From: Dave Hovde Sent: June-18-13 3:49 PM To: RRF; Larry Kaufmann Subject: RE: RRFE Adjustment for Smart Meter Plant In response to the issue regarding the timing of the smart meter adjustment, PEG offers the following clarifying comments: 1. For companies which have had their smart meter cost approved, no adjustment was needed because it is already in the reported plant values. 2. For companies that have not yet had their cost approved, we made an adjustment to 2011 plant as if it had been approved in that year. 3. We chose to adjust gross plant for deferred smart meter cost and use a consistent method for calculating gross additions. This was done instead of modifying additions for just the companies that did not have their cost approved. 4. The column in Q Capital that has the smart meter plant values only have values for 2011. 5. Because of the method we used to implement the adjustment, the “1“ in Column C only matters for 2011 and only for those which have not received approval. 6. If we do a 2012 update, we will need to revisit which companies have received approval and adjust accordingly 7. Therefore, although we agree with the spirit of the comments below, it does not matter because of the method we used. Regards, Dave Hovde Vice President Pacific Economics Group Research 22 E. Mifflin Street Suite 302 Madison, WI 53703 hovde@earthlink.net From: CAmos@wnhydro.com [mailto:CAmos@wnhydro.com] Sent: June-18-13 6:59 AM To: RRF Cc: mtucci@eda-on.ca Subject: RRFE Adjustment for Smart Meter Plant Good Morning, In reviewing PEG's spreadsheets, it was noted that in File 'TFP and BM Database Calculation 2', Tab 'Capital Contributions for BM', Column C Adjust for Deferred Smart Meter Plant - some LDC's have '0' and some have '1'. It is our understanding that the assignment of '0' or '1' depends on how the company responded to the data request question about whether their smart meter cost has been approved by the OEB and that PEG only made the adjustment ('1') for the companies that have not had their cost approved yet. We are inquiring as to whether '0' should be applied in the year that the Smart Meter Disposition is Approved, as well as subsequent years, rather than all years being shown as a '0' if it has been approved. The previous years' would be shown as a '1'. I have shown an example below for your review: Thank you, Chris Amos Chris Amos, CPA CA Regulatory Consultant for Waterloo North Hydro Inc. 519-888-5541 or 519-886-5090 x 541 This transmission is confidential and intended for the person(s) or organization(s) to whom it is addressed. It may contain privileged and/or confidential information. If you are not the intended recipient, you are not authorized to copy, distribute or take any action in reliance on it. If you have received this transmission in error, please notify the sender by reply e-mail and delete this transmission. Thank you for your cooperation. CONFIDENTIALITY DISCLAIMER: This e-mail message, including any attachments, is confidential and intended only for the person(s) named above. This material may contain confidential, privileged or personal information which may be subject to the provisions of the Personal Information Protection & Electronic Documents Act (PIPEDA). Any unauthorized use or disclosure is strictly prohibited. If you are not the intended recipient or have received this message in error, please notify the sender or Waterloo North Hydro immediately and permanently delete the original message including any attachments and copies. Thank you for your cooperation. This message has not been encrypted. Special arrangements can be made for encryption upon request. ** PLEASE CONSIDER THE ENVIRONMENT BEFORE PRINTING THIS EMAIL ** This electronic transmission, including any accompanying attachments, may contain information that is confidential, privileged and/or exempt from disclosure under applicable law, and is intended only for the recipient(s) named above. Any distribution, review, dissemination or copying of the contents of this communication by anyone other than the intended recipient(s) is strictly prohibited. If you have received this communication in error, please notify the sender immediately by return e-mail and permanently delete the copy you have received. Ce message, transmis par courriel, y compris tout fichier joint, peut contenir des renseignements qui sont confidentiels, qui sont protégés par le secret professionnel ou qui ne peuvent être divulgués aux termes des lois applicables et s'adressent exclusivement au(x) destinataire(s) indiqué(s) ci-dessus. La distribution, la diffusion, l'examen ou la reproduction du contenu du courriel par une autre personne que le(s) destinataire(s) voulu(s) sont strictement interdits. Si vous recevez ce message par erreur, veuillez le supprimer définitivement et en aviser l'expéditeur immédiatement par retour du courriel.