BC Hydro

970 Burrard Street - Vancouver B.C. V6Z1Y3
Telex 04-54512

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28 September 1987 i a

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The Corporation of the District
of Pitt Meadows J

12007 Harris Road a

Pitt Meadows, B. C.

VOM 1P0

Attention: J. Lowrie
Director of Engineering Services

Dear Sirs: .

I am in receipt of your letter of 17 September wherein you, on
behalf of council, are objecting to the minimum charge formula which is

applied to your demand metered pump stations. eo

ny

If you examine the tariff for schedules 1200, 1201, 1210 and
1211, you will note that the minimum charge is the greater of:

Ld

1. Eleven dollars and nine cents ($11.09) per month, or

2. 50% of the highest maximum demand charge billed in any
month wholly within an on-peak period during the
immediately preceding eleven months. For purposes of
this provision, an on-peak period commences on 1 November
in any one year and terminates on 31 March of the
following year.

Rate schedules 1200, 1201, 1210 and 1211 were developed with
the minimum charge as noted above specifically because B.C. Hydro must
provide generation, transmission and distribution facilities to meet
the demand, even if it is for short or limited periods such as is the
case with the 5 pump stations you refer to. It is important to note
that the minimum charge is based on 50% of the demand charge, not 50% of

the total billing.

The minimum charge provides B.C. Hydra with some protection
for the investment it must make, providing large capacities for short
periods where the revenue from energy sales does not retire the cost of
facilities required to service the load. This is not at al? unlike

veces £2

268