P.U. 3  (2000-2001)

 

 

 

IN THE MATTER OF THE PUBLIC

UTILITIES ACT, R.S.N. 1990,

CHAPTER P-47 (“THE ACT”)

 

                      AND

 

IN THE MATTER OF THE APPLICATION BY

NEWFOUNDLAND POWER INC. (“THE APPLICANT”)

FOR APPROVAL OF A CONTRIBUTION IN AID OF

CONSTRUCTION FOR A LINE EXTENSION TO SERVE

THE TOWN OF STEPHENVILLE (“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 is a municipality that intends to operate a water supply system consisting of five wells and one chlorination facility located off the Hansen Highway near Stephenville; and

WHEREAS the Customer has requested that the Applicant provide its facility with three-phase electrical service which, in order to so provide, requires the upgrade of 687 metres of single-phase (the “Upgrade”) and the construction of a three-phase extension of 3,676 metres (the “Extension”); and

WHEREAS neither the Upgrade nor the Extension will be jointly used by the Applicant and NewTel Communications; and

WHEREAS the Customer has requested that the requested service be metered together and in accordance with Regulation 7(b) of the Applicant’s Rates, Rules and Regulations approved from time to time by the Board, the service can be metered together provided the Customer supplies and maintains all distribution facilities beyond the point of supply; and

WHEREAS the Customer has requested that the Applicant own and maintain all distribution facilities beyond the point of supply and in order to meet the requirements of Regulation 7(b), the Customer has agreed to pay in advance a contribution in aid of construction (CIAC) representing the full cost of constructing the Extension and an amount representing the future maintenance cost of  the Extension; and

WHEREAS a CIAC has been calculated in accordance with Clause 5(b) of the distribution line CIAC Policy for general service customers of the Applicant approved by Order No. P.U. 7 (1997-98) dated the 30th day of September 1997, as amended from time to time, (the “Policy”) with the following exceptions:

(a)        No Company Investment has been applied against the construction cost of the Extension;

(b)        An operating and maintenance charge has been applied to the cost of transformer and service drops; and

(c)        The Extension is considered to be customer-identified plant and will not be considered as part of the rate base of the Company; and

(d)        No other customer will be served by the Extension and no refunds will be provided for the CIAC of the Extension pursuant to Clause 6(a) of the Policy.

WHEREAS the CIAC thus calculated is One hundred eighty-four thousand, one hundred seventy five dollars and ninety-five cents ($184,175.95), including HST; and

 

WHEREAS the construction cost of the Upgrade and the Extension totals $197,328.00 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 that $25,000 must be submitted to the Board for approval; and

WHEREAS the proposed expenditures on the Upgrade and the Extension are necessary for 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 comply with Regulation 7(b) of the Applicant’s Rates, Rules and Regulations and to ensure that the Upgrade and the Extension are compensatory over the their useful life and will not be to the detriment of the Applicant’s other customers; and

WHEREAS the CIAC as calculated involves deviations from the procedure contained in the Policy for calculating the CIAC of the Extension and Clause 11(b) of the Policy states that any deviations from the Policy in the calculation of CIACs for line extension must be submitted to the Board for approval

 

IT IS THEREFORE ORDERED THAT:

Pursuant to Section 41(5) of the Act, the Board approves the contribution in aid of construction in the amount of One hundred eighty-four thousand, one hundred seventy-five dollars and ninety-five cents ($184,175.50) including HST, as calculated under the Policy.

 

                                                                                               

DATED at St. John’s, Newfoundland this 1st day of May 2000.

 

 

 

 

                                                                                                ________________________________

                                                                                                D.A. Vardy,

                                                                                                Chair & Chief Executive Officer

 

 

                                                                                                ______________________________

                                                                                    Darlene Whalen, M.A.Sc., P.Eng.,                                                                                                                    Commissioner.

 

 

 

_____________________________

G. Cheryl Blundon,

Board Secretary.

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