P.U.  19 (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 an Order rescinding

Order No. P.U. 13 (2000-2001), pursuant

to Section 76 of the Act, and approving a

revised contribution in aid of construction

(“CIAC”) for a line extension to serve

Seasonal Customers (the “Customers”)

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 by letter dated May 17, 2000, the Applicant quoted a contribution in aid of construction (CIAC) in the amount of Five thousand sixty dollars and forty-six cents ($5,060.46), including HST, as calculated under the Contribution in Aid of Construction Policy: Distribution Line Extensions to Residential and Seasonal Residential Customers approved by Order No. P.U. 7 (1997-98) dated September 30, 1997 (the “Policy”), to 62 seasonal customers who had expressed an interest in receiving electrical service; and

 

WHEREAS subsequent to the Applicant’s letter of May 17, 2000, the Applicant received written acceptance of the CIAC amount of $5,060.46 from 54 of the 62 seasonal customers listed in the Applicant’s letter of May 17, 2000, as well as from 7 additional seasonal customers not included in the calculation of the original CIAC amount; and

 

WHEREAS the Applicant revised the calculation of the CIAC amount on the basis of serving the 61 seasonal customers who had responded to the Applicant’s letter dated May 17, 2000 and, on June 30, 2000, applied to the Board for approval of the revised CIAC amount of  Five thousand three hundred seventy-two dollars and forty-two cents ($5,372.42), including HST, as calculated under the Policy (the “Revised CIAC”); and

 

WHEREAS the Customers were not provided with written notice of the Revised CIAC prior to submission of the application to the Board; and

 

WHEREAS the Board, by Order No. P.U. 13 (2000-2001), approved the Revised CIAC; and

 

WHEREAS certain of the Customers who were not provided with written notice of the increase in the amount of the CIAC have advised that they are not willing to pay the higher amount, and this would result in a further recalculation of the CIAC amount; and

 

WHEREAS the Applicant proposes to deviate from the Policy by charging the Customers the CIAC amount initially quoted to the Customers rather than the Revised CIAC approved by the Board in Order No. P.U. 13 (2000-2001), which will create a shortfall in cost recovery of $311.96 per customer, and by suspending the entitlement of the Customers to refunds as calculated under Clause 6 of the Policy until that shortfall is recovered; and

 

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

 

WHEREAS Clause 12(b) of the Policy requires that all deviations from the Policy in the calculations 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 suspension of refunds 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

 

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.

 

IT IS THEREFORE ORDERED THAT:

 

  1. Pursuant to Section 76 of the Act, Order No. P.U. 13 (2000-2001) is hereby rescinded, and

 

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

(a)    the CIAC in the amount of  Five thousand sixty dollars and forty-six cents ($5,060.46), including HST; and

(b)   the suspension of the payment of refunds to the Customers until the shortfall of $311.96 per customer is recovered.

 

 

DATED at St. John’s, Newfoundland this 29th day of August, 2000.   

 

 

 

 

                                                                                                ________________________________

                                                                                                David A. Vardy,

                                                                                                Chair & Chief Executive Officer.

 

                                                                                                                                                           

                                                                                                ______________________________

                                                                                                Darlene Whalen, P.Eng.,

                                                                                                Vice-Chairperson.

 

 

                                                                                                                                                           

                                                                                                Raymond A. Pollett,

                                                                                                Commissioner.

 

 

__________________________

Barbara Thistle,

Assistant Board Secretary.

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