P.U.  15 (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 NewTel Communications Inc.

(“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 Customer will operate a telecommunications tower, located at Sheffield Lake, west of Baie Verte Junction; and

 

WHEREAS the Customer has requested that the Applicant provide its facility at Sheffield Lake with single phase electrical service which, in order to so provide, requires an upgrade of  7.5 km of existing NewTel Communications line and the construction of 7.3 km of additional single phase line (the “Extension”); and

 

WHEREAS the upgraded portion only of the Extension will be jointly used by the Applicant and NewTel Communications Inc.; and

 

WHEREAS a Contribution in Aid of Construction (“CIAC”) of the Extension has been calculated in accordance with Clause 5 (f) of the CIAC Policy; Distribution Line Extensions and Upgrades to General Service Customers, approved by Order No. P.U. 7 (1997-98) dated the 30th day of September 1997 (the “Policy”), which assumes the Extension will supply one service with an estimated peak demand of less than 10 kW, and the CIAC thus calculated is Two hundred twenty-eight thousand one hundred thirty dollars ($228,130.00), including HST; and

 

WHEREAS the CIAC was calculated in accordance with Clause (f) of the Policy because the construction design standard to be employed in the construction of the Extension is a different standard than the one on which the average cost factors used in the Policy are based, and this deviation from the Policy is necessary to avoid the over-recovery of costs from the Customer; and

 

WHEREAS the construction cost of the Extension is $202,831 and Clause 11(a) of the Policy requires that all Line Extensions or Upgrades involving CIACs in which the construction costs are estimated to be greater than $25,000 must be submitted to the Board for approval; and

 

WHEREAS the proposed expenditures on the Extension are necessary for the Applicant to provide service and facilities to the Customer which are reasonably safe and adequate and just and reasonable as required pursuant to s. 37 of the Act; 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 Board is satisfied that the deviation from the Policy is reasonable in the circumstances and will not be to the detriment of the Applicant’s other customers.

 

IT IS THEREFORE ORDERED THAT:

 

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

(a)    the CIAC in the amount of  Two hundred twenty-eight thousand one hundred thirty dollars ($228,130.00), including HST, as calculated under the Policy.

                                                                                               

DATED at St. John’s, Newfoundland this 26th day of  July, 2000.

 

 

                                                                                                ________________________________

                                                                                                D.A. Vardy,

                                                                                                Chair & Chief Executive Officer.

 

                                                                                                                                                           

                                                                                                ______________________________

                                                                                                Darlene Whalen, P.Eng.,

                                                                                                Vice-Chairperson.

 

 

                                                                                                                                                           

                                                                                                G. Fred Saunders,

                                                                                                Commissioner.

 

__________________________

G. Cheryl Blundon,

Board Secretary.

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