From:	CAmos@wnhydro.com
Sent:	June-20-13 3:28 PM
To:	RRF
Cc:	mtucci@eda-on.ca; SReffle@whitbyhydro.on.ca
Subject:	Re: FW: RRFE Adjustment for Smart Meter Plant

 
We have some follow up items:  
 
#2 below - If we understand this correctly PEG chose 2011 to reflect whether an LDC 
had their SM approved.  If it is approved then the LDC already has it included in its 
Gross Plant (thus, has a '0'), if it is not approved it is still in the SM Variance Account 
and the Life-to-Date (LTD) amount needs to be added with the Gross Plant (thus, has a 
'1'), thus, both LDCs would be on a level playing field in 2011.    
 
We have 2 questions regarding this:  
 
a)   If an LDC had their SM approved in 2012, would they not need the SM added (thus, 
a '1') in 2011?  In 2012, this would change to a '0' as it would be included in their Gross 
Plant.  
 
b)   We traced Whitby Hydro's 2010 Costs and it appears that the SM costs have been 
included in this year, not just 2011.  Please see details below:  
 
I hope that you can follow my trail:  
 
2010 
*	In file 'TFP and BM Database Calculations 2' - Tab Capital Calculations for BM - 
Column AB has $16,245,189, if you trace Line 1706 back to Column E it is 
$159,335,794 which is your Tab Q Capital Data Column E Gross Plant for BM 
$154,523,241 Plus Column N Smart Meter Plant $4,812,553 = $159,335,794. 
*	
*	If you go to File 'Expanded Working Papers for Tables 24 and 25 (unit cost work)' 
Tab - BM Database, Column E Capital Cost it shows $16,245,189 (cell 
E740).  This is added to OM&A for a Total Cost in Column G of $24,830,059.  If 
you look in Tab 2009-2011 Cell D152 Total Cost, the amount is 
$24,830,059.  The Bilateral Output Index of .5251 is applied to the Total Cost for 
a Unit Cost of $47,287,187 in Cell E152.  This Unit Cost is averaged 2009 - 2011 
(this 2010 included) for an average of $46,426,168 in Cell H77.  In the same file if 
you go to Tab 'Peer Group Unit Cost (T24)' Cell B30 the value of $46,426,167.71 
is shown. 
*	
*	Thus, it appears that Whitby had SM applied in years other than 2011
 
 
 
Please help us understand this.  
 
 
Thanks,  
 
Chris  
 
 
Chris Amos, CPA CA 
Regulatory Consultant for 
Waterloo North Hydro Inc. 
519-888-5541 or 
519-886-5090 x 541