Le 20 octobre 2008 No de dossier : R-3677-2008 Traduction d’une réponse à la DDR N° 1 de RNCREQ Page 1 de 3 TRADUCTION D’UNE RÉPONSE À LA DEMANDE DE RENSEIGNEMENTS N° 1 DE RNCREQ À HQD DEMANDE DU DISTRIBUTEUR RELATIVE À L'ÉTABLISSEMENT DES TARIFS D'ÉLECTRICITÉ POUR L'ANNÉE TARIFAIRE 2009-2010 R-3677-2008 Pièce : HQD-16, document 10 Réponse traduite : no. 5 Question: 5. Please provide a precise description of the meaning of each the three blocks of columns in the tables in reference i), namely: • « Nombre de clients dont la consommation maximale est facturée dans la strate » • « Nombre de factures dont le dernier kWh est compris dans la strate » • « Répartition de la consommation totale par strate » Response: At the outset, the Distributor notes that the billing period is approximately 60 days for residential customers and 30 days for customers with a capacity invoice. This means that each customer receives an average of 6 bills per year. Since the Distributor’s data is not limited to six per customer, any calculation with the objective of fragmenting these bills is based on a prorated rule according to the number of days of consumption. It is the reason for which the Tables cited in the reference, and produced every year at OC’s request, (see response to OC question 74 which can be found in Exhibit HQD-15, document 8 of application R-3644-2007) will only ever be an aggregation of all customers’ consumption based on the different thresholds of the 1st block, and it must be understood as such. OC’s question also involves calculating bills by season (summer/winter). However, customers are rarely ever billed precisely at the beginning or the end of a month or season. To generate data by month or season, it is therefore necessary to consider adjacent billing periods. For example, the bill for the beginning of the summer period partially covers winter months. Conversely, the bill for the beginning of the winter period also includes summer consumption. In order to adequately cover seasons, the Distributor must therefore calculate portions of bills that are associated with these adjacent billing periods, as required. In the Tables cited in the reference, this is what leads Le 20 octobre 2008 No de dossier : R-3677-2008 Traduction d’une réponse à la DDR N° 1 de RNCREQ Page 2 de 3 to the creation of an average of 17 bills per customer. In order to assist in understanding these Tables, the Distributor has modified the way the information is treated and presented (see response to OC question 37.1 in Exhibit HQD-16, document 9). The columns that appear below the heading « Billed Consumption » are obtained by simulating residential customers’ actual bills according to different thresholds in the 1st block. For example, over an annual period and for all residential customers, if the threshold is 5 kWh per day this simulation shows that 5 551 GWh will be billed in the 1st block (5 kWh or less) and 46 039 GWh will be billed in the 2nd block (6 KWh or more), for proportions that are respectively 10.8% and 89.2%. This simulation also makes it possible to determine the number of customers billed in the 1st block based on different thresholds throughout the year. For example, in the same table, using a threshold of 25 KWh, 428 000 residential customers would always be billed in the 1st block regardless of the number of bills. However, this number does not say anything about customers who may always have 5 bills in the 1st block and a 6th bill for consumption which exceeds that threshold, nor does it say anything about customers who only have 4 bills that are exclusively in the 1st block and so on. Finally, the data in column “Number of Monthly Periods Billed Only in the 1st Block” were calculated based on approximately 17 million residential customer bills that are issued annually (2.9 million customers X 6 bills per year). The latter were changed to daily invoices prorated to the number of days per billing period. These 17 million bills therefore amount to more than 1 billion daily bills (17 million bills X 60 days). These are then sorted and associated to a level in the 1st consumption block. Thus, all daily bills of 5 KWh or less are associated with a 5 KWh threshold in the 1st block; all daily bills between 6 kWh to 10 kWh are associated with a 10 KWh threshold in the 1st block, etc. The number of bills associated with each threshold is then divided by 30 to show how many monthly billing periods would always fall within the 1st block, based on the different thresholds, assuming each customer’s daily consumption is consistent over time. In keeping with the words of caution expressed above, the Distributor reiterates that this data cannot be used in any way to estimate the rate impact that would result from a change in the rate structure. Only customer by customer rate simulations make it possible to carry out that exercise with precision. This means that the 6 bills for each of the 2.9 million customers are recalculated using new parameters in order to obtain a new bill. For each customer, this new annual bill is then compared with the actual annual bill which is based on the rates that are in effect. It is these 2.9 million comparisons that make it possible to carry out the distribution Le 20 octobre 2008 No de dossier : R-3677-2008 Traduction d’une réponse à la DDR N° 1 de RNCREQ Page 3 de 3 of rate impacts which appear, for example, in table 60 or in Appendix C of Exhibit HQD-12, document 1.