P.U.  13 (2000-2001)

 

 

IN THE MATTER OF the

PUBLIC UTILITIES ACT,

R.S.N. 1990, c. P-47, as amended

(“the Act”)

                      AND

 

IN THE MATTER OF the application

by Newfoundland Power Inc. (“the

Applicant”) for approval of a contribution

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

to serve Seasonal Customers (the “Customer”)

pursuant to Section 41(5) of the Act.

 

 

 

 

WHEREAS the Applicant is a corporation duly organized and existing under the laws of the Province of Newfoundland and Labrador, is a public utility within the meaning of the Act, and is also subject to the provisions of the Electrical Power Control Act, 1994; and

 

WHEREAS the Customers consist of sixty-one Seasonal Customers whose seasonal residences are located in an area known as Second Junction Pond, Jack’s Pond and Whelan’s Pond near Brigus Junction ; and

 

WHEREAS the Customers have requested that the Applicant provide their seasonal residences with single-phase electrical service which, in order to so provide, requires the construction of a single-phase extension of 11,276 metres (the “Extension”); and

 

WHEREAS the Extension will not be jointly used by the Applicant and NewTel Communications Inc.; and

 

WHEREAS a Contribution in Aid of Construction (“CIAC”) has been calculated in accordance with Clause 5 (b) and 5 (c) of the CIAC Policy: Distribution Line Extension To Residential and Seasonal Residential Customers approved by Order No. P.U. 7 (1997-98) dated the 30th day of September 1997 (the “Policy”) and the CIAC thus calculated is Five thousand three hundred seventy-three dollars and forty-two cents ($5,373.42), including HST; and

 

WHEREAS the Extension includes three continuous sections of more than 300 metres of line with no customer premises located thereon which, in accordance with Clause 5 (e) of the Policy, are to be deemed separate line extensions, and the Applicant proposes to deviate from the literal wording of Clause 5 (e) by including those sections of the line in a single CIAC calculation; and

 

WHEREAS the construction cost of the Extension is $325,900 and Clause 12 (a) of the Policy requires all Line extensions involving CIACs where the construction costs are estimated to be greater than $25,000 to be submitted to the Board for approval; and

 

WHEREAS Clause 12 (b) of the Policy requires that all deviations from the Policy in the calculation of CIACs for Line extensions must be submitted to the Board for approval; and

 

WHEREAS Clause 12 (c) of the Policy requires that all CIACs for Main Line extensions for primarily seasonal residential customers be submitted to the Board for approval; and

 

WHEREAS the proposed CIAC is necessary to ensure that the Applicant’s investment in the Extension is compensatory over the useful life of the Extension and will not be to the detriment of the Applicant’s other customers; and

 

WHEREAS the proposed expenditures on the Extension are necessary for the Applicant to provide service and facilities to the Customers which are reasonably safe and adequate and just and reasonable as required pursuant to s.37 of the Act; and

 

WHEREAS the Board is satisfied that the deviation from the requirements of Clause 5 (e) of the Policy is reasonable in the circumstances.

 

IT IS THEREFORE ORDERED THAT:

 

Pursuant to Section 41(5) of the Act, the Board approves

(a)    the CIAC in the amount of  Five thousand three hundred seventh-three dollars and forty-two cents($5,373.42), including HST, as calculated under the Policy.

 

                                                                                               

DATED at St. John’s, Newfoundland this 6th day of  July, 2000.

 

 

                                                                                                ________________________________

                                                                                                D.A. Vardy,

                                                                                                Chair & Chief Executive Officer.

 

                                                                                                                                                           

                                                                                                ______________________________

                                                                                                Darlene Whalen, P.Eng.,

                                                                                                Vice-Chairperson.

 

 

                                                                                                                                                           

                                                                                                G. Fred Saunders,

                                                                                                Commissioner.

 

__________________________

Barbara Thistle,

Assistant Board Secretary.

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