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.