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Orders Issued by the Board during 2007 under the Public Utilities Act Newfoundland and Labrador Hydro P.U. 1 (2007)
Application:
For approval, pursuant to Sections
70, 71 and 75 of the Act, of certain rules, regulations and rates pertaining to
the supply of electrical power and energy to one of its industrial customers,
Aur Resources Inc.
Decision:
1.
Page 2 of
Schedule “A” of PU 31(2006) shall be replaced with the attached page 2 of 2
Schedule “A”, attached hereto as Schedule “A”, which correctly sets out that
the rates established for Aur Resources Inc., in Order No. P.U. 31(2006) are
interim.
2.
The Board
approves, pursuant to section 75 of the Act:
(a)
Firm and Non-Firm
Rates for Aur Resources Inc., attached hereto as Schedule “B”, to be effective
for consumption on or after January 20, 2006 to and including September 30,
2006;
(b)
Firm and Non-Firm
Rates for Aur Resources Inc., attached hereto as Schedule “C”, to be effective
for consumption on or after October 1, 2006 to and including December 31, 2006;
and
(c)
Refund or credit
to Aur Resources Inc., of the difference for 2006 between the rates developed
in accordance with the Agreement and those approved in Order No. P.U. 1(2006)
3.
The Service
Agreement attached hereto as Schedule “D” is approved for the provision of
service to Aur Resources Inc.
4.
Hydro shall pay
the expenses of the Board incurred in connection with this matter.
Date Issued:
January 18, 2007
Newfoundland Power P.U. 2 (2007)
Application:
For approval, pursuant to Section
41(5) of the Act, of (i) a contribution in aid of construction (CIAC) for a
line extension to serve Domestic Customers residing in a cottage area located
in a Cottage Area at Nine Island Pond near Roaches Line and (ii) a deviation
from the CIAC Policy applicable to Domestic Customers in relation to the
calculation of the participation percentage as provided for in Clause 6 (a)(ii)
of the Policy.
Decision:
Pursuant to Section 41(5) of the
Act, the Board approves the Non-Refundable Contribution in Aid of Construction
in the amount of Three thousand three hundred ninety-three dollars and fifty-three
cents ($3,393.53), including HST, per Customer as calculated under the Policy,
and the deviation from the Policy as requested in the Application, to provide
single-phase service to Domestic Customers located in a Cottage Area located at
Nine Island Pond near Roaches Line.
Date Issued:
January 22, 2007
Newfoundland and Labrador Hydro P.U. 3 (2007)
Application:
For approval, pursuant to Section
75 of the Act, of rates flowing from the Rate Stabilization Plan (“RSP”)
components of the rates to be charged to Island Interconnected Industrial
Customers (“Industrial Customers”).
Decision:
1.
Pursuant to
section 75 of the Act, the Board hereby approves on an interim basis the RSP
Adjustment and Energy Rates for Hydro’s Industrial Customers as set out in the
attached Schedule “A” to be effective for consumption on or after January 1,
2007.
2.
Hydro shall pay
the expenses of the Board incurred in connection with this matter.
Date Issued:
January 29, 2007
Newfoundland and Labrador Hydro P.U. 4 (2007)
Application:
For approval of the lease of
office space for its Northern Region Operations (St. Anthony) pursuant to
Section 41 of the Act.
Decision:
1.
Pursuant to
Section 41 (3) of the Act, the Board approves the Applicant’s proposed two-year
lease of garage space at St. Anthony, for a rental amount of $3,750 per month,
plus HST.
2.
The Applicant
shall pay all expenses of the Board arising from this Application.
Date Issued:
March 20, 2007
Newfoundland and Labrador Hydro P.U. 5 (2007)
Application:
For approval of an automobile
lease pursuant to Section 41 of the Act.
Decision:
1.
Pursuant to
Section 41 (3) of the Act, the Board approves the Applicant’s proposed
three-year lease of an automobile in the amount of $562.69 per month (excluding
HST) for a total of $6,752.28 per annum.
2.
The Applicant
shall pay all expenses of the Board arising from this Application.
Date Issued:
March 26, 2007
Newfoundland Power P.U. 6 (2007)
Application:
For approval of a contribution in
aid of construction (CIAC) pursuant to Section 41(5) of the Act.
Decision:
1.
Pursuant to Section 41(5) of the Act, the Board approves the
Non-Refundable CIAC of Four thousand one hundred thirty-six dollars and
ninety-three cents ($4,136.93), including HST, as calculated under the Policy
to provide single-phase service to Domestic Customers located in the Cottage
Area described as Witless Bay Line (Phase 2) located near the community of
Witless Bay.
2.
The Applicant shall pay the expenses of the Board arising from this
Application.
Date Issued:
March 26, 2007
Newfoundland and Labrador Hydro P.U. 7 (2007)
Application:
For approval of a contribution in
aid of construction (CIAC) pursuant to Section 41(5) of the Act.
Decision:
1.
Pursuant to
Section 41(5) of the Act, the the Contribution in Aid of Construction in the
amount of Two thousand five hundred forty-seven dollars and ninety cents
($2,547.90), including HST, as calculated under the Policy to provide
single-phase service to 32 seasonal residential customers located at the
Northwest Arm Cottage Areas (Section C), Hare Bay, located off route 430, as
calculated under the Policy is approved.
2.
The Applicant shall pay all expenses of the Board arising from this
Application.
Date Issued:
April 11, 2007
Newfoundland and Labrador Hydro P.U. 8 (2007)
Application:
For approval of, inter alia, rate
to be charged its customers effective January 1, 2007.
Decision:
Rate Base and
Rate of Return
1.
Pursuant to Section 78 of the Act the Board approves the forecast
average rate base for the 2007 test year of $1,489,323,000.
2.
Pursuant to Section 80 of the Act the Board hereby allows a rate of
return on rate base, based on the 2007 test year, of 7.44%, within a range of
7.29% to 7.59%.
Rates, Rules and
Regulations
3.
Pursuant to Sections 70 and 75 of the Act the Board hereby
approves, on a final basis, the interim rates approved in Order Nos. P.U.
41(2006) and P.U. 3(2007) for Utility and Industrial Customers, as set out in
Schedule A of this Decision and Order, effective for consumption on and after
January 1, 2007.
4.
Hydro shall, within fifteen days of the Order approving final rates
for customers of NP, apply to the Board for approval of final rates and Rules
and Regulations for its Rural customers, and RSP Rules.
5.
Hydro shall distribute the balance of the reserve account
established in Order No. P.U. 46(2006) in accordance with the provisions of the
special adjustment to the RSP Hydraulic Production Variation Balance, as set
out in Schedule B of this Decision and Order.
Reporting
6.
Hydro shall file with the Board no later than May 31, 2007 a copy
of the terms which are proposed for the RSP review, setting out the terms of reference,
the specific review objectives, a list of participants, a planned timeline and
an outline of the review process.
7.
Hydro shall
include in its quarterly reports, beginning with its June 30, 2007 report and
ending with its December 31, 2008 report, an update on the progress of the
development of a comprehensive maintenance plan and associated reliability
standards.
8.
Hydro shall file
with the Board no later than October 31, 2007 a report updating the progress,
as of September 30, 2007, of the development of an acceptable peer group for
financial KPI’s.
9.
Hydro shall file
with the Board no later than June 30, 2008 a report outlining its five-year
strategic plan with respect to energy conservation initiatives, including a
description, timing, and cost of the program elements to be implemented by
Hydro and a copy of the CDM Potential Study.
Costs
10.
Hydro shall pay the expenses of the Board arising from this
Application, including the expenses of the Consumer Advocate incurred by the
Board, pursuant to Sections 90(2) and 117 of the Act.
11.
Hydro shall pay costs of the Industrial Customers in the amount of
$195,000 pursuant to Section 90(1) of the Act.
Date Issued:
April 12, 2007
Newfoundland Power P.U. 9 (2007)
Application:
For final approval of a schedule
of rates, tolls and charges approved by the Board on an interim basis in Order
No. P.U. 42 (2006).
Decision:
1.
Pursuant to
section 70 of the “Act”, the rates, tolls and charges as set out in Schedule A
are approved, to be effective on all electrical usage on and after January 1,
2007.
2.
NP shall pay the
costs and expenses of the Board in connection with this application.
Date Issued:
April 20, 2007
Newfoundland Power P.U. 10 (2007)
Application:
In the matter of the Purchased
Power Unit Cost Variance Reserve Account (the “Reserve Account”) Established by
Order No. P.U. 35 (2005), an application:
(i) Deferring Consideration of the Disposition of
the Balance in the Reserve Account; and
(ii) Approving a Revised Definition of the Reserve
Account in Newfoundland Power’s System of Accounts Pursuant to Sections 58 and
70 of the Act.
Decision:
1.
Deferral of
consideration of the Purchased Power Unit Cost Variance Reserve Account in to
the hearing of NP’s general rate application to be filed in 2007; and
2.
Pursuant to
Section 58 of the Act, the revised definition of the Purchased Power Unit Cost
Variance Reserve Account, as set out in Schedule A, to be included in NP’s
System of Accounts.
Date Issued:
April 24, 2007
Newfoundland and Labrador Hydro P.U. 11 (2007)
Application:
For approval of the Rate
Stabilization Plan component of the rates to be charged to Newfoundland Power
effective July 1, 2007, pursuant to Section 70 (1) of the Act.
Decision:
1.
The Board hereby
approves the rates to be charged by Hydro to Newfoundland Power, as set out in
Schedule A to this Order, to be effective for consumption on or after July 1,
2007.
2.
Hydro shall pay the expenses of the Board incurred in connection
with this matter.
Date Issued:
May 9, 2007
Newfoundland Power P.U. 12 (2007)
Application:
For approval of the balance of the
weather normalization reserve as of December 31, 2006, pursuant to Sections
69(3) and 78 of the Act.
Decision:
1.
NP’s weather
normalization reserve of a Negative Balance of $11,808,813 as at December 31,
2006 is hereby approved.
Date Issued:
May 10, 2007
Newfoundland Power P.U. 13 (2007)
Application:
For approval of
the:
i)
revised distribution line cost per meter for Contributions in Aid
of Construction (CIAC’s);
ii)
revised
distribution plant upgrade cost for CIAC’s; and
iii)
revised CIAC cost
factors.
Decision:
1.
The revised cost
factors submitted with the application and contained in the Schedules appended
to this Order are approved to be used in the calculation of all CIAC’s with
effect from May 15, 2007, and, where advantageous to customers of Newfoundland
Power, on all CIAC’s quoted but unpaid as of May 15, 2007.
2.
Newfoundland Power submit a revised CIAC Policy in its entirety
incorporating the revisions approved herein.
Date Issued:
May 10, 2007
Newfoundland and Labrador Hydro P.U. 14 (2007)
Application:
For final approval of rates to be
charged for the supply of power and energy to Rural Customers, and changes in
the Rules and Regulations applicable to the supply of electricity to Rural
Customers pursuant to Sections 70 and 71 of the Act.
Decision:
1.
Pursuant to Sections
70 and 71 of the Act, the Board approves the Rate Stabilization Plan rules, as
set out in Schedule A to this Order, effective December 31, 2006.
2.
Pursuant to
Section 71 of the Act, the Board approves the Rules and Regulations applicable
to providing service to Rural Customers as set out in Schedule B to this Order,
effective January 1, 2007.
3.
The rates, tolls
and charges for Hydro’s Rural customers are approved on a final basis, to be
effective for consumption on and after January 1, 2007, as set out in Schedule
C to this Order.
4.
Page 6 of 8,
Schedule A, Order No. P. U 8(2007) shall be amended and replaced as set out in
Schedule D to this Order.
5.
Hydro shall pay
all expenses of the Board arising from this Application.
Date Issued:
May 17, 2007
Newfoundland Power P.U. 15 (2007)
Application:
For approval of
the:
(i)
Rate Stabilization and Municipal Tax Adjustments to be applied to
the rates of NP for the period July 1, 2007 to June 30, 2008; and
(ii)
a Revised Schedule of Rates,
Tolls and Charges reflecting the amended Rate Stabilization and Municipal Tax
Factors, effective July 1, 2007 to June 30, 2008, pursuant to Section 70 (1) of
the Act.
Decision:
1.
The Rate Stabilization
Adjustment of 0.157 cents/kWh as set out in Schedule A to this Order and the
Municipal Tax Adjustment factor of 1.02490 as set out in Schedule B to this
Order, to be applied to all bills based on consumption on and after July 1,
2007 to June 30, 2008, are approved.
2.
The rates
proposed by Newfoundland Power to be effective on all electrical consumption on
and after July 1, 2007 to June 30, 2008, as set out in Schedule C to this
Order, are approved.
3.
Newfoundland Power shall pay the expenses of the
Board in connection with this Application.
Date Issued:
May 22, 2007
Newfoundland and Labrador Hydro P.U. 16 (2007)
Application:
For the approval of a change in
the rates to be charged for the supply of power and energy to Island
Interconnected customers (excluding Burgeo School and Library) and Isolated
Rural customers (excluding Government departments), pursuant to Section 70 of the
Act.
Decision:
1.
The rates
proposed by Hydro’s for its Island Interconnected customers (excluding Burgeo
School and Library) and Isolated Rural customers (excluding Government
departments) to be effective on all electrical consumption on and after July 1,
2007, as set out in Schedule A to this Order, are approved.
2.
Hydro shall pay
the expenses of the Board incurred in connection with this matter.
Date Issued:
June 19, 2007
Newfoundland Power P.U. 17 (2007)
Application:
Procedural Order re: General Rate
Application by Newfoundland Power Inc. to establish customer electricity rates
for 2008.
Decision:
The registered Intervenors, the
schedule of dates, and the procedures for the hearing of the Application are as
set out in Appendix “A” to this Order.
Date Issued:
June 22, 2007
Newfoundland and Labrador Hydro P.U. 18 (2007)
Application:
For approval of certain rules and
regulations pertaining to the supply of electrical power and energy to one of its industrial customer, Corner
Brook Pulp and Paper Limited (CBPP)
pursuant to Sections 70 and 71 of the Act.
Decision:
1.
The Board
approves the amendment of Clause 4.01 of the CBPP Service Agreement such that
the sentence that reads:
“Provided the Amount of Power on
Order is equal to or greater than 20,000 kW, the amount of Interruptible Demand
and Energy available shall be the greater of 10% of the Amount of Power on
Order and 5,000 kW.”
be deleted and replaced with:
“Provided the Amount of Power on
Order is equal to or greater than 20,000 kW, the amount of Interruptible Demand
and Energy available shall be the greater of 10% of the Amount of Power on
Order and 5,000 kW, but for the period from May 1, 2007 through to December 31,
2007, both inclusive, the amount of Interruptible Demand and Energy available
shall be 15,200 kW.”
2.
Hydro shall pay
the expenses of the Board arising out of this Application.
Date Issued:
June 28, 2007
Newfoundland Power P.U. 19 (2007)
Application:
Request for an amendment to Order
No. P. U. 13(2007) (Appendix C, Schedule D – Distribution Plan Upgrade Cost for
General Service CIACs).
Decision:
Board Order No. P. U. 13(2007) be amended
by deleting therefrom Schedule D, Distribution Plant Upgrade Cost for General
Service CIACs, and substituting therefore the Schedule appended to this Order.
Date Issued:
June 28, 2007
Newfoundland Power P.U. 20 (2007)
Application:
Approval of a Contribution in Aid
of Construction (“CIAC”) for a line extension to serve cottage area customers
(the “Customers”) located at pursuant to Section 41(5) of the Act
Decision:
1.
The Board
approves the Non-Refundable CIAC of Three thousand eight hundred fifteen
dollars and one cent ($3,815.01), including HST, as calculated under the Policy
to provide single-phase service to Domestic Customers located in the Cottage
Area described as Beachy Cove Pond, pursuant to s. 41(5) of the Act,
2.
The Applicant
shall pay all expenses of the Board arising from this Application.
Date Issued:
June 28, 2007
Newfoundland and Labrador Hydro P.U. 21 (2007)
Application:
For approval of rate rebates for
Hydro’s domestic customers served from the Labrador Isolated and L’Anse au Loup
(Labrador Straits) systems, pursuant to Section 70(1) of the Act.
Decision:
1.
The Board
approves the implementation by Hydro of a rebate to its domestic customers
served from the Labrador Isolated and L’Anse au Loup (Labrador Straits) system.
2.
The rebate will
be an amount credited to each customer’s bill such that the basic customer
charge and the lifeline energy block (seasonal) for those customers is equivalent to that charged for the
same service to Hydro’s residential Happy Valley-Goose Bay Labrador
Interconnected electricity customers.
3.
The rebate shall
be effective for bills issued on and after July 1, 2007.
4.
Hydro shall not
recover the rebate or any associated costs through rates charged to electricity
consumers.
Date Issued:
July 6, 2007
Newfoundland Power P.U. 22 (2007)
Application:
Approval of a Contribution in Aid
of Construction (“CIAC”) for a line extension to serve cottage area customers
(the “Customers”) located at pursuant to Section 41(5) of the Act
Decision:
1.
The Board
approves the Non-Refundable CIAC of Four thousand three dollars and thirty-two
cent ($4,003.32), including HST, as calculated under the Policy to provide single-phase
service to Domestic Customers located in the Cottage Area described as Paul’s
Lake located near Badger Lake, pursuant to s. 41(5) of the Act.
2.
The Applicant
shall pay all expenses of the Board arising from this Application.
Date Issued:
July 18, 2007
Newfoundland Power P.U. 23 (2007)
Application:
Approval of a Contribution in Aid
of Construction (“CIAC”) for a line extension to serve cottage area customers
(the “Customers”) located at pursuant to Section 41(5) of the Act
Decision:
1.
The Board
approves the Non-Refundable CIAC of Seven thousand six hundred seventy dollars
and seventy-eight cent ($7,670.78), including HST, as calculated under the Policy
to provide single-phase service to Domestic Customers located in the Cottage
Area described as Snow’s Pond, located near the community of North River,
Conception Bay, pursuant to s. 41(5) of the Act.
2.
The Applicant
shall pay all expenses of the Board arising from this Application.
Date Issued:
July 18, 2007
Newfoundland Power P.U. 24 (2007)
Application:
Approval to issue Series AL First Mortgage
Sinking Fund Bonds pursuant to Section 91 of the Act.
Decision:
1.
Approval is
hereby given to Newfoundland Power to issue Series AL First Mortgage Sinking
Fund Bonds in an amount of up to $75,000,000 and on the general terms set out
in the Application subject to the following conditions:
(a)
The Bonds shall
be issued on or before December 31, 2007.
(b)
Newfoundland
Power shall provide to the Board an Affidavit specifying the terms and
conditions of the Bond issue within five (5) days (non-business days excepted)
after closing the Bond issue. In
particular, the Affidavit shall set forth the following:
(i)
date of the issue;
(ii)
term;
(iii)
maturity date;
(iv)
principal amount;
(v)
coupon rate;
(vi)
particulars of sinking fund, if any;
(vii)
price to the public and to the underwriters;
(viii)
yield to the public;
(ix)
agency fee;
(x)
actual cost (i.e. yield) to Newfoundland Power; and
(xi)
any other material terms or conditions not contemplated at the date
of the Application but forming part of the negotiated terms and conditions.
(c)
Newfoundland
Power shall provide to the Board a copy of the Agency Agreement relating to the
Bond issue within five (5) days (non-business days excepted) after closing the
Bond issue.
(d)
The proceeds from
the Bond issue shall be used in the manner set out in paragraph 9 of the
Application, and Newfoundland Power shall report by Affidavit to the Board on
the disposition of the proceeds no later than January 15, 2008.
2.
All costs and
expenses incurred by the Board in connection with the Application shall be
borne by Newfoundland Power.
Date Issued:
July 26, 2007
Newfoundland and Labrador Hydro P.U. 25 (2007)
Application:
For the approval of (1) the construction
of off-loading ramps for mobile transmission line maintenance equipment, and
(2) the acquisition and installation of an ICP Spectrometer for the Holyrood
Generating Station, pursuant to Section 41(3) of the Act.
Decision:
1.
The additional
2007 capital expenditure of $231,000 to acquire an install an inductively
coupled plasma mass spectrometer for use at Hydro’s Holyrood Thermal Generating
Station is approved.
2.
The withdrawal by
Hydro of the Application for approval of additional 2007 capital expenditures
in relation to the off-loading ramps is accepted and this Application will be
set over and considered as part of Hydro’s 2008 capital budget application,
which is currently before the Board.
3.
Hydro shall pay
the expense of the Board arising from this Application.
Date Issued:
August 31, 2007
Newfoundland and Labrador Hydro P.U. 26 (2007)
Application:
For the approval of a contribution
in aid of construction (CIAC) for a three-phase line extension to serve the
Anaconda Mining Inc., mine site located at Pine Cove, off Route 418, pursuant
to Section 41(5) of the Act.
Decision:
1.
The Board
approves the contribution in aid of construction in the amount of $314,325.91,
including HST, for the supply of three-phase electrical service to one general
service customers, Anaconda Mining Inc., located at Pine Cove, off Route 418,
as calculated under the Policy, pursuant to s. 41(5) of the Act.
2.
The Applicant shall
pay all expenses of the Board arising from this Application.
Date Issued:
September 4, 2007
Newfoundland Power P.U. 27 (2007) see also P.U. 21 (2008)
Application:
Application for approval of (a)
its 2008 Capital Budget of $50,754,000; and (b) fixing and determining its
average rate base for 2006 in the amount of $752,917,000.
Decision:
1.
Pursuant to
Section 41 of the Act, NP’s capital purchases and construction projects in excess
of $50,000, as set out in Schedule A to this Order, are approved.
2.
Pursuant to
Section 41 of the Act, the 2008 Capital Budget for improvement and additions to
NP’s property in an amount of $ 50,754,000 is approved.
3.
Pursuant to
Section 78 of the Act, the rate base for the year ending December 31, 2006 is
hereby fixed and determined at $ 752,917,000.
4.
Unless otherwise
directed by the Board, NP shall file an annual report to the Board on its 2008
capital expenditures by March 1, 2009.
5.
Unless otherwise directed
by the Board, NP shall provide in conjunction with the 2009 Capital Budget
Application, a status report on the 2008 capital budget expenditures showing
for each project:
(i)
the approved budget for 2008;
(ii)
the expenditures prior to 2008;
(iii)
the 2008 expenditures to the date of the application;
(iv)
the remaining projected expenditures for 2008;
(v)
the variance between the projected total expenditures and the
approved budget; and
(vi)
an explanation of the variance.
6.
NP shall pay all
costs and expenses of the Board incurred in connection with the Application.
Date Issued:
September 19, 2007
Newfoundland Power P.U. 28 (2007)
Application:
Re: General Rate Application by Newfoundland
Power Inc. to establish customer electricity rates for 2008.
Decision:
1.
The remaining
schedule of dates for the proceeding will be as set out in Appendix “A”, unless
otherwise determined by the Board.
Date Issued:
October 5, 2007
Newfoundland Power P.U. 29 (2007)
Application:
Approval of a Contribution in Aid
of Construction (“CIAC”) for a line extension to serve cottage area customers
(the “Customers”) located at pursuant to Section 41(5) of the Act.
Decision:
1.
The Board
approves the Non-Refundable CIAC of One thousand six hundred nineteen dollars
and ninety-four cent ($1,619.94), including HST, as calculated under the Policy
to provide single-phase service to Domestic Customers located in the Cottage
Area known as Dribble Road located near Robinsons, pursuant to s. 41(5) of the
Act.
2.
The Applicant
shall pay all expenses of the Board arising from this Application.
Date Issued:
November 8, 2007
Newfoundland and Labrador Hydro P.U. 30 (2007)
Application:
Application for approval of (a) its
2008 Capital Budget of $45,061,000; (b) its 2008 capital budget purchases and
construction projects in excess of $50,000; (c) the proposed estimated
contributions in aid of construction for 2008; and (d) fixing and determining
its average rate base for 2006 in the amount of $1,472,184,000.
Decision:
1.
Pursuant to
Section 41 of the Act, Hydro’s proposed capital purchases and construction
projects in excess of $50,000 are approved, as set out in Schedule A to this
Order.
2.
Pursuant to
Section 41 of the Act, the following projects as proposed by Hydro are not
approved:
(i)
Upgrade Continuous Emissions Monitoring System (pg. B-39) $688,900;
(ii)
Construct Bushing Storage Building (pg. B-136) $334,900; and
(iii)
Public Address System – Holyrood (pg. B-192) $1,139,100.
3.
Pursuant to
Section 41 of the Act, the project “Replace Line Camp 98 – TL-228 (pg. B-89)
$500,000” is approved but the costs for this project shall not be recovered
from customers unless otherwise directed by the Board.
4.
Pursuant to
Section 41 of the Act, the 2008 Capital Budget for improvement and additions to
Hydro’s property in an amount of $ 42,898,100 is approved.
5.
Pursuant to
Section 78 of the Act, the rate base for the year ending December 31, 2006 is
hereby fixed and determined at $ 1,472,184,000.
6.
Unless otherwise
directed by the Board, Hydro shall file an annual report to the Board on its
2008 capital expenditures by March 1, 2009.
7.
Unless otherwise
directed by the Board Hydro shall provide, in conjunction with the 2009 Capital
Budget Application, a status report on the 2008 capital budget expenditures
showing for each project:
(i)
the approved budget for 2008;
(ii)
the expenditures prior to 2008;
(iii)
the 2008 expenditures to the date of the application;
(iv)
the remaining projected expenditures for 2008;
(v)
the variance between the projected total expenditures and the
approved budget; and
(vi)
an explanation of the variance.
8.
Unless otherwise directed by the Board Hydro shall file, commencing
with the 2009 Capital Budget Application, a five-year Capital Expenditure Plan
in accordance with the findings of the Board in this Decision and Order.
9.
Hydro shall file, in conjunction with the 2009 Capital Budget
Application, a report on the System Security Upgrade program in accordance with
the findings of the Board in this Decision and Order.
10.
Hydro shall pay all costs and expenses of the Board incurred in
connection with the Application.
Date Issued:
November 22, 2007
Newfoundland and Labrador Hydro P.U. 31 (2007)
Application:
Application for approval of the
Board to proceed with the construction of a wind-hydrogen diesel generation
project at Ramea, pursuant to Section 41(3) of the Act.
Decision:
1.
Hydro may proceed with the construction and installation of the
Wind-Hydrogen-Diesel System as proposed, in the amount of $8,794,000, with
spending of approximately $1,272,000 in 2007 and $7,522,000 in 2008.
2.
Unless otherwise ordered by the Board, ratepayers will not bear any
of the costs relating to the Wind-Hydrogen-Diesel System.
3.
Hydro shall treat all costs related to the Wind-Hydrogen-Diesel
System as non-regulated in accordance with the methodology, policies and
procedures in place for the treatment of non-regulated activities.
4.
Unless otherwise directed by the Board, Hydro shall provide a
quarterly update on the status of the Wind-Hydrogen-Diesel System in each
quarterly report to the Board, setting out details as to implementation and
operation of this system, capital and operating costs, variances from budget,
reliability and safety issues.
5.
Hydro shall file a report to the Board within ninety days of the
conclusion of the operational testing phase addressing in detail Hydro’s conclusions
and plans in relation to the Wind-Hydrogen-Diesel System.
6.
Hydro shall pay all expenses of the Board arising from this
application.
Date Issued:
November 30, 2007
Newfoundland Power P.U. 32 (2007)
Application:
General Rate Application by
Newfoundland Power Inc. to establish customer electricity rates for 2008.
Decision:
RATE
BASE AND RATE OF RETURN
1.
NP’s proposed
forecast average rate base for the 2008 test year of $812,212,000, calculated
in accordance with the Asset Rate Base Method, is approved.
2.
NP’s proposed
rate of return on average rate base for the 2008 test year of 8.37% in a range
of 8.19% to 8.55% is approved.
Rates,
Rules and Regulations
3.
The rates
proposed by NP are approved as set out in Schedule A of this Decision and
Order, effective for consumption on and after January 1, 2008.
4.
The changes to
the Rules and Regulations proposed by NP are approved and NP shall file with the
Board, within 30 days of this Order, NP’s Rules and Regulations revised to
reflect changes to:
i.
the Rate Stabilization Clause to provide for the recovery
through the Rate Stabilization Account of the Energy Supply Cost Variance
incurred through to the end of 2010, as set out in Schedule B of this Decision
and Order;
ii.
Regulation 9(b) and 9(c) to permit charges for temporary
connections, special facilities and relocations to be added to customer bills,
as set out in Section C of this Decision and Order; and
iii.
Regulation 10(d) to increase the rejected payment fee, as
set out in Schedule C of this Decision and Order.
AUTOMATIC
ADJUSTMENT FORMULA
5.
NP’s proposed use
of the Automatic Adjustment Formula, changed to reflect the adoption of the
Asset Rate Base Method for calculating rate base, to establish the rate of
return on rate base for three years following the test year is approved, unless
otherwise directed by the Board.
6.
NP shall, unless
otherwise directed by the Board, apply no later than November 30th in each year for the application of the Automatic Adjustment Formula to the
rate of return on rate base and for a revised Schedule of Rates, Tolls and
Charges effective January 1 in each year following.
7. NP shall, unless otherwise directed by the
Board, file its next general rate application with the Board by June 30, 2010
with a 2011 test year.
ACCOUNTING TREATMENT AND POLICIES8. NP’s
proposed amortizations are approved with effect from January 1, 2008 as
follows:
i. Amortization over
a three-year period of:
a)
$16,446,000 of 2005 unbilled revenue;
b)
$4,087,000 in revenue related to municipal tax timing
reconciliation;
c)
$11,586,000 in deferred 2006 and 2007 depreciation costs;
d)
$1,147,000 in deferred 2007 replacement energy costs
associated with the Rattling Brook Hydro Generating Plant refurbishment;
e)
the $1,342,000 balance in the Purchased Power Unit Cost
Variation Reserve Account; and
f)
$1,250,000 in recovery of hearing costs.
ii. Amortization over a five-year period of the
$6,800,000 balance in the Degree Day Component of the Weather Normalization
Reserve.
9.
NP’s proposal to
adjust the depreciation expense to amortize the accumulated reserve variance of
$700,000 over the four-year period 2008-2011 is approved.
10.
NP’s proposal to
use the depreciation rates as recommended in the 2006 Depreciation Study is
approved.
11.
NP’s proposal to
adopt the accrual method of accounting for income tax related to pension costs
is approved.
12.
NP’s proposal to
continue using the cash basis for recognizing expenses for other employee
future benefits is approved.
13.
NP’s proposal to
discontinue the Purchased Power Unit Cost Variation Reserve Account and
establish the Demand Management Incentive Account is approved, as set out in
Schedule D of this Decision and Order.
14.
NP’s proposal to
create a deferral account to true-up the income tax expense for the 2008 test
year and subsequent years until its next general rate application to reflect
the proposed 2008 corporate tax changes announced by the Federal Government on
October 30, 2007 is approved, with the disposition of the account balance, if
any, to be subject to a further order of the Board.
15.
NP shall file
with the Board, no later than December 31, 2011 a new depreciation study
related to plant in service as of December 31, 2010.
Reporting
16.
NP shall, unless
otherwise directed by the Board, file with the Board, on or before March 31,
2008, a fair market value determination for insurance services recommending an
appropriate charge-out rate.
17.
NP shall, unless
otherwise directed by the Board, report to the Board within 90 days of the
finalization of the CEA reliability performance indicators as to the
incorporation of these standards into the existing regulatory framework for NP.
18.
NP shall, unless
otherwise directed by the Board, as part of its next general rate application
include detailed information concerning the method used to forecast its test
year FTEs and labour expense, as well as an explanation of the assumptions used
to determine the forecast vacancies.
19.
NP shall, unless
otherwise directed by the Board, as part of its next general rate application
include a report on the operation of the Demand Management Incentive Account.
20.
NP shall, unless
otherwise directed by the Board, provide an update as part of its quarterly
reporting to the Board on the status of the AcSB’s considerations of the
transition to IFRS.
21.
NP shall, unless
otherwise directed by the Board, provide an update as part of its quarterly
reporting to the Board on the progress of NP’s retail customer rate review.
22.
NP shall, unless
otherwise directed by the Board, file as a part of its annual return to the
Board, information relating to changes in deferred charges, including pension
costs.
23.
NP shall, unless
otherwise directed by the Board, file:
i.
With its annual return, a modified schedule calculating the
embedded cost of debt for the reporting year to identify specifically the
causes of variations in the actual embedded cost of debt from the cost forecast
for the test year; and
ii.
With its annual return, where in a year the actual rate of
return on equity is greater than 50 basis points above the calculation of cost
of equity for the same year, a report explaining the circumstances and facts
contributing to the difference.
HEARING
COSTS
24. NP shall pay the expenses of the Board arising
from this Application, including the expenses of the Consumer Advocate incurred
by the Board.
Date Issued:
December 19, 2007
Newfoundland and Labrador Hydro P.U. 33 (2007)
Application:
Application for Rate Changes to
Labrador Interconnected Customers (Interim Order).
Decision:
1.
The decrease of the
monthly amount of the 2008 automatic rate adjustment in the Rural Rate
Alteration for the Labrador Interconnected customers in the Rate Stabilization
Plan from $92,560 to $32,433, is approved on an interim basis; and
2.
The Schedule of
Rates for the Labrador Interconnected customers attached in Schedule A is
approved on an interim basis, effective January 1, 2008; and
3.
Hydro shall pay
all expenses of the Board arising from this Application.
Date Issued:
December 21, 2007
Newfoundland and Labrador Hydro P.U. 34 (2007)
Application:
Application for Rate Changes to
Industrial Customers (Interim Order).
Decision:
1.
Pursuant to
Section 75 of the Act, the Board approves, on an interim basis, the Industrial
Customer rates as attached in Schedule A, to be effective for consumption on
and after January 1, 2008, until a final Order of the Board with respect to
Industrial Customers’ rates for 2008.
2.
Hydro shall pay
all expenses of the Board arising from this Application.
Date Issued:
December 21, 2007
Newfoundland and Labrador Hydro P.U. 35 (2007)
Application:
An application by Newfoundland and
Labrador Hydro ("Hydro") for approval of a change in the rates to be
charged for the supply of power and energy to Island Interconnected customers
(excluding Burgeo school and library) and Isolated Rural customers (excluding
Government Departments), pursuant to Sections 70 and 71 of the Act.
Decision:
1.
The Board
approves on an interim basis the rates as attached in Schedule A to be
effective for consumption on and after January 1, 2008 until a final order of the
Board with respect to the within matter.
2.
The continuation
of the rebate to Hydro's domestic customers served from the Labrador Isolated
and L'Anse au Loup (Labrador Straits) system is approved on an interim basis.
3.
Hydro shall pay
all expenses of the Board arising from this Application.
Date Issued:
December 24, 2007
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