P.U. 11
(2001-2002)
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
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 forty-five Seasonal Customers whose seasonal residences
are located in an area known as Ryan’s Pond near Brigus Junction; and
WHEREAS the
Customers have requested that the Applicant provide their seasonal residences
at Ryan’s Pond with single-phase electrical service which, in order to so
provide, requires the Applicant to utilize an existing 12, 320 meter line
extension constructed to serve seasonal customers at Second Junction Pond,
Jack’s Pond and Whelan’s Pond (the “Existing Extension”) and construct a further 7,584 meter single-phase extension
(the “New Extension”); and
WHEREAS the
New Extension will not be jointly used by the Applicant and Aliant Telecom
Inc.; and
WHEREAS a CIAC of the New Extension has been
calculated in accordance with Clause 5(b) and Clause 5(c) of the CIAC Policy:
Distribution Line Extensions To Residential and Seasonal Residential Customers
approved by Order No. P.U. 7 (1997-98) dated the 30th day of
September 1997 (the “Policy”), and the CIAC thus calculated is Four thousand
seven hundred seventy-seven dollars and twenty-five cents ($4,777.25),
including HST; and
WHEREAS a CIAC of the Existing Extension has been
calculated in accordance with Clause 5(b) and Clause 5(c) of the Policy, based
on the number of customers currently served by the Existing Extension, and the
CIAC thus calculated is Five thousand four hundred ninety-eight dollars and
fifty-two cents ($5,498.52), including HST; and
WHEREAS the New Extension represents an addition to
the Existing Extension and includes a continuous section of more than 300
meters of line with no customer premises located thereon which, in accordance
with Clause 5(e) of the Policy, is deemed a separate line extension; and
WHEREAS the Applicant proposes to deviate from the
literal wording of Clause 5 (e) by including the New Extension and the Existing
Extension in a single CIAC calculation because in the present circumstances the
inclusion of the Customers who would be treated separately on a literal
interpretation of Clause 5 (e) results in the reduction of the average CIAC for
those customers served by the Existing Extension and the intent of the Policy
would not be served by separating them; and
WHEREAS the average CIAC amount for all customers
served by the Existing Extension and the New Extension is $5,203.46; and
WHEREAS by Order No. P.U. 28 (2000-2001) the Board
approved a CIAC amount of $5,060.46 for customers served by the Existing
Extension and the suspension of refunds to these customers until a shortfall in
the CIAC is recovered; and
WHEREAS the Applicant proposes to charge the Customer
$5,060.46 and to suspend the entitlement to Customers to refunds as calculated
under Clause 6 of the Policy until the shortfall of $143.00 is recovered; and
WHEREAS the
construction cost of the New Extension is $218,016 and Clause 12(a) of the Policy
requires all Line extensions involving CIACs where the construction costs are
estimated to be greater than $25,000 must be submitted to the Board for
approval; and
WHEREAS Clause 12(b) of the Policy requires that all
deviations from the Policy in the calculation 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 CIAC and suspension of refunds is
necessary to ensure that the Applicant’s investment in the New Extension is
compensatory over the useful life of the New Extension and will not be to the
detriment of the Applicant’s other customers; and
WHEREAS the proposed expenditures on the New 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; and
WHEREAS the Board is satisfied that the deviation from the
requirements of Clause 5 (e) of the Policy is reasonable in the circumstances.
IT IS THEREFORE ORDERED THAT:
Pursuant to Section 41(5) of the Act, the Board approves:
(1) the CIAC in the amount of Five thousand sixty dollars and forty-six cents ($5,060.46), including HST, for the Customers, as calculated under the Policy; and
(2) the suspension of the payment of refunds to the Customers until the shortfall of $143.00 per customer is recovered.
DATED at St. John’s, Newfoundland this 26th day of July 2001.
Robert Noseworthy,
Chair & Chief Executive Officer.
Darlene Whalen, P.Eng.,
Vice-Chairperson
Raymond
A. Pollett,
Commissioner.
G.
Fred Saunders,
Commissioner.
G. Cheryl Blundon,
Board Secretary.