P.U.
17 (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
the Town of Heart’s Delight-Islington
(“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 water treatment plant in the Town of Heart’s
Delight-Islington; and
WHEREAS the
Customer has requested that the Applicant provide its facility at Heart’s
Delight-Islington with three phase electrical service which, in order to so
provide, requires an upgrade of 965 metres of single phase line to three phase
standard and the construction of 107 metres of additional three phase line (the
“Extension”); and
WHEREAS the
Extension will not be jointly used by the Applicant and NewTel Communications
Inc.; and
WHEREAS the maximum demand of the Customer is estimated
to be less than 75kW and in accordance with Regulation 5(b) of the Rates, Rules
and Regulations approved from time to time by the Board, a Contribution in Aid
of Construction (“CIAC”) is required to cover the cost of transformers,
equipment and any line extension or upgrade required to provide three phase
service, and the CIAC thus calculated is reduced by the value of any single
phase plant supported by the projected revenue from the Customer; and
WHEREAS a CIAC of the Line has been calculated in
accordance with Clause 5(b) of the distribution line CIAC Policy of the
Applicant for general service customers, approved by Order No. P.U. 7 (1997-98)
dated the 30th day of September 1997 (the “Policy”), which
calculation assumes the Extension will supply service to a water treatment
plant with an estimated peak demand of 32.4 kW, and the CIAC thus calculated is
Twenty-two thousand fifty-one dollars and twenty-five cents ($22,051.25),
including HST; and
WHEREAS the
construction cost of the Extension is $32,895 and Clause 11(a) of the Policy
states 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.
IT IS THEREFORE ORDERED THAT:
Pursuant to Section 41(5) of the Act, the Board approves the CIAC in the amount of Twenty-two thousand fifty-one dollars and twenty-five cents ($22,051.25) including HST, as calculated under the Policy.
DATED at St. John’s, Newfoundland this 10th day of August, 2000.
________________________________
David A. Vardy,
Chair & Chief Executive Officer.
______________________________
Darlene
Whalen, P.Eng.,
Vice-Chairperson.
__________________________
G. Cheryl Blundon,
Board Secretary.