Board of Commissioners of Public Utilities

Newfoundland Power Inc. P.U. 1 (2003)

Application:

General Rate Application (the “Application”) by Newfoundland Power Inc. (“NP”) filed pursuant to Order No. P.U. 22 (2002-2003).

Decision:

1. The Schedule of Dates for the hearing of this Application is amended as set out in Appendix “A” - Item 2. – 2nd Revision.

2. The Order of Witnesses as set out in Order No. P.U. 27 (2002-2003) Appendix “A” – Item 3 – 1st Revision is rescinded.

Date Issued:

January 21, 2003

Newfoundland Power Inc. P.U. 2 (2003)

Application:

For approval of: (i) Revised Distribution Line Cost per metre for CIACs; (ii) Revised Distribution Plant Upgrade cost for CIACs; and (iii) Revised Contribution in aid of Construction (CIAC) Cost Factors.

Decision:

Newfoundland Power Inc.’s “Contribution in Aid of Construction Policy: Distribution Line Extensions to Residential and Seasonal Residential Customers” and “Contribution in Aid of Construction Policy: Distribution Line Extensions and Upgrades to General Service Customers” (Revised effective January 31, 2002) approved by the Board for use by Newfoundland Power during 2002 shall remain in effect for CIACs calculated during 2003.

Date Issued:

January 30, 2003

Newfoundland and Labrador Hydro P.U. 3 (2003)

Application:

To proceed with the construction and purchase of certain improvements to its property, pursuant to Section 41(3) of the Act.

Decision:

Pursuant to Section 41(3) of the Act, the Board approves the supplementary 2003 capital expenditure of $281,400 for the replacement of the timber retaining wall at the Grey River Fish Compensation Structure as set out in Schedule A to the Application.

Date Issued:

February 5, 2003

Newfoundland Power Inc. P.U. 4 (2003)

Application:

General Rate Application (the “Application”) by Newfoundland Power Inc. (“NP”) filed pursuant to Order No. P.U. 22 (2002-2003) relative to First Procedural Order P.U. 27 (2002-2003), Amended by P.U. 34 (2002-2003) and further Amended by P.U. 1 (2003).

Decision:

1. The Order of Witnesses is as set out in Appendix “A” – Item 3, attached to the Order.

2. The Rules of Procedure set out in Order No. P.U. 27 (2002-2003) Appendix “A” - Item 4 are rescinded and are replaced with the Rules of Procedure as set out in Appendix “A” – Item 4, attached to the Order.

Date Issued:

February 26, 2003

Newfoundland Power Inc. P.U. 5 (2003)

Application:

General Rate Application (the “Application”) by Newfoundland Power Inc. (“NP”) filed pursuant to Order No. P.U. 22 (2002-2003) relative to an interlocutory application from Newfoundland Power.

Decision:

1. The Board will not hear evidence or submissions relating to the setting and fixing of a rate of return on common equity for Newfoundland Power to the extent that it is beyond the Board’s jurisdiction.

2. Except as set out in Paragraph 1 above the relief sought by Newfoundland Power is denied.

Date Issued:

February 27, 2003

Newfoundland and Labrador Hydro P.U. 6 (2003)

Application:

Ex Parte Application by Newfoundland and Labrador Hydro (the “Applicant”) for the approval, pursuant to Section 71 of the Act, of an amendment to the Rules and Regulations pertaining to the “Hydro Delivery Points” for the supply of power and energy to its Industrial Customers.

Decision:

1. The Rules and Regulations of service by the Applicant of each respective industrial customer, as set out in the industrial customer power contracts, are hereby approved as amended so that they read as follows:

(A) Abitibi-Consolidated Company of Canada (Stephenville Division)

1.01(i) “Hydro Delivery Points” means the 230,000 volt bus at the Customer’s premises at its Stephenville paper mill, or at such other location or locations that Hydro and the Customer mutually agree in writing;

(B) Abitibi-Consolidated Company of Canada (Grand Falls Division)

1.01(n) “Hydro Delivery Points” means: (i) the 13,800 volt bus bar located in Hydro’s frequency converter building at Grand Falls, (ii) the 6,600 volt bus bar located in Hydro’s frequency converter building at Grand Falls, and (iii) at the point where Hydro’s transmission line, TL-235, connects to the Customer’s 230,000 volt disconnect switch for the Customer’s transformer, T3, located adjacent to Hydro’s frequency converter building at Grand Falls, or at such other location or locations that Hydro and the Customer mutually agree in writing;

(C) Corner Brook Pulp and Paper Limited

1.01(l) “Hydro Delivery Points” means: (i) Hydro’s 66,000 volt bus in its Massey Drive Terminal Station at Corner Brook, (ii) the line side insulators of the Customer’s terminal structure near the east end of its Deer Lake Power Plant being the termination point of Hydro’s 66,000 volt line, and (iii) the 66,000 volt 60 cycle bus and 50 cycle buses in the No. 1 an No. 2 Substation of the Customer, or at such other location or locations that Hydro and the Customer mutually agree in writing;

(D) North Atlantic Refining Limited

1.01(i) “Hydro Delivery Points” means the 13,800 volt bus on Hydro’s transformers on the north side of the road adjacent to the Customer’s premises in Come by Chance, or at such other location or locations that Hydro and the Customer mutually agree in writing.

2. Amendments to the definition of “Hydro Delivery Points” in the Rules and Regulations to reflect changes to the location at which power and energy is delivered by Hydro to the Industrial Customers shall not be effective until the Board is notified in writing of such changes and a copy filed with the Board.

Date Issued:

February 28, 2003

Newfoundland Power Inc. P.U. 7 (2003)

Application:

General Rate Application (the “Application”) by Newfoundland Power Inc. (“NP”) filed pursuant to Order No. P.U. 22 (2002-2003) and in the Matter of a Mediation Report filed with respect to certain issues regarding cost of service allocation, rate structure and tariff matters arising from the Application

Decision:

1. The Board accepts and adopts the Mediation Report attached as Schedule A to this Order, with the exception of paragraph “j” which is replaced as follows to account for a typographical error noted by the parties after consent was given:

j. To the extent possible, there should be no adverse customer rate impacts. Any overall revenue change should be distributed equally to each class of customers. With the exception of any change in basic customer charges (see issue “n” below), no customer should have a rate change that produces an annual cost change that is more than twice the system average (unless the dollar impact is minimal).²

2. The Board accepts the proposed resolution of the “Issues on Which the Parties Agree” as set out in the Mediation Report and will incorporate the same in its final decision rendered on the Application.

3. The Board reserves decision on the “Remaining Issue on Which Parties Do Not Agree” as set out in the Mediation Report.

Date Issued:

March 5, 2003

Newfoundland Power Inc. P.U. 8 (2003)

Application:

General Rate Application (the “Application”) by Newfoundland Power Inc. (“NP”) filed pursuant to Order No. P.U. 22 (2002-2003) and in the Matter of request from the Consumer Advocate to issue certain subpoenas.

Decision:

1. The request of the Consumer Advocate for the issuance of subpoenas to Mr. Alex Knight, Mr. Gerard Locke, Mr. Brian Martin and Mr. Bruce Gilbert is denied.

2. The request of the Consumer Advocate for the issuance of a subpoena to Mr. Bruce Chafe is granted in the form as set out in Schedule “A” to this Order.

Date Issued:

April 3, 2003

Newfoundland and Labrador Hydro P.U. 9 (2003)

Application:

Application to issue Debenture/s in aggregate not to exceed $150,000,000 during the year ending December 31, 2003, pursuant to Section 91 of the Act.

Decision:

Approval is granted to issued Debenture(s) with an aggregate value not to exceed $150,000,000 Canadian in the principal amount subject to the certain conditions that are included in the Order.

Date Issued:

April 17, 2003

Newfoundland and Labrador Hydro P.U. 10 (2003)

Application:

Application for approval of certain amendments to the Rules and Regulations pertaining to several classes of Hydro’s Rural Customers pursuant to Section 71 of the Act.

Decision:

1. The following amendments to the provisions of Schedule A (the Schedule of Rates) and of Schedule B (the Rules and Regulations) to Order No. P.U. 21 (2002-2003) are hereby approved and are incorporated in the revised portions of Schedule A and Schedule B:

(a) The definition of “Government Departments and Agencies” is deleted and replaced by the following definition of “Government Departments”, which amendment would occur at subparagraph 1(a)(xii) of Schedule B:

“Government Departments” means electric service accounts of Provincial or Federal government departments, agencies, boards, commissions, and crown corporations but excludes hospitals, fish plants, churches, schools, community halls, municipal buildings and like facilities.”

(b) The references to “Government Departments and Agencies” shall be substituted by the reference to “Government Departments” which substitutions would occur in the following provisions of Schedule A:

- In the “Availability” section of page 11 of 30 (Rate No. 4.1D);

- In the title and the “Availability” sections of page 12 of 30 (Rate No. 1.2G);

- In the title and the “Availability” sections of page 13 of 30 (Rate No. 2.5G); and

- In the title and the “Availability” sections of page 14 of 30 (Rate No. 4.1G)

(c) Amending the list of rate classes for the Happy Valley-Goose Bay area, found at page 2 of 15, subsection 2(a) of Schedule B by

- renumbering class 3.1H Secondary Energy as class 5.1H;

- inserting the rate class of 3.1H Electric Heating General Service; and

- deleting the words “and Agencies” in the descriptors for Rate Classes 1.2G, 2.5G and 4.1G.

(d) (i) Amending Schedule A by adding the previously existing $1.15 per fixture per month rate for streetlights in Labrador City where those streetlights are not owned by the Applicant, which rate class shall be Rate No. 4.12W found at a new page 30A of 30; and

(ii) Amending Schedule B by adding a reference to this rate class 4.12W on page 3 of 15 of Schedule B;

(e) (i) Amending Schedule A on page 29 of 30, for rate 4.1W by substituting for the reference date for the installation or replacement of high pressure sodium streetlights of “after December 31, 2001”, the reference date of “on or after September 1, 2002”;

(ii) Amending Schedule A on page 30 of 30, for rate 4.11W by substituting for the reference date “as of December 31, 2001”, the reference date of “as of September 1, 2002”; and

(iii) Amending Schedule B, on page 3 of 15, paragraph 2(a), by substituting for the date reference for Rate 4.11W, the words “Installed on or after September1, 2002” in the place of the words “Installed as of December 31, 2001”.

2. For those customer owned streetlights in Labrador which have been the subject of payments by the customer under rate 4.11W, the Applicant shall refund to that customer the difference between the amount it paid under rate 4.11W and the amounts payable under rate 4.12W.

3. The Applicant shall pay the Board’s expenses arising from this Application.

Date Issued:

April 17, 2003

Newfoundland Power Inc. P.U. 11 (2003)

Application:

For approval of a contribution in aid of construction (“CIAC”) for a line extension to serve seasonal customers pursuant to section 41(5) of the Act.

Decision:

Pursuant to Section 41(5), the Board approves the CIAC in the amount of $5,720.13, including HST, for each seasonal customer as calculated under the Policy.

Date Issued:

April 30, 2003

Newfoundland and Labrador Hydro P.U. 12 (2003)

Application:

For approval, pursuant to section 41(3) of the Act, to proceed with the construction and purchase of certain improvements to its property.

Decision:

Pursuant to section 41(3) of the Act, the Board approves the supplementary 2003 capital expenditure of $138,000 for the addition of self-dyked fuel storage at the diesel generating facility in Rigolet as set out in Schedule A to the Application.

Date Issued:

April 30, 2003

Newfoundland Power Inc. P.U. 13 (2003)

Application:

For approval of a contribution in aid of construction (“CIAC”) for a line extension to serve the City of St. John’s, pursuant to section 41(5) of the Act.

Decision:

Pursuant to Section 41(5), the Board approves the CIAC in the amount of $35,779.00, including HST, as calculated under the Policy to provide three-phase service to a pumping station for the City of St. John’s.

Date Issued:

April 30, 2003

Newfoundland and Labrador Hydro P.U. 14 (2003)

Application:

For approval of a contribution in aid of construction (“CIAC”) for a line extension to serve a Pumping Station located in the Town of Seldom, Fogo Island, pursuant to section 41(5) of the Act

Decision:

Pursuant to Section 41(5), the Board approves the CIAC in the amount of $78,452.59, including HST, as calculated under the Policy for the supply of three-phase electrical service to a pumping station located in the Town of Seldom, Fogo Island.

Date Issued:

April 30, 2003

Newfoundland Power Inc. P.U. 15 (2003)

Application:

For approval of a contribution in aid of construction (“CIAC”) for a line extension to serve seasonal customers, pursuant to section 41(5) of the Act.

Decision:

Pursuant to Section 41(5), the Board approves the CIAC in the amount of $2,417.68, including HST, for each seasonal customer, as calculated under the Policy.

Date Issued:

April 30, 2003

Newfoundland and Labrador Hydro P.U. 16 (2003)

Application:

For approval of: (1) its 2004 Capital Budget pursuant to Section 41(1) of the Act; (2) its 2004 capital purchases, and construction projects in excess of $50,000 pursuant to Section 41(3)(a) of the Act; and (3) its estimated contributions in aid of construction for 2004 pursuant to Section 41(5) of the Act.

Decision:

1. The motion of the Industrial Customers for an oral hearing is hereby dismissed.

2. The motion of the Industrial Customers for the consolidation of the capital budget application and the general rate application is hereby dismissed.

3. The public hearing of the capital budget application will begin at 9:00 A.M., on June 25, 2003, unless otherwise directed by the Board.

Date Issued:

May 30, 2003

Newfoundland and Labrador Hydro P.U. 17 (2003)

Application:

Decision:

The public hearing of the capital budget application will begin at 9:00 A.M. on Monday, July 7, 2003, unless otherwise directed by the Board.

Date Issued:

June 11, 2003

Newfoundland Power Inc. P.U. 18 (2003)

Application:

For approval of rate stabilization and municipal tax adjustments to be applied to the rates of the Applicant for the period July 1, 2003 to June 30, 2004 pursuant to section 71 of the Act pursuant to section 71 of the Act.

Decision:

The Board approves the Rate Stabilization Adjustment factor of 0.326 cents/kWh and the MTA factor of 1.02438 to be applied to all bills based on meter readings for the period July 1, 2003 to June 30, 2004.

Date Issued:

June 19, 2003

Newfoundland Power Inc. P.U. 19 (2003), Appendices, Summary

Application:

General Rate Application (the “Application”) by Newfoundland Power Inc. (“NP”) filed pursuant to Order No. P.U. 22 (2002-2003).

Decision:

Please click order to view details

Date Issued:

June 20, 2003

Newfoundland and Labrador Hydro P.U. 20 (2003)

Application:

Decision:

Hydro’s proposed 2004 expenditure, project C-2, Purchase and Install Transformer, is hereby approved without prejudice to the parties right to 1) address argument on the sufficiency of the documentation supplied to support a capital project generally or the principles and procedures applied in the capital budget process, or 2) advocate an alternative position on the project in other proceedings as they may deem appropriate.

Date Issued:

July 10, 2003

Newfoundland Power Inc. P.U. 21 (2003)

Application:

For approval of a contribution in aid of construction (“CIAC”) for a line extension to serve seasonal customers located at Mansfield Pond, near Brigus Junction, pursuant to section 41(5) of the Act.

Decision:

Pursuant to Section 41(5), the Board approves the CIAC in the amount of $6,628.13, including HST, for each seasonal customer as calculated under the Policy.

Date Issued:

July 10, 2003

Newfoundland Power Inc. P.U. 22 (2003)

Application:

For approval of the balance of the weather normalization reserve as of December 31, 2003 pursuant to Sections 69 (3) and 78 of the Act.

Decision:

Pursuant to Sections 69 (3) and 78, the Board approves the weather normalization reserve of a Negative Balance of $10,918,978 as at December 31, 2002.

Date Issued:

July 11, 2003

Newfoundland Power Inc. P.U. 23 (2003)

Application:

General Rate Application (the “Application”) by Newfoundland Power Inc. (“NP”) filed pursuant to Order No. P.U. 22 (2002-2003).

Decision:

1. The forecast average rate base for 2003 and 2004 is hereby fixed and determined to be $672,215,000 and $703,102,000 respectively.

2. The Board hereby fixes and determines a rate of return on rate base for 2003 of 8.96% and for 2004 of 8.91%.

3. The allowed range of rate of return on rate base for 2003 shall be 8.78% to 9.14% and for 2004 shall be 8.73% to 9.09%.

4. Pursuant to Section 70(1) of the Act, the Board hereby approves the Schedule of Rates, Tolls and Charges of NP attached hereto and marked Schedule “A”, to be effective on monthly bills issued on and after August 1, 2003, as well as other charges which are billed on and after that date.

5. The Board hereby approves NP’s proposal for the rebate of 2001 excess revenue of $944,000 plus HST to customers.

6. Pursuant to Section 75(3) of the Act the Board hereby approves NP’s proposal to rebate an amount of $2,696,000, which is the variance between revenue generated based upon 2003 interim rates and the revised 2003 test year revenue requirement, plus HST, to customers.

7. NP shall file a report to the Board no later than October 31, 2003, illustrating the distribution of the rebate in the amount of $3,640,000 to the various customer classes using actual revenues for the 12 months ending July 2003.

8. Pursuant to Section 71 of the Act the Board hereby approves the Rules and Regulations attached hereto as Schedule “B”, to be effective August 1, 2003.

9. The Board hereby approves the revised definition of the Excess Revenue Account attached hereto and marked as Schedule “C”.

Date Issued:

July 21, 2003

Newfoundland and Labrador Hydro P.U. 24 (2003)

Application:

Application by Newfoundland and Labrador Hydro (the “NLH”) for approval, inter alia, rates to be charged its customers (the “Application”) pursuant to the Electrical Power Control Act, 1994 and the Public Utilities Act R.S.N. 1990, Chapter P-47

Decision:

1. Each party shall file an issues list in accordance with the schedule of pre-hearing dates setting out all those issues that the party intends to address in the proceeding. The issues list is filed without prejudice to the party’s ability to canvass any issue in the proceeding.

2. The Registered Intervenors in this proceeding are set out in Appendix “A” to this Order.

3. The Schedule of Pre-hearing Dates as set out in Appendix “B” to this Order shall be observed by the parties, unless otherwise directed by the Board.

4. The Rules of Procedure as set out in Appendix “C” to this Order shall be observed by the parties, unless otherwise directed by the Board.

Date Issued:

July 23, 2003

Newfoundland and Labrador Hydro P.U. 25 (2003)

Application:

Decision:

1. The motion of the Towns of Labrador City and Wabush is denied.

2. The issue of costs will be addressed upon motion of a party at the conclusion of the proceeding pursuant to Section 90(1) of the Act.

Date Issued:

July 23, 2003

Newfoundland Power Inc. P.U. 26 (2003)

Application:

Application by Newfoundland Power Inc. (the “Applicant”) for approval of capital expenditures supplemental to the Applicant’s approved 2003 capital budget, to proceed with the construction and purchase of certain improvements to its property pursuant to Section 41 of the Act.

Decision:

Pursuant to Section 41of the Act, the Board approves:

a) the construction projects and capital purchases in excess of $50,000, as set forth in Schedule B to the Application; and

b) the revised 2003 capital budget as set forth in Schedule C to the Application.

Date Issued:

July 25, 2003

Newfoundland Power Inc. P.U. 27 (2003)

Application:

For approval of a contribution in aid of construction (“CIAC”) for a line extension

Decision:

Pursuant to Section 41(5), the Board approves the CIAC.

Date Issued:

August 14, 2003

Newfoundland and Labrador Hydro P.U. 28 (2003)

Application:

For approval of a contribution in aid of construction (“CIAC”) for a single-phase line extension to serve an Arts & Exploration Centre located at the Junction of Route # 360 and # 361, near Bay D’Espoir, pursuant to section 41(5) of the Act.

Decision:

Pursuant to Section 41(5), the Board approves the CIAC in the amount of $262,464.50, including HST, as calculated under the Policy for the supply of single-phase electrical service to an Arts & Exploration Centre to be located at the junction of Route # 360 and # 361, near Bay D’Espoir, as calculated under the Policy.

Date Issued:

August 14, 2003

Newfoundland and Labrador Hydro P.U. 29 (2003)

Application:

For approval (i) its 2004 Capital Budget pursuant to s.41 (1) of the Act; (ii) its 2004 capital purchases and construction projects in excess of $50,000 pursuant to s.41 (3)(a) of the Act; and (iii) its estimated contributions in aid of construction for 2004 pursuant to s. 41 (5) of the Act.

Decision:

- Pursuant to subsection 41(3)(a) of the Act, improvements and additions to Hydro’s property are approved for construction and purchases in excess of $50,000, as set out in Schedule A attached to this Order.

- A 2004 capital budget for improvements and additions to Hydro’s property in the amount of $27, 316,000 is approved pursuant to subsection 41(1) of the Act.

- Hydro’s proposed estimated contributions in aid of construction of $240,000 are approved provided that all such contributions are sought in accordance with the policies approved by the Board.

- Hydro shall pay costs to the Industrial Customers in the amount of the reasonable fees and expenses of Mr. Barreca as determined by the Board upon receipt of an invoice setting out his fees and expenses.

Date Issued:

September 5, 2003

Newfoundland and Labrador Hydro P.U. 30 (2003)

Application:

For approval of Lease of Office Space in support of NLH 2003 GRA, pursuant to section 41of the Act.

Decision:

Pursuant to Section 41 (3) the proposed six-month lease of office space in the Prince Charles Building for the amount of $2,600 per month, plus HST

Date Issued:

September 5, 2003

Newfoundland and Labrador Hydro P.U. 31 (2003)

Application:

For approval of Additional 2003 Capital Budget items, pursuant to section 41(3) of the Act.

Decision:

Pursuant to Section 41 (3) of the Act, the Board approves the supplementary 2003 capital expenditures of: (1) $306,000 for the reconfiguration of TL255 (Grandy Brook to Hope Brook); and (2) $205,220 for a Load Research Study.

Date Issued:

September 5, 2003

Newfoundland and Labrador Hydro P.U. 32 (2003)

Application:

A Motion by the Industrial Customers seeking an order that the expert’s reports proposed to be filed by Board Hearing Counsel be excluded from evidence on the basis that the filing of such reports raises concerns with respect to an apprehension of bias.

Decision:

The motion of the Industrial Customers is denied.

Date Issued:

September 23, 2003

Newfoundland Power Inc. P.U. 33 (2003)

Application:

Application for written consent to remove certain of NP’s diesel generating plants from service pursuant to Section 8 of the Act.

Decision:

1. Pursuant to Section 38 of the Act, the Board consents to and approves the decommissioning by NP of the St. John’s Diesel Plant; and

2. Pursuant to Section38 of the Act, the Board consents to and approves the decommissioning by NP of the Portable Diesel # 1 and # 2, after the 2.5 MW portable unit approved in P. U. 36 (2002-2003) is put into service at the Grand Bay Substation.

Date Issued:

September 28, 2003

Newfoundland and Labrador Hydro P.U. 34 (2003)

Application:

A Motion by the Towns of Labrador City and Wabush requesting that the hearings in Labrador scheduled to commence on November 3, 2003 be rescheduled to a later date convenient to all parties and the Board.

Decision:

The motion of the Towns of Labrador City and Wabush is hereby granted and the proceedings scheduled to commence on November 3, 2003 in Labrador are postponed.

Date Issued:

October 30, 2003

Newfoundland Power Inc. P.U. 35 (2003)

Application:

For approval of an application by Newfoundland Power Inc. for an Order pursuant to Sections 41 and 78 of the Act:

(a) approving its 2004 Capital Budget of $53,909,000; and

(b) fixing and determining its average rate base for 2002 in the amount of $573,337,000.

Decision:

1. Pursuant to section 41 (3) of the Act, improvement and additions to NP’s property are approved as follows:

Construction and purchases in excess of $50,000, as set out in Schedule B attached to this Order.

2. The amended 2004 Capital Budget for improvement and additions to NP’s property in an amount of $52,209,000 is approved pursuant to section 41(1) of the Act.

3. Unless otherwise directed by the Board, NP shall follow the guidelines as set out in Schedule A attached to this Order, which may be amended from time to time by the Board.

4. Unless otherwise directed by the Board, NP shall provide in conjunction with the 2005 Capital Budget Application, a status report on the 2004 capital budget expenditures showing for each project:

(i) the approved budget for 2004

(ii) the expenditures prior to 2004;

(iii) the 2004 expenditures to the date of the application;

(iv) the remaining projected expenditures for 2004;

(v) the variance between the projected total expenditures and the approved budget; and

(vi) an explanation of the variance.