P.U.  21 (2000-2001)

 

 

 

IN THE MATTER OF the Public

Utilities Act, R.S.N. 1990,

Chapter P-47 (“the Act”)

 

                      AND

 

IN THE MATTER OF an Application by

Newfoundland and Labrador Hydro

(“the Applicant”) pursuant to section 38 of

the Act, for consent to decommission its

diesel generating station situate at LaPoile.

 

 

 

 

 

WHEREAS the Applicant is a statutory body corporate existing pursuant to the Hydro Corporation Act, c. H-16 of the Revised Statutes of Newfoundland, 1990, as amended, and is a public utility within the meaning of the Act; and

 

WHEREAS the Applicant owns a diesel generating station in the community of  La Poile which contains two 136 kW diesel units for a total installed capacity of 272 kW; and

 

WHEREAS in 1998 the Applicant determined that the diesel generating station had reached the end of its useful life, and therefore faced the choice of replacing it with another similar diesel generating station or interconnecting the community; and

 

WHEREAS in October of 1998 the Applicant conducted a study of the relative costs of remaining with a diesel generation versus the interconnection option, which study was filed with the Board in connection with the Applicant’s application for approval of its 1999 capital budget; and

 

WHEREAS the Applicant advises that the study determined that the interconnection option was far more cost effective than the alternative of continued isolated diesel generation; and

 

WHEREAS on March 18, 1999 the Applicant met with representatives of the Local Service District of   La Poile and discussed the interconnection, scheduled to take place later that year, and the subsequent decommissioning of the La Poile diesel plant, tentatively planned for the summer of 2000; and

 

WHEREAS the Applicant explained that it would retain the diesel generating station for a period of one winter season so that it would be available in the event of an extended interruption which is consistent with the Applicant’s usual practice in these circumstances; and

 

WHEREAS the Applicant advises that the community representatives in attendance raised no concerns regarding the intended decommissioning of the diesel plant and the only questions that were raised pertained to the rate change that was to occur upon interconnection; and

 

WHEREAS on December 1, 1999 the Applicant interconnected La Poile with the distribution system at Grand Bruit, thereby effecting an interconnection with the island Interconnected Grid; and

 

WHEREAS the Applicant advises that since the interconnection, the only outage that affected service to La Poile occurred in July of 2000 resulting from a lightning strike at the Bottom Brook Terminal Station near Stephenville; and

 

WHEREAS the Applicant advises the other communities served by this section of the interconnected grid experienced these same outages, and that the La Poile diesel plant has not been operated since the interconnection date; and

 

WHEREAS the Applicant advises it is expected that, upon decommissioning, it will be able to salvage some of the components from the La Poile diesel plant for deployment in its other isolated diesel systems; and

 

WHEREAS Section 38 of the Act requires the written consent of the Board to abandon part of a line, or works, after they have been operated, or discontinue a service, which consent shall only be given after notice is provided to an incorporated municipal body interested; and

 

WHEREAS upon receipt of the Application dated July 21st, 2000, and reading the affidavit of Thomas Vatcher, sworn to at St. John’s, in the Province of Newfoundland, on the 21st day of July, 2000, and filed therein; and

 

WHEREAS on July 21st, 2000 the Board was advised that the Applicant provided a copy of this application to the Local Service District of La Poile concurrent with this filing; and

 

WHEREAS on July 28th, 2000 the Board wrote to the Local Service District of La Poile and received no objection by the deadline date of August 24, 2000; and

 

WHEREAS on September 8th , 2000 the Local Service District of La Poile advised the Board, by telephone, that it had no objection to the decommissioning of the diesel generating plant at La Poile.

 

IT IS THEREFORE ORDERED THAT:

 

Pursuant to Section 38 of the Act, the Board consents to and approves the abandonment and decommissioning of the La Poile diesel generating station.

                                                                                               

 

 

DATED at St. John’s, Newfoundland this 8th day of September 2000.   

 

 

 

 

                                                                                                ________________________________

                                                                                                David A. Vardy,

                                                                                                Chair & Chief Executive Officer.

 

 

 

                                                                                                ___________________________

                                                                                                Darlene Whalen, P.Eng.,

                                                                                                Vice-Chairperson.

 

 

 

                                                                                                ______________________________

                                                                                                G. F. Saunders,

                                                                                                Commissioner.

                       

                       

 

_____________________________

G. Cheryl Blundon,

Director of Corporate Services and

Board Secretary.

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