P.U. 12 (2001-2002)
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 to proceed
with the
construction and purchase of certain
improvements to
its property pursuant to section
41(3) 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 pursuant
to P.U. 24 (2000-2001) dated October 6, 2000 the Board approved the capital
budget of $39,109,000 of the Applicant for the fiscal year 2001 (the “Capital
Budget Order”); and
WHEREAS in the Capital Budget Order the
Board approved expenditures of $900,000
for the replacement of the surge tank at the Applicant’s Cape Broyle
Hydroelectric Plant (the “Plant”); and
WHEREAS the wood stave penstock supplying
water to the Plant is 48 years old and is in a deteriorated condition and was
scheduled to be replaced in 2003; and
WHEREAS the Applicant determined that it
can eliminate the need for a surge tank at the Plant by replacing the wood
stave penstock with a steel penstock designed to withstand the additional
pressure a surge tank is intended to accommodate; and
WHEREAS the
Applicant proposes to replace the wood stave penstock with a steel penstock at
an estimated cost of $1,100,000, thereby eliminating the need for the surge
tank, and
WHEREAS in the
Capital Budget Order the Board approved
expenditures of $102,000 to upgrade a section of Bay L’Argent (BLA-01)
distribution feeder to improve service reliability, and
WHEREAS the
Applicant completed a review of electric service reliability on the Burin
Peninsula and determined that additional expenditures are required to improve
the reliability of service to the area, and the Applicant proposes to undertake
the following initiatives:
(a)
Construct a new substation
at Lawn at an estimated cost of $690,000 thus allowing
the Applicant to retire approximately 13 kilometres of the Laurentian (LAU-02)
distribution feeder between St. Lawrence and Lawn, and to avoid the cost of
rebuilding that portion of the feeder to a higher design standard.
(b)
Rebuild sections of the Laurentian (LAU-02)
distribution feeder totalling 38 kilometres between Lawn and Point May at an
estimated cost of $687,000.
(c)
Rebuild additional sections of the Bay L’Argent (BLA-01)
distribution feeder between Bay L’Argent and Rushoon and between Bay L’Argent
and Harbour Mille at an estimated cost of $943,000.
(d)
Upgrade transmission lines 301L, 302L and 305L serving
the Salt Pond, Grand Bank and Laurentian substations at an estimated cost of
$250,000, and
WHEREAS the
Applicant has conducted a priority review of its approved 2001 capital
expenditures and determined that it is appropriate to defer certain approved
2001 capital expenditures totalling $953,000; and
WHEREAS the
proposed changes to the 2001 Capital Budget will result in additional capital
expenditures of $1,817,000; and
WHEREAS the
Applicant states that proposed expenditures are necessary to provide service
and facilities which are reasonably safe and adequate and just and reasonable
as required pursuant to s.37 of the Act; and
WHEREAS the
Applicant has provided additional information as requested by the Board.
IT IS THEREFORE ORDERED THAT:
(1) Pursuant
to Section 41 (3) of the Act, the Board approves:
(a) the
construction projects and capital purchases in excess of $50,000, as set forth
in Schedule A;
(b) the
revised 2001 capital budget of $40,926,000, as set forth in Schedule B, Page 1
of 2; and
(c) the
deferrals or cancellations of projects as set forth in Schedule B, Page 2 of 2.
DATED at St.
John's, Newfoundland, this 26th day of July 2001.
Darlene
Whalen, P.Eng.,
Vice-Chairperson.
Raymond
A. Pollett,
Commissioner.
G.
Fred Saunders,
Commissioner.
G.
Cheryl Blundon,
Board
Secretary.