

ctur

e

Prop

osed

Two-

Part

R

ate

Varia

nce

due

to

reve

nue

neut

ral

rate

s

19

Two-

Par

t Exa

mpl

e –

Act

ual U

se 5

% B

elow

Bas

elin

e

F11

Pric

es

Ener

gy C

harg

ekW

hce

nts

/ kW

hEn

ergy

$Fi

rst 1

4,80

0 kW

h14

,800

8.18

1,21

1$

Al

l add

ition

al k

Wh

137,

200

3.

94

5,40

6$

152,

000

To

tal E

nerg

y B

ill ($

)6,

616

$

F11

Pric

es

Part

1: B

asel

ine

Ener

gy C

harg

ekW

hce

nts

/ kW

hEn

ergy

$Fi

rst 1

4,80

0 kW

h14

,800

8.17

1,

209

$

Al

l add

ition

al B

asel

ine

kWh

145,

200

3.

93

5,70

6$

160,

000

Part

1 E

nerg

y B

ill6,

916

$

Part

2 :

Ener

gy (C

redi

t) or

Cha

rge

Ener

gy d

iffer

ence

from

Bas

elin

e (+

20%

)(8

,000

)

6.

68

(534

)$

En

ergy

(bel

ow) 8

0% o

r abo

ve 1

20%

of B

asel

ine

3.93

Pa

rt 2

Ene

rgy

Bill

(534

)$

Tota

l Ene

rgy

Bill

6,38

1$

Uni

t Cos

t (¢/

kWh)

4.2

Pro

pose

d Tw

o-Pa

rt R

ate

Stru

ctur

e m

inus

Exi

stin

g LG

S R

ate

Stru

ctur

e ($

)(2

35)

$

Par

t 2 C

redi

t

Cur

rent

LG

S R

ate

Stru

ctur

e

Prop

osed

Tw

o-Pa

rt

Rat

e

20

Two-

Par

t Exa

mpl

e –

Act

ual U

se 5

% A

bove

Bas

elin

e

F11

Pric

es

Ener

gy C

harg

ekW

hce

nts

/ kW

hEn

ergy

$Fi

rst 1

4,80

0 kW

h14

,800

8.18

1,21

1$

A

ll ad

ditio

nal k

Wh

153,

200

3.

94

6,03

6$

168,

000

To

tal E

nerg

y B

ill ($

)7,

247

$

F11

Pric

es

Part

1: B

asel

ine

Ener

gy C

harg

ekW

hce

nts

/ kW

hEn

ergy

$Fi

rst 1

4,80

0 kW

h14

,800

8.17

1,

209

$

Al

l add

ition

al B

asel

ine

kWh

145,

200

3.

93

5,70

6$

160,

000

Pa

rt 1

Ene

rgy

Bill

6,91

6$

Part

2 :

Ener

gy (C

redi

t) or

Cha

rge

Ener

gy d

iffer

ence

from

Bas

elin

e (+

20%

)8,

000

6.68

53

4$

En

ergy

(bel

ow) 8

0% o

r abo

ve 1

20%

of B

asel

ine

3.93

Pa

rt 2

Ene

rgy

Bill

534

$

Tota

l Ene

rgy

Bill

7,45

0$

Uni

t Cos

t (¢/

kWh)

4.4

Pro

pose

d Tw

o-Pa

rt R

ate

Stru

ctur

e m

inus

Exi

stin

g LG

S R

ate

Stru

ctur

e ($

)20

3$

Cur

rent

LG

S R

ate

Stru

ctur

e

Prop

osed

Tw

o-Pa

rt

Rat

e

Par

t 2 C

harg

e

21

MG

S F

lat

MG

S F

lat R

ate

Rat

e––

F201

6 A

vera

ge E

lect

ricity

Rat

e pe

r kW

hF2

016

Ave

rage

Ele

ctric

ity R

ate

per k

Wh

•Fi

gure

2 –

3 b

elow

sho

ws

the

aver

age

elec

trici

ty ra

te p

er k

Wh

for c

usto

mer

s in

the

MG

S c

lass

with

diff

eren

t lev

els

of d

eman

d

~70%

of a

ccou

nts

~30%

of a

ccou

nts

22

For t

he n

ew M

GS

cla

ss a

Fla

t Ene

rgy

Rat

e is

Pro

pose

dFo

r the

new

MG

S c

lass

a F

lat E

nerg

y R

ate

is P

ropo

sed

Pha

se-in

to a

flat

rate

from

cur

rent

dec

linin

g bl

ock

Tabl

e N

-12

prov

ides

the

estim

ated

pric

es a

s th

e ra

te s

truct

ure

flatte

ns

Fisc

al Y

ear

MG

S Ti

er 1

(cen

ts/k

Wh)

MG

S Ti

er 2

(cen

ts/k

Wh)

F201

0(c

urre

nt)

7.69

3.70

F201

18.

124.

05

F201

28.

394.

52

F201

38.

805.

32

F201

49.

136.

40

F201

59.

237.

71

F201

69.

259.

25

Max

imum

Rat

e R

estr

uctu

ring

Impa

ct(S

ee T

able

2-1

)

N/A

CA

RC

+ 2

%

CA

RC

+ 4

%

CA

RC

+ 6

%

CA

RC

+ 8

%

CA

RC

+ 1

0%

CA

RC

+ u

p to

10%

CA

RC

= A

ssum

ed C

lass

Ave

rage

Rat

e C

hang

es c

an a

rise

from

any

or a

ll of

the

follo

win

g:re

venu

e re

quire

men

t cha

nges

, cha

nges

in ra

te ri

der,

and

cost

of s

ervi

ce ra

te re

-bal

anci

ng

23

MG

S B

ill Im

pact

s D

ue to

the

Res

truct

urin

g A

lone

Thes

e bi

ll im

pact

s as

sum

e no

cha

nges

in c

onsu

mpt

ion.

30%

of a

ccou

nts

“pay

mor

e” th

an u

nder

cur

rent

stru

ctur

e•

All

rem

ain

unde

r bill

impa

ct th

resh

olds

•A

vera

ge a

nnua

l bill

incr

ease

is ~

$2,

800

on a

bill

of $

32,0

00 o

r ar

ound

8.7

5%;

if w

e re

mov

e th

e ef

fect

of C

AR

C, t

he e

ffect

of

rest

ruct

urin

g al

one

is a

n av

erag

e an

nual

incr

ease

of 2

%.

70%

of a

ccou

nts

“pay

less

”•

Ave

rage

ann

ual b

ill decrease

due

to re

stru

ctur

ing

is 2

.5%

24

Ove

rvie

w o

f Acc

ount

Too

ls

MG

S A

ccou

nt T

ool

LGS

Acc

ount

Too

l

25

Des

crip

tion

•Eac

h “A

ccou

nt T

ool”

is s

et u

p w

ith th

e ra

te

stru

ctur

es p

ropo

sed

in th

e A

pplic

atio

n as

wel

l as

the

mod

ellin

g as

sum

ptio

ns u

sed

in th

e A

pplic

atio

n

•Eac

h is

“pop

ulat

ed” w

ith a

rang

e of

cus

tom

er

scen

ario

s, in

eac

h ne

w c

lass

•Mod

el p

rovi

des

for t

he s

elec

tion

of a

con

sum

ptio

n pr

ofile

and

for t

he L

GS

Acc

ount

Too

l sel

ectio

n of

an

ann

ual p

erce

nt d

eclin

e (c

onse

rvat

ion)

or

perc

ent i

ncre

ase

in e

nerg

y co

nsum

ptio

n

•Als

o ca

n m

anua

lly in

put c

onsu

mpt

ion

26

MG

S

27

LGS

1.U

ser s

elec

ts a

his

toric

al c

onsu

mpt

ion

scen

ario

-

Sce

nario

s 1

to 9

are

pre

set o

n va

ryin

g co

nsum

ptio

n le

vels

-M

anua

l ent

ry fo

r his

toric

al c

onsu

mpt

ion

(by

mon

th) a

lso

avai

labl

e

2. U

ser s

elec

ts a

con

sum

ptio

n ra

te o

f cha

nge

(e.g

. 0%

gro

wth

per

yea

r)

28

LGS

3. R

esul

t sho

ws

ener

gy c

harg

es- C

ompa

res

the

ener

gy c

harg

es th

at w

ould

hav

e be

en e

xper

ienc

ed a

t the

cu

rrent

dec

linin

g bl

ock

stru

ctur

e w

ith th

e ne

w tw

o-pa

rt ra

te s

truct

ure

- Det

aile

d ac

coun

ting

of c

onsu

mpt

ion

and

char

ges

- For

ecas

ting

rang

e is

bet

wee

n F1

1 to

F15

*Exa

mpl

e sh

own

is g

row

th o

f 0%

for t

he 5

0thpe

rcen

tile

LGS

acc

ount

. Ple

ase

refe

r to

the

tool

for m

ore

deta

ils.

29

Con

serv

atio

n M

etho

dolo

gy

MG

S:

Con

serv

atio

n is

the

prod

uct o

f:–

Ene

rgy

asso

ciat

ed w

ith m

argi

nal p

rice

chan

ge

–%

cha

nge

mar

gina

l pric

e –

Ela

stic

ity

LGS

:C

onse

rvat

ion

is th

e pr

oduc

t of:

–A

ll en

ergy

min

us to

tal e

nerg

y fo

r mon

thly

bill

s w

hen

bill

exce

eds

Pric

e Li

mit

Ban

d–

% c

hang

e in

mar

gina

l pric

e –

Ela

stic

ity

MG

S a

nd L

GS

– a

lso

dedu

ct c

onse

rvat

ion

from

CA

RC

with

no

rate

st

ruct

ure

chan

ge

30

Con

serv

atio

n E

stim

ates

for P

ropo

sed

Rat

e S

truct

ures

Con

serv

atio

n E

stim

ates

for P

ropo

sed

Rat

e S

truct

ures

Con

serv

atio

n es

timat

es fo

r the

pro

pose

d ra

te s

truct

ures

are

hig

her t

han

the

ELG

S fo

reca

st in

the

2008

LTA

P

Tabl

es 5

-1, 5

-2 a

nd 5

-3 p

rovi

de M

GS

and

LG

S c

onse

rvat

ion

estim

ates

and

co

mpa

re th

em to

the

estim

ate

used

in th

e 20

08 L

TAP

for t

he E

LGS

cla

ss

Fisc

al Y

ear

MG

SC

onse

rvat

ion

(GW

h)

LGS

Con

serv

atio

n(G

Wh)

Tota

l(G

Wh)

F201

15

135

140

F201

255

515

570

F201

310

094

010

40

F201

416

012

2013

80

F201

524

014

9517

35

Estim

ated

ELG

S C

onse

rvat

ion

in

2008

LTA

P

230

355

325

310

350

31

Pric

ing

Met

hodo

logy

– P

rinci

ples

App

lied

MG

S a

nd L

GS

:•

mai

ntai

n re

venu

e ne

utra

lity

with

toda

y’s

rate

stru

ctur

e

MG

S:

•S

et T

ier 2

rate

, whi

ch is

lim

ited

by th

e m

axim

um ra

te

rest

ruct

urin

g im

pact

•C

alcu

late

Tie

r 1 re

sidu

ally

LGS

:•

Set

Par

t 2 B

ased

on

Pha

se-in

LR

MC

(see

nex

t slid

e)•

Cal

cula

te P

art 1

(Tie

r 1 a

nd T

ier 2

) res

idua

lly

32

Long

Run

Mar

gina

l Cos

t Ass

umpt

ions

and

Cal

cula

tions

Fisc

al Y

ear

Infla

tion

(%)

Line

Loss

esLR

MC

bas

ed o

n F2

006

Cal

l(c

ents

/kW

h)

LRM

C b

ased

on

12

cent

pr

oxy

(cen

ts/k

Wh)

LGS

Part

-2

Ener

gy R

ate

(cen

ts/k

Wh)

2006

7.36

2007

2.3

6% &

6%

8.46

2008

1.4

6% &

6%

8.58

2009

1.2

6% &

6%

8.68

2010

2.0

6% &

6%

8.85

12.0

0

2011

2.1

6% &

6%

9.04

12.2

56.

68

2012

2.1

6% &

6%

9.23

12.5

16.

68

2013

2.1

6% &

6%

9.42

12.7

79.

42

2014

2.1

13.0

411

.37

2015

2.1

13.3

113

.31

Tabl

e Q

- 3

and

Tabl

e Q

- 4

33

Add

ition

al H

ighl

ight

s

LGS

Acc

ount

s:•

Acc

ount

s w

ith in

suffi

cien

t his

tory

200

5 –

2007

•N

ew a

ccou

nts:

90%

Par

t 1 p

lus

10%

Par

t 2

All

Acc

ount

s:•

Mig

ratio

n ru

les

•Im

plem

enta

tion

- 6 m

onth

s re

quire

d fro

m B

CU

C O

rder

to L

aunc

h.K

ey d

river

s of

tim

elin

e:–

Bill

ing

Sys

tem

–

Cus

tom

er S

uppo

rt–

Two

new

rate

stru

ctur

es

•E

valu

atio

n:–

2 co

ntro

l gro

ups

– M

GS

and

LG

S–

36 m

onth

s un

til L

GS

repo

rt to

BC

UC

34

BC

UC

Reg

ulat

ory

Tim

etab

le

Rou

nd 1

IRs

Due

BC

UC

Inte

rven

ors

Nov

embe

r 12

Nov

embe

r 16

Filin

g of

Ass

ista

nce/

Cos

t Aw

ard

Bud

gets

Nov

embe

r 18

BC

Hyd

ro R

ound

1 IR

Res

pons

es D

ueD

ecem

ber 7

Pro

cedu

ral C

onfe

renc

eD

ecem

ber 8

Rou

nd 2

IRs

Due

Fro

m A

llD

ecem

ber 1

7

BC

Hyd

ro R

ound

2 IR

Res

pons

es D

ueJa

nuar

y 22

, 201

0

Inte

rven

or E

vide

nce

(if a

ny) F

iled

Febr

uary

1, 2

010

IRs

on In

terv

enor

Evi

denc

e D

ue F

rom

All

Febr

uary

10,

201

0

Inte

rven

or IR

Res

pons

es D

ueM

arch

2, 2

010