P.U.
26 (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
for a line extension to serve the Town of Old Perlican
(“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 subject to the provisions of the Electrical Power Control Act, 1994; and
WHEREAS the
Customer will operate a pumping station located near Old Perlican; 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 103 metres of two-phase line and 1,038 metres
of single-phase line to three-phase standard and the construction of a further
60 metres of three-phase line (the “Extension”); and
WHEREAS the Extension will not be jointly used by the
Applicant and Aliant Telecom Inc.; and
WHEREAS the maximum demand estimated for the Customer’s
facility is less than 75 kW and in accordance with Regulation 5(b) of the
Applicant’s Rates, Rules and Regulations approved by the Board from time to
time, a contribution in aid of construction (“CIAC”) is required to cover the
cost of transformers, equipment and any line extension of upgrade required to
provide three-phase service and the CIAC thus calculated is reduced by the
value of any single-phase plant supported by the projected revenue from the
Customer; and
WHEREAS a
CIAC of the Extension has been calculated in accordance with Clause 5(b) of the
CIAC Policy: Distribution Line
Extensions and Upgrades to General Service Customers approved by Order No. P.U.
7 (1997-98) dated the 30th day of September, 1997 (the “Policy”),
which calculation assumes the Extension will supply service to a pumping
station with an estimated peak demand of
66.7 kW and the CIAC thus calculated is Eighteen thousand seven hundred
and thirty-one dollars and sixty-six cents ($18,731.66), including HST; and
WHEREAS the construction cost of the Extension is $36,236.00
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
than $25,000 must be submitted to the Board for approval; and
WHEREAS the proposed expenditures on the Extension are
necessary for the 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 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.
IT IS THEREFORE ORDERED THAT:
Pursuant to Section 41(5) of the Act, the Board approves the CIAC of
Eighteen thousand seven hundred thirty-one dollars and sixty-six cents
($18,731.66), including HST, as calculated under the Policy.
DATED at St. John’s, Newfoundland, this 21st day of November, 2001.
________________________________
Robert Noseworthy,
Chair & Chief Executive Officer.
______________________________
Darlene
Whalen, P.Eng.,
Vice-Chairperson.
__________________________
G. Cheryl Blundon,
Director of Corporate Services
and
Board Secretary.