BARRIE HYDRO DISTRIBUTION INC.
2006 ELECTRICITY DISTRIBUTION RATES FILING
SUMMARY OF APPLICATION
RP-2005-0020 EB-2005-0338
Please find enclosed Barrie Hydro Distribution Inc.’s (BHDI), licence # ED-2002-0534,
2006 Distribution Rate Application. Barrie Hydro Distribution Inc. requests approval of
the rates as filed in the 2006 EDR model.
As per section 2.1.4 of the 2006 EDR handbook, BHDI has no special conditions in, or
any exemptions of conditions of its licence, that will affect the review of this application.
Contained in this application are:
1. a completed 2006 EDR model, a PILS model, and a Regulatory Asset model;
2. Schedules outlined in the 2006 EDR handbook, as applicable; and,
3. the “Summary of Application” formatted in chapters corresponding to the
handbook as requested in section 2.1.6.
BHDI does not propose to make any changes to its Retail Transmission Service Rates in
this application. Having reviewed the activity in the RSVA accounts 1584 and 1586
between January 1, 2002 and December 31, 2004, there is not a material enough change
in the balances to warrant a change in rates at this time. BHDI will continue to monitor
these balances and will apply for a change in rates when warranted.
CHAPTER 2 – COMPONENTS OF THE APPLICATION AND SCHEDULES
Under this chapter we are filing the requested information in Schedules 2-1, 2-2, 2-3, and
2-4. Attached to these schedules are any required attachments or explanations.
Schedule 2-1 – Description of the Distributor
Schedule 2-2 – Corporate Organization Chart – attachment
Schedule 2-3 – Audited Financial Statements and Reconciliations – attachment
Schedule 2-4 – Complete Listing of Rates and Charges – attachment
CHAPTER 3 – TEST YEAR AND ADJUSTMENTS
BHDI has chosen to file our rate application under Option 2: 2004 year with all
applicable Tier 1 adjustments. This is outlined in section 3.1 of the handbook.
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2006 Electricity Distribution Rates Filing Summary
Under this chapter we are filing the requested information in Schedules 3-1, 3-2, 3-3, and
3-4. Attached to these schedules are any required attachments or explanations. Further
explanatory notes are detailed in this summary as well.
Schedule 3-1 – Tier 1 Adjustments
Section 1 of this Schedule details Standard Distribution Expense Adjustments that
include:
OEB Assessment Fee – We have calculated the amounts expensed in 2004 and 2005.
This was calculated in the following manner:
2003-2004 assessment $67,235 @ 25% = $16,809.
2004-2005 assessment $138,774 @ 75% = $104,081.
Total expensed in 2004 = $16,809 + $104,081 = $120,890.
2004-2005 assessment $138,774 @ 25% = $34,694.
2005-2006 assessment $242,804 @ 75% = $182,103.
Total expensed in 2005 = $34,694 + $182,103 = $216,797.
The adjustment applied for is a difference of $95,907.
We would note that in EDR model sheet ADJ 3 we have entered the difference of
$95,907 as we have recorded this expense in account 5630 as opposed to account 5655.
Pensions – BHDI is a member of the OMERS pension group. OMERS pension premiums
expensed in 2004 were $419,774. For 2005 we have estimated premiums expensed by the
following method – June 30, 2005 YTD actual premiums expensed = $206,882 / 25
weeks @52 weeks = $430,315.
The adjustment applied for is a difference of $10,541.
We would note that our OMERS expense is not recorded in account 5645.
Insurance – The amounts shown in this section only represent property insurance and do
not include liability and vehicle insurance. This is indicated in the EDR model sheet ADJ
3 where only account 5635 property insurance is indicated. The 2004 and 2005 amounts
are our actual insurance premiums.
Section 2 of this Schedule details Other Standard Distribution Expense and Rate Base
Adjustments, which include:
Low Voltage/wheeling adjustments – BHDI has included this as a Distribution Expense
Tier 1 Adjustment. The types of adjustments are detailed on page 13 of the handbook.
They fall under three types:
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2006 Electricity Distribution Rates Filing Summary
A – Non Hydro One Wheeling Charges – BHDI does not have this type of expense.
B – Hydro One LV Charges – Account 1508 – January 2004 to May 2006 – The OEB
has issued a guideline that these expenses will be dealt with in the Regulatory Asset
filing.
C – Post May 2006 Hydro One LV Charges – As discussed with OEB staff, an estimate
should be made on the following premise; based on Hydro One’s approved Low
Voltage Facilities Charges which were approved by the OEB in August of 2002 but
were never implemented and using BHDI’s 2004 consumption levels. This amount
has been calculated and explained in Schedule 3-1 in the amount of $1,104,354 and
has been entered in the model on sheet Adj 3.
Smart Meter Initiatives – At the time of this application BHDI has no planned
expenditures on Smart Meters either expense or rate base.
New transformer Stations with a 2005 in-service date – BHDI will not have any new
transformer stations in service in 2005.
Wholesale Meters to the 2005 Actuals – BHDI has forecasted additions of $493,000 on
wholesale meters in 2005. This amount has been added as a rate base adjustment in the
EDR model in sheet ADJ 1. Depreciation expense representing ½ year has been
calculated in the amount of $8,208 and added into the model in sheet Adj 3b. Further
details are included in Schedule 3-1.
Retirements Without Replacement – BHDI does not anticipate any 2005 retirement with
a net book value exceeding our materiality level of $150,000.
Schedule 3-2 – Tier 1 Non Routine/Unusual Adjustments
BHDI has one non-routine/unusual adjustment of a rate base nature. This pertains to the
adjustment of 2003 construction work in progress, which is detailed in Schedule 3-2 and
adjusted in sheet Adj 1a of the model.
BHDI has two non-routine/ unusual adjustments of a distribution expense nature. They
are:
1.
post retirement benefits adjustment
2.
severance package affecting wages
Both of these adjustments have been explained in detail in the attached schedule. The
corresponding adjustments have been entered in the EDR model in sheet Adj 3A
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Schedule 3-3 – Tier 2 Adjustments
BHDI does not meet the criteria for Tier 2 adjustments therefore this schedule is not
applicable.
Schedule 3-4 Conservation and Demand Management
BHDI is not seeking approval of CDM spending in 2006 that is incremental to funding
previously approved by the OEB from a rate base or distribution expense perspective.
BHDI is seeking approval for the addition of third traunche CDM spending as a Tier 1
rate base adjustment in the amount of $975,000. A listing of the amounts being added is
attached to this schedule (3-4). No spending of these amounts occurred in 2004. This
amount has been included in the EDR model under sheet ADJ 1. Depreciation expense
representing ½ year has been calculated in the amount of $15,746 and added into the
model in sheet Adj 3b. Further details are included in Schedule 3-4.
CHAPTER 4 - RATE BASE
In 2004 BHDI paid a capital contribution to Hydro One in the amount of $475,185 for
upgrades of their plant at the Midhurst TS [$261,076] and at the Brownhill Feeder
servicing Bradford [$214,109]. BHDI has recorded these costs in account 1525. As
identified on page 26 of the handbook these amounts can be recorded in rate base. In
sheet 2-4 of the model Adjusted Accounting Data, column E, we have moved these
amounts from account 1525 to account 1815, so as to be included in rate base. BHDI
would request that for the purpose of this application the amounts in account 1815 be
deemed to be distribution assets.
BHDI has also made an adjustment in sheet 2-4 Adjusted Accounting Data, column E in
account 2055, Construction Work in Progress – Electric. The amount in this account of
$18,484,899 represents distribution assets in progress but not in service. Account 2055 is
not counted in the calculation of rate base. BHDI feels that these should be included in
rate base as they were in the original RUD model, as they are an investment in fixed
assets.
A similar adjustment was made in Tier 1 non-routine/rate base adjustments for the 2003
year-end “Construction in Progress” balance. To make this adjustment in sheet 2-4 we
have removed the amount of $18,484,899 from account 2055 and entered the amount in
the appropriate fixed asset account to which the spending pertains. The amounts added
are: account 1980 - $514,950, account 1820 - $3,010,181, account 1835 - $3,928,953,
account 1830 - $616,471, account 1845 - $9,225,116, and, account 1925 - $1,189,228.
Section 4.1 of this chapter deals with amortization rates. BHDI notes that Software
account 1925 is not listed in Appendix B, Amortization Rates, thus, for software
amortization; BHDI follows the recommendations of the CICA handbook.
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Further in section 4.1 BHDI is making the following request regarding rolling stock and
equipment amortization. Since 1995 BHDI has amortized all rolling stock (account 1930)
over a 5-year life. Our former regulator approved this practice and the depreciation
amounts included in the original RUD model were based on this amortization period.
Appendix B notes that large vehicles should be amortized over an 8-year life. We have
noted that the difference in the 2004 amortization expense included in distribution
expense is as follows: under 5 year rate is $300,807 and the under 8 year rate is $190,435,
for a difference of $110,372 included in rates.
Offsetting this increase would be the restating of rate base for the adjusted net fixed
assets. Net fixed assets included in this application for rate base under the 5 year rate is
$920,750, the adjusted net fixed assets included in rate base under a 8 year rate would be
$1,235,612, for a difference in rate base of $314,862. If this amount were added to rate
base and our cost of capital of 7.85% calculated on this it would equate to $24,717.
Overall the change in amounts recovered through rates would be $110,372 less $24,717 =
$85,655. Please see the calculation sheet, which is attached (attachment #11).
BHDI requests for consistency sake with past rate applications that the amortization
expense and rate base amounts be accepted as per test year 2004 filed amounts.
As requested in section 4.2 Capital Investments, BHDI has filed Schedule 4-1 with
attachments describing projects over the materiality level of $150,000.
As requested in section 4.4, BHDI currently does not have a formalized capitalization
policy. Our capitalization practices have been guided by section 4000 of the “Accounting
for Municipal Electric Utilities in Ontario”. These guidelines were established by our
former regulator.
In section 4.6, Treatment of Capital Gains and Losses, BHDI did not have any gains or
losses on non-depreciable assets.
CHAPTER 5 - COST OF CAPITAL
BHDI is seeking the maximum return on equity of 9.00% in this application.
In section 5.2 of this chapter, calculation of debt rate is discussed. BHDI has completed
schedule 5-1 showing the calculation of this rate.
Section 5.3 of this chapter discusses capital structure. BHDI has completed schedule 5-2
comparing actual to deemed capital structure. As part of schedule 5-2 we have noted the
account numbers used in the calculation of the actual capital structure.
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2006 Electricity Distribution Rates Filing Summary
CHAPTER 6 - DISTRIBUTION EXPENSES
BHDI has completed and attached the following schedules from this chapter; schedule 61, 6-2, 6-3, 6-4, 6-5, 6-6, 6-7, 6-8, 6-9, and 6-10.
BHDI has also made an adjustment to the distribution expenses in the EDR model in
sheet 2-4 Adjusted Accounting Data. Account 5330 represents funds received for
collection charges and is a credit in 2004 of $233,239. This amount is charged through
collection charges, which is a Specific Service Charge. In the EDR model, the revenue
collected from Specific Service Charges is calculated in sheet 5-2 Specific Service
Charges. The collection charges amount is included in this sheet. The total amount from
sheet 5-2 is brought forward to sheet 5-5 Base Revenue Requirement as an offset to the
Service Revenue Requirement. Therefore, the amount collected from collection charges
is subtracted from the Service Revenue Requirement in sheet 5-5. In sheet 2-4, Adjusted
Accounting Data, account 5330 is included as a credit or reduction in the calculation of
Distribution expenses that is brought forward to sheet 5-1 Service Revenue Requirement.
This in effect is deducting the revenue received from Collection Charges twice. We have
made the following adjustment in sheet 2-4 Column E to alleviate this problem. We have
debited account 5330 Collection Charges in the amount of $233,239 and put the
corresponding credit in account 5195 that is a non-distribution expense and is therefore
not included in the calculation of Distribution Expense.
In section 6.2.1 information on insurance expense is requested. BHDI has third party
insurance and has filed the required detail in schedule 6-1.
In section 6.2.1 Bad Debt Expense information is discussed. BHDI has filed the requested
information in schedule 6-2.
Section 6.2.3 Information Technology Expenses, requests information on BHDI’s
organization for IT services and its methodology of recording expenses. BHDI has an in
house IT department. Some specific and specialized hardware and software requirements
are contracted through third party suppliers. All IT expenses are charged to the IT
department and these expenses are captured in accounts 5610, 5615, 5620, 5630, and
5665.
Section 6.2.4 discusses a number of different expenses of which the individual expenses
are detailed as follows.
1.
Advertising Expenses – BHDI did not incur any advertising expenses for the
purpose of promoting corporate branding or image in 2004.
2.
Political Contributions – BHDI did not make any contributions to political
parties in 2004.
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2006 Electricity Distribution Rates Filing Summary
3.
Employee Dues – BHDI did not incur any expenses in 2004 for annual fees
or dues related to employee memberships in organizations that are of a
recreational or social nature.
4.
Charitable Contributions – As detailed in schedule 6-3 BHDI has identified
that of the $34,551 expended on charitable donations in 2004, that none of
these amounts meet the eligibility requirements to be included in rates.
Therefore in the EDR model sheet Adj 5 this amount has been removed
from distribution expenses.
5.
Meals/travel and Business and Entertainment Expenses – BHDI has a
written policy that sets out guidelines for management approval of meals,
travel, and business entertainment expenses (see Attachment #9). Any of the
above type of expenses included in this application were approved by
management based upon the corporate policy.
6.
Research and Development – BHDI has no research and development
expenditures that are being claimed in this application.
Section 6.2.5 requires information concerning Employee Total Compensation. Schedule
6-4 has been completed detailing employee compensation amounts.
This section also requests information concerning Incentive Compensation Plans. BHDI
has completed and filed schedule 6-5 outlining the details of its Plan. As explained in
schedule 6-5 BHDI is removing the amount of incentive compensation of $74,976 from
its distribution expenses. This adjustment was made in the model in sheet Adj 3a in the
following accounts; account 5605 - $16,788; account 5610 – $48,706; account 5615 $9,482.
Section 6.2.6 details Pensions and Post–Retirement Benefits. BHDI is a member of the
OMERS Pension Plan so we have attached schedule 6-6 as required. Section 2 of this
schedule details post-retirement benefits expense information. Additional information has
been included in this schedule outlining BHDI’s treatment of these expenses.
Section 6.2.7 details distribution expenses paid to affiliates. This section is broken into
three parts:
1.
Affiliate Transactions – BHDI has filed schedule 6-8 outlining any
distribution expenses incurred from an affiliate company. The only
distribution expense incurred through an affiliate was the payment of
municipal property taxes paid to our shareholder, the City of Barrie. Further
explanation is detailed in schedule 6-8.
2.
Shared Services – Schedule 6-9 details any distribution expenses incurred
through the sharing of services or resources with an affiliate. BHDI has no
distribution expenses of this kind.
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2006 Electricity Distribution Rates Filing Summary
3.
Outsourced Distribution Services – Schedule 6-10 requests detailed
information where a distributor has outsourced fifty percent or more of its
distribution services. This is not applicable to BHDI.
CHAPTER 7 - TAXES/PILS
From the Spreadsheet “Input Information Summary”
1. Question 7 -We have deducted for tax purposes our regulatory asset as we have a
ruling from the Ministry of Finance that even though they are an asset for
accounting purposes, they should be deducted in the year incurred for tax
purposes. We have attached the ruling from the Ministry for your review
(Attachment #10).
2. Question 8 - We purchased four Utilities in the year 2000 – Penetanguishene,
Bradford West Gwillimbury, New Tecumseth and Essa Hydro. Our rates have
been fully harmonized. We have removed the amount of $8,410,571 of UCC and
$15,955 from CEC in the “2004 Schedule 8 and 10 UCC and CEC” which
represents the amount we paid over book value for these Utilities at the 2004
values.
3. Question 9 - Barrie Hydro accrued dividends on our 2004 financial statements for
accounting purposes, but did not actually pay them until 2005. Therefore, for tax
purposes they were not included in our 2004 return and will be dealt with in the
year they are actually paid. There will be no material tax implication that we can
foresee for 2005. There has been no adjustment in our test year for these
payments.
From the Spreadsheet “2004 Adjusted Taxable Income”
1. Line 52 of this spreadsheet shows $2,546,911 of other additions – please see
details below:
Business income form T5013 – ENERconnect Ltd. Partnership
Financing fees deducted in F/S
Recovery of Regulatory Asset – deducted in prior year for tax
Amortization on deferred charges (right of use substation)
$ 16,212
95,700
2,429,847
5,152
2. Line 75 of this spreadsheet shows $1,354,605 of other deductions – please see
details below:
Ontario Capital Tax included in Income Tax provision
Tax-deductible regulatory assets capitalized for accounting
Finance costs 20(1)(e) deduction
Employee future benefits expense $238,700 net of
CRadj ($311,439)
$ 382,505
708,001
191,360
72,739
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From the Spreadsheet “Test Year Schedule 7-3 Interest”
Barrie Hydro Distribution Inc. did not make an election to capitalize interest
incurred on CWIP for tax purposes for 2004 & prior years.
From the Spreadsheet “ Test Year Taxable Income”
We have assumed there are no changes to the 2004 amounts other than to remove
the regulatory asset amount out of the adjustments.
From the Spreadsheet “Test Year OCT, LCT”
Barrie Hydro Distribution Inc. will be using the method in section B – detailed
calculation for actual paid up capital.
From the Spreadsheet “2001 Fair Market Value (FMV) Bump”
The FMV bump up we used in our 2001 tax return was $37,707,961. We have
grouped them all in Class 1, as we do not have them broken down in specific
accounts.
Please note the following:



Schedule 7-1 in the 2006 Electricity Distribution Handbook is found in the PILs
Filing under the spreadsheet “Test Yr. 7-1 Loss Cfwd.” and is N/A for our 2006
rate filing.
Schedule 7-2 in the 2006 Electricity Distribution Handbook is found in “2001
Schedule FMV” Spreadsheet. The total amount was allocated to Class 1 assets.
For accounting purposes the FMV bump up was not booked. The December 31,
2004 impacts as follows: CCA is $1,389,371 and the ending UCC is
$33,344,910.
Schedule 7-3 in the 2006 Electricity Distribution Handbook is found in “Test
Year Sch. 7-1 Interest” in the PILs filing.
CHAPTER 8 - REVENUE REQUIREMENT
Under Section 8.2 of this chapter BHDI has made the following adjustments for revenue
offsets. All these adjustments are reflected in the EDR model in sheet 2-4 Adjusted
Accounting Data, Column E. The adjustments are:
1. The amount pertaining to the 2004 Standard Supply Service Administration
Charge in the amount of $155,399 has been moved out of account 4080 and
entered in account 4090 as per the instructions on page 12 & 13 of the
instructions for users of the EDR 2006 model document.
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2. The amount pertaining to revenue from pole rentals in 2004 in the amount of
$139,339 has been moved out of account 4210 and entered in account 4230 as
per the instructions on page 12 & 13 of the instructions for users of the EDR
2006 model document.
3. Amounts in account 4235 that do not pertain to specific service charges and/or
revenues that will not occur in 2006 have been moved into account 4220 so as
to be included as a revenue offset. These amounts are $99,135, which
represents a favourable allocation of vehicle charges and $307,146 that
represents a favourable allocation of operation overheads. These two amounts
total $406,281, which has been moved out of account 4235 and into, account
4220. Further details of these amounts are included in Schedule 8-2.
4. The amount recorded in account 4405 Interest & Dividend income for 2004 is
the amount of $487,098. This amount includes interest income from RSVA
carrying charges in the amount of $267,454 and interest income calculated on
transitional costs (account 1570) in the amount of $105,061. These two total
$372,515 and have been moved from account 4405 to account 4380 so as to
not be included as a revenue offset.
BHDI’s rationale for this adjustment is that amounts in account 4405 become
a revenue offset in the EDR model thus reducing the Base Revenue
Requirement as shown in EDR model sheet 5-5. The two amounts noted
above totaling $372,515 are amounts being recovered through the Regulatory
Asset Model. These are amounts that will be recovered through the
Regulatory Asset Rate Riders and as such should not be included as a revenue
offset in the distribution rate calculation.
As requested Schedule 8-1 and 8-2 have been filed. These schedules include further
explanations and include the adjustments detailed above.
Schedule 8-3, Regulatory Asset Recovery has been completed. No input was put in the
2005 rate rider column, as BHDI’s 2005 rate riders are a component of the volumetric
distribution rate. The 2006 Rate Rider column has been populated with the amounts
calculated in the Regulatory Asset Recovery Model.
CHAPTER 9 - COST ALLOCATION
As per section 9.1 of this chapter, BHDI will retain its current customer rate classes with
the exception of sentinel lighting. BHDI would request that in this rate application that
the customer rate classification of sentinel lighting be eliminated. BHDI has not had any
consumption in this category since 2000 and will not be installing any new sentinel
lighting in the future.
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2006 Electricity Distribution Rates Filing Summary
BHDI would note as well that in the EDR model sheet 6-1 Customer Classes, that for the
class GS > 50 kW the model has wording “(up to 3000 kW)”. In BHDI’s case this class is
“(up to 5000 kW)”, this wording cannot be changed in the locked model, so we are noting
it here.
Regarding section 9.2 Determination of the Appropriate Share of the 2006 Revenue
Requirement for each class, BHDI does not propose to make any change to the
methodology or charge determinants. We are not aware of any material changes to
customer loads in 2005 or 2006.
We have attached Schedules 9-1, 9-2, and 9-3.
CHAPTER 10 - RATES AND CHARGES
BHDI would like to identify that in the EDR Model sheet 6-2 Demand Rates, in columns
U,V, and W, the rates used are those from sheet 3 of the 2005 rate application model as
allowed on page 10 of the user instructions for the 2006 EDR Model.
In section 10.1 of this chapter regarding Fixed/Variable split BHDI does not propose to
make any changes to the Fixed/Variable split as calculated in the EDR model.
Section 10.2 deals with Unmetered Scattered Loads. Schedule 10-2 has been completed
with the required information. BHDI falls under point 2 on page 93 of the EDR
Handbook and therefore is reducing the monthly service charge per connection on
unmetered scattered loads to 50% of the GS < 50 kW monthly service charge. This was
accomplished in the EDR model by the following steps:
1. In sheet 6-2 of the model, as per the model users instructions cell W94 and
cell AA94 were entered at an amount of approximately 50% of the
corresponding GS < 50 kW cells. The amounts entered in cell W94 and AA94
were $7.14 as compared to the GS < 50 kW amount of $15.11.
2. In sheet 8-5, the monthly service charge for unmetered scattered loads
calculated to $7.59 (cell W94), as compared to the monthly service charge for
GS < 50 kW $15.18.
3. In sheet 8-5, in cell R94 we have entered the variable rate of $.0162 so as to
harmonize the GS < 50 kW variable rate and the unmetered scattered load
rate. The calculated variable rate for unmetered scattered load was $.0172.
Section 10.3 deals with Time of Use Distribution Rates. As outlined in Schedule 10-3
BHDI had harmonized our GS > 50kW and GS > 50kW Time of Use (interval meter)
rates previously, but we wish to retain the “Time of Use” classification for statistical and
other purposes. In the EDR model sheet 8-5 in cell S70 and T70 we have entered the rates
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2006 Electricity Distribution Rates Filing Summary
calculated for GS > 50 kW of $1.7968/kW and $379.35 fixed service charge. As well in
sheet 8-4 we have entered the regulatory asset rate rider of $0.6856/kW.
Section 10.5 re Update of Loss Adjustment factor requires the filing of Schedule 10-5.
BHDI has filed this schedule and will use the Distribution Loss Adjustment Factor of
1.0463 as calculated.
As per section 10.6 Standby Charges, BHDI will continue to use its current approved
Standby Charge (Standby Facility Charge) of $2.60/kW when applicable.
As per Section 10.8 Demand Determinants, BHDI will continue to bill distribution rates
at demands of the greater of 100% of kW or 90% of the kVA amounts.
BHDI would request in this section as well that a rate for the Large User class be
maintained. BHDI currently does not have customers classed as a Large User. In our past
three rate applications we have requested to keep this class active and to have an
approved rate to carry forward in case a Large Use customer either moved into our
service territory or one of our current customers experienced load growth to qualify for
this classification. While we currently do not know of any of these situations, we would
request that in keeping with past practice, the Large User rate currently approved in our
rates continue as an approved rate in the 2006 rate application. We would note that in this
rate application, distribution rates without the regulatory asset rate rider have changed
very little, and therefore, feel approval of the current Large User rate would be
appropriate. In the EDR model sheet 8-5 in cell S90 and T90 we have entered our current
Large User rates of $0.5305/kW and $8,689.30 fixed service charge.
CHAPTER 11 - SPECIFIC SERVICE CHARGES
As listed in Schedule 11-1, BHDI is applying for the following Specific Service Charges:
The following charges will be charged at the standard amount as specified in the
schedule:
1.
2.
3.
4.
5.
6.
7.
8.
Arrears Certificate
Easement Letter
Returned Cheque Charge
Disconnect/Reconnect at meter – after regular hours
Disconnect/Reconnect at pole – during regular hours
Disconnect/Reconnect at pole – after regular hours
Meter Dispute Charge
Specific Charge for Access to the Power Poles
The following charges will be charged under the standard formula with adjustments and a
completed Schedule 11-2 is attached:
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2006 Electricity Distribution Rates Filing Summary
1.
Account set up charge/change of occupancy charge – Charge $15.00
BHDI as outlined in the attached Schedule 11-2 (highlighted) has used the
standard formula and rates with the exception that no field staff time is
required, therefore direct labour (field staff) and vehicle time has been
removed to come to the $15.00 charge.
2.
Collection of Account Charge – no disconnection – Charge $15.00
BHDI as outlined in the attached Schedule 11-2 (highlighted) has used the
standard formulas and rates with the following changes. BHDI contracts this
function out, therefore the direct labour (field staff) and vehicle time has
been removed and the contract amount of $6.93 has been inserted. Also
BHDI has determined that due to the contract out nature of this function that
direct labour (inside staff) is at 0.3 of an hour and that no other costs are
incurred.
3.
Disconnect/Reconnect at meter – during regular hours – Charge $30.00
BHDI as outlined in the attached Schedule 11-2 (highlighted) has used the
standard formulas and rates with the following changes. BHDI contracts this
function out, therefore the direct labour (field staff) and vehicle time has
been removed and the contract amount of $22.44 has been inserted. Also
BHDI has determined that due to the contract out nature of this function that
direct labour (inside staff) is at 0.3 of an hour and that no other costs are
incurred.
BHDI has also indicated in Schedule 11-1 that for Service Call – customer owned
equipment and Service Call – after regular hours, that Time and Material Charges will
apply.
Schedule 11-3 requests that 2002, 2003, 2004 volumes for specific service charges to be
charged in this rate application be identified. BHDI would like to make the following
clarifications; BHDI has historically recorded transactional data of arrears certificates and
easement letters together. In 11-3 we have recorded all the transactions under Arrears
Certificates. Since the charges for both are equal ($15) this will not affect the total
revenue calculated. In the future BHDI will record these transactions separately.
As outlined under section 11.0 of this chapter BHDI is not applying for any charges for
activities that could be categorized as contractual arrangements. For clarification
purposes, BHDI does supply some services to an affiliate who provides water and sewer
billing services to third parties. Charges and costs follow the affiliate relationship code.
The costs and revenue for these activities have been identified in accounts 4375 and 4380
revenue and expenses of non-utility operations. These accounts are not included in the
calculation of our distribution rates.
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CHAPTER 12 - OTHER REGULATED CHARGES
BHDI proposes no changes under this chapter.
CHAPTER 13 - MITIGATION
Based on the EDR model sheets 9-1 bill impacts and 9-1Alt bill impacts, no customer
class or groups total bill increases exceed 10%.
CHAPTER 14 - COMPARATORS AND COHORTS
No filing information required.
CHAPTER 15 - SERVICE QUALITY REGULATION
As required BHDI is filing Schedule 15-1.
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July 29, 2005