7 July 2006 Mr. Robert J. Pellatt Commission Secretary British ...

System Operations - $2.6 million favourableBritish Columbia Utilities CommissionInformation Request 1.16.0Dated 19 June 2006British Columbia Transmission CorporationResponse Issued 7 July 2006British Columbia Transmission CorporationTransmission Revenue Requirement ApplicationApproximately $1.8 million is due to work not performed due to resource constraints byBC Hydro and ABSU service providers. A further $0.5 million in work was reduced inscope in F2006 and $0.3 million in membership costs were favourable due to the reversalof a F2005 year end accrual and stronger Canadian dollar.System Planning - $1.2 million favourableApproximately $1.2 million relating to work not performed due to BCTC resourceconstraints caused by increased workload associated with interconnection studies andthe BC Hydro Open Call for Power. This internal resource constraint resulted in lesssurvey and investigation work being assigned to BC Hydro Engineering Services. Thework will be addressed in F2007.Grid West Loan Write-off - $0.9 million unfavourableBCTC provided funding to Grid West as part of its participation in Grid West. In January2006 BCTC decided to suspend funding for the next phase of Grid West’s development.On April 11, 2006, Grid West Board of Directors voted to dissolve the corporation andwind-up affairs. Grid West currently has few tangible assets that would serve ascollateral for the outstanding loans. As a result of these events BCTC decided to writeoff the loan in F2006. See Section 13.2 of the Application for more information.Insurance expense - $0.3 millionForecast insurance expense was higher than planned based on additional premiums toextend coverage to the end of the fiscal year. BCTC’s insurance coverage waspreviously based on a year ending December 1 and BCTC revised the coverage period tomatch the fiscal year period.Transfers to Deferral AccountsARegulatory - $1.7 millionThe F2006 annual budget for Regulatory expenditures was $3.3 million. Asdescribed in Section 12.2.4 the transfer to the Regulatory Deferral Account waslargely as a result of expenses that were planned as OMA but charged to capitalas they related to VITR. Reflecting on the experience gained in F2006, theRegulatory F2007 expenses have been budgeted to support the expected level ofnon-capital activity.BGrid West - $0.7 millionThe F2006 annual budget for Grid West expenditures was $1.5 million. Asdescribed in Section 12.2.5 and Section 13 of the Application, the transfer to theGrid West Deferral Account was largely the result of BCTC’s decision to suspendthe funding of the next phase of Grid West development. BCTC does not plan to