P.U. 5 (2001-2002)

 

 

 

IN THE MATTER OF THE PUBLIC

UTILITIES ACT, 1990, CHAPTER P-47

(“THE ACT”)

 

                              AND

 

IN THE MATTER OF THE APPLICATION

BY NEWFOUNDLAND POWER INC.

(“THE APPLICANT”) for approval of rate

stabilization and municipal tax adjustments to

be applied to the rates of the Applicant for

the period July 1, 2001 to June 30, 2002

pursuant to section 71 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 Newfoundland and Labrador Hydro Corporation (“Hydro”) maintains a Retail Rate Stabilization Plan (“RSP”), the operational guidelines of which are included in the Board of Commissioners of Public Utilities’ (“the Board”) Report to the Minister Responsible for Energy dated August 6, 1985; and

WHEREAS by Order No. P.U. 34 (1985), the Board approved the establishment of a Rate Stabilization Account (“RSA”) by the Applicant, and the Board also approved the inclusion of a Rate Stabilization Adjustment in the rates charged by the Applicant; and

 

WHEREAS the rate stabilization clause included in the Applicant’s “Schedule of Rates, Rules & Regulations” provides for the calculation of the balance in the RSA and the calculation of the Rate Stabilization Adjustment; and the Rate Stabilization Adjustment is to be recalculated on July 1st of each year to reflect the accumulated balance in the Applicant’s RSA as of December 31st of the previous year, and any change in the mill rate charged to the Applicant by Hydro as a result of the operation of its RSP; and

 

WHEREAS the Rate Stabilization Adjustment included in the Applicant’s rates for the period July 1, 2000 to June 30, 2001 is 0.180 cents/kWh; and

 

WHEREAS by Order No. P.U. 17 (1987), the Board ordered that municipal taxes no longer be included as an expense in the determination of revenue requirement but that they be collected through a Municipal Tax Adjustment (MTA) factor included in the rates of the Applicant; and

 

WHEREAS the municipal tax clause included in the Applicant’s “Schedule of Rates, Rules & Regulations” provides for the calculation of the MTA factor and the MTA factor is to be recalculated on July 1st of each year to reflect taxes charged to the Applicant by municipalities; and

 

WHEREAS the MTA factor included in the Applicant’s rates for the period July 1, 2000 to June 30, 2001 is 1.02563; and

 

WHEREAS the Applicant has applied for approval of rate stabilization and municipal tax adjustments to be applied to the rates of the Applicant for the period July 1, 2001 to June 30, 2002, pursuant to section 71 of the Act, which application was received by hand at the Board on May 25th, 2001, together with an accompanying affidavit and schedules; and

 

WHEREAS Schedule A presents Hydro’s calculation of the RSP adjustment to the mill rate to be paid by the Applicant to Hydro for the period July 1, 2001 to June 30, 2002; and

 

WHEREAS Schedule B presents the calculation of the Rate Stabilization Adjustment of 0.172 cents/kWh proposed by the Application to be used by the Applicant in billing customers for the period July 1, 2001 to June 30, 2002; and

 

WHEREAS Schedule C presents the calculation of the MTA factor of 1.02507 proposed by the Application to be used by the Applicant in billing customers for the period July 1, 2001 to June 30, 2002; and

 

WHEREAS, in accordance with the rate stabilization clause and the municipal tax clause, the Rate Stabilization Adjustment and the MTA factor for the period July 1, 2001 to June 30, 2002 is to apply to all bills based on meter readings taken on and after July 1, 2001.

 

 

IT IS THEREFORE ORDERED THAT:

 

(1)        The Board approves the Rate Stabilization Adjustment factor of 0.172 cents/kWh and the MTA factor of 1.02507 to be applied to all bills based on meter readings for the period July 1, 2001 to June 30, 2002.

 

(2)        The Applicant place an insert in the next billing explaining the reasons for the adjustment and its magnitude.   

 

DATED at St. John's, Newfoundland, this 13th day of June, 2001.

 

 

 

 

                                                                                                                                                           

Robert Noseworthy,

Chair and Chief Executive Officer.

 

 

 

                                                                 

Darlene Whalen, P.Eng.,

Vice-Chairperson.

 

 

 

 

 

 

                                                                                                

G. Cheryl Blundon,

Director of Corporate Services

  and Board Secretary.

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