P. U.  6 (2001-2002)

 

 

 

 

IN THE MATTER OF the Public Utilities

Act (the “Act”); and

 

IN THE MATTER OF an application by

Newfoundland Power Inc. (“Newfoundland

Power”) for an Order pursuant to Sections 41

and 53 of the Act, and all other enabling

powers:

 

a)                  for approval of the purchase by

Newfoundland Power of certain

additions to its property and assets;

and

 

b)                  for approval of an agreement

concerning the terms and conditions

upon which Aliant Telecom Inc.

(“Aliant”) shall jointly use certain

facilities of Newfoundland Power.

 

 

 

BEFORE:       Darlene Whalen, P. Eng.

Vice Chair  (Presiding Chair)

 

William Crosbie, P. Eng.

Commissioner

 

Gerard Martin, Q. C.

Commissioner

 

 

DATE:            July 06, 2001

 

 

 


Background

 

On March 1, 2001 Newfoundland Power signed an agreement with Aliant to purchase all of the support structures (“poles”) owned by Aliant on the island of Newfoundland, including those outside its service territory, on the terms outlined in the Support Structures Purchase Agreement  (“Purchase Agreement”) filed with the application.   Subsequent to the execution of this agreement Newfoundland Power permanently assigned its rights to purchase poles outside its service territory to 11003 Newfoundland Inc., essentially modifying the Purchase Agreement to include only those poles within Newfoundland Power’s service territory.   The total number of poles being purchased by Newfoundland Power is 101,875, consisting of  69,848 joint use poles and 32,027 non-joint use poles.

 

In addition to the Purchase Agreement Newfoundland Power and Aliant have entered into a Facilities Partnership Agreement (“Facilities Agreement”) whereby Aliant will continue to have access to the poles.  Newfoundland Power, as owner of all poles, will provide Aliant with services related to its pole requirements, including the maintenance and replacement of the poles acquired from Aliant and the design, construction and maintenance of additional poles to meet Aliant’s ongoing requirements.  Aliant will compensate Newfoundland Power for these services as outlined in the Facilities Agreement, paying, in 2001, an annual rental fee of $32 per pole for all joint use and non-joint use poles and also making a capital contribution for new non-joint use pole construction. 

 

Newfoundland Power will also receive revenue from cable television service providers (“CATV Operators”) in respect of their attachments on the poles to be purchased.  Under the Facilities Agreement CATV Operators will pay Newfoundland Power $12.84 annually per attachment which represents a blend of the rate that CATV Operators currently pay Aliant and Newfoundland Power.

 


The Facilities Agreement provides for an initial term of 10 years and for renewal terms as mutually agreed.  Upon termination or non-renewal of the Facilities Agreement, Aliant is obligated to purchase all of the non-joint use poles on which it has attachments and 40% of the joint use poles at a price representing the net book value (original investment less accumulated depreciation) of those assets. 

 

The aggregate purchase price to be paid by Newfoundland Power to Aliant for the support structures in its service territory is $45,858,000, to be paid over a period of five years as provided for in the Purchase Agreement.  This purchase price represents the net book value of the poles as of December 31, 2000.

 

On May 8, 2001 the Board received an application from Newfoundland Power for approval to acquire all of the utility poles and related assets of Aliant located in Newfoundland Power’s service territory.   In its application Newfoundland Power requested an Order of the Board approving:

 

(i)         the Purchase Agreement with Aliant comprising of a total aggregate purchase price of $45,858,000, with payment of  $22,929,000 in 2001 and the remainder to be paid in annual instalments to January 1, 2005;

 

(ii)        the Facilities Agreement, effective as of January 1, 2001, governing Aliant’s use of all support structures in Newfoundland Power’s service territory, including the payment of remuneration by Aliant to Newfoundland Power in connection with Aliant’s use of support structures and payment of contributions with respect to the construction of certain support structures;

 

(iii)       the supplementary capital expenditures for 2001 in the amount of $26,245,000, consisting of $22,929,000 to be paid to Aliant in 2001 and $3,316,000 for distribution plant additions in 2001; and

 

(iv)       other such matters as may appear just and reasonable upon the hearing of this application.

 

The Hearing

 

The dates of June 7th and 8th were set aside to hear the matter and notice of the public hearing was published throughout the province.  Intervenors submissions were received from Glovertown Cable on May 23, 2001 and from Newfoundland and Labrador Hydro (“Hydro”) on May 25, 2001.  

 

As part of their intervenor’s submission Hydro requested a delay in the hearing dates.  On May 29, 2001 Newfoundland Power filed a reply to Hydro’s intervenor’s submission and requested that the Board order that the matters raised by Hydro in their intervenor’s submission not be considered at the public hearing or alternatively that the Board limit Hydro’s submission to matters raised in the application and that Hydro be asked to re-file their intervenor’s submission to comply with the regulations of the Board.

 

A preliminary hearing was held on May 30, 2001 to deal with both requests at which time the Board ordered, after hearing representations from both parties, that the hearing would proceed on June 7th and 8th as planned.  As well the Board did not grant Newfoundland Power’s request that Hydro’s intervention not be considered at the public hearing or that it be limited in scope.  At the Board’s request Hydro re-filed a more concise scope of its intention for cross examination before the commencement of the hearing.

 

In addition to the direct evidence and exhibits pre-filed by Newfoundland Power, a number of information requests were issued to Newfoundland Power by the Board and Hydro, and to Hydro by the Board.


 

The hearing opened on June 7th with the following parties appearing:

 

On behalf of Newfoundland Power:

 

Mr. Ian Kelly, Q.C.

Mr. Peter Alteen, LLB

 

On behalf of Hydro:

 

Mr. Wayne Chamberlain, LLB

Mr. Geoff Young, LLB

 

On behalf of Glovertown Cable:

 

Mr. Terry Burry

 

 

The Board was assisted in the proceedings by its legal counsel, Mr. Randy Pelletier, LLB.

 

Evidence for Newfoundland Power was given by Mr. Philip Hughes, President and Chief Executive Officer, Mr. Barry Perry, Vice President Finance and Chief Financial Officer, and Mr. Earl Ludlow, Vice President, Operations and Engineering.  Mr. John T. Browne, of  JTBrowne Consulting, appeared as an expert witness for Newfoundland Power.

 

Mr. Terry Burry of Glovertown Cable also made an oral presentation to the Board and participated by way of cross-examination of Newfoundland Power’s witnesses.  Hydro participated by way of cross-examination of Newfoundland Power’s witnesses and final argument.

 

At the request of the Board, the Board’s financial consultants, Grant Thornton, also reviewed the application and supporting documentation.  A copy of their report was filed by the Board as part of the proceeding.

 


Summary of Evidence and Submissions

 

Newfoundland Power presented the proposed arrangement as one that will result in more efficient and cost effective operations that will be administratively simpler than the present arrangement.  It argued that the evidence presented demonstrates that the arrangement is beneficial from a financial perspective for the utility and will result in positive benefits for customers.  The cash flow analysis shows a net present value of the after-tax cash flows associated with the purchase of Aliant’s poles and the provision of support structure services to Aliant over the 10-year analysis period of $1,623,503 (Exhibit 10). 

 

On the issue of the non-joint use poles it was Newfoundland Power’s position that these poles should be included in the rate base since it is more beneficial for the customers.  Even though the value of the poles is relatively small in terms of the percentage of rate base, the value of the efficiencies to be gained from including them in the rate base is significant.  Excluding the non-joint use poles from the rate base would mean tracking the poles and the associated costs separately, reducing the efficiency of the arrangement and the benefits to the customers.  In addition, the costs of the non-joint use poles will be recovered from Aliant through rental charges and the capital contributions it will pay.   As well, revenue from the non-joint use poles is greater than the cost, which reduces costs to the customers.

 

Hydro did not present any evidence in the hearing but did file information requests and participate in cross-examination and final argument during the hearing.  In its written intervention and at the opening of the hearing Hydro expressed concerns about the Board being asked to approve the Purchase Agreement as presented since it deals with poles in Hydro’s service territory.  Counsel for Newfoundland Power confirmed that the poles located in Hydro’s service territory did not form part of this application and that Newfoundland Power does not require approval of the agreement but only approval of the $45.9 million expenditure over the five-year period as set out in the agreement.   Hydro accepted this position. 

 

Hydro’s primary concern at the hearing was Newfoundland Power’s position that the non-joint use poles which are not used for electrical service be included in the rate base.   They argued that there was no compelling reason for the Board to allow non-electrical assets into the rate base.  It was Hydro’s position that the legislation requires that the Board apply tests consistent with generally accepted sound public utility practice and that the non-joint use poles do not meet the traditional test of being used and useful.

 

In his oral presentation Mr. Terry Burry of Glovertown Cable described the impact, in his view, that approval of the application would have on his company.  His position was that approval of this application would mean that he would have to deal with a single monopoly and that there would be no benefit to his company or his customers.  He stated that he also fears that pole attachment rates will rise.  He also expressed concern about the current regulatory regime that he has to operate under with respect to pole attachments. 

 

The report of the Board’s financial consultants, Grant Thornton, was also entered into evidence.  This report confirmed the reasonableness and appropriateness of the assumptions used in the financial and economic analysis and verified that the assumptions were appropriately incorporated into the schedules and calculations.  Overall it was Grant Thornton’s conclusion that the analyses submitted in support of the application appeared reasonable and appropriate.

 

Issues for Decision

 

This application has been presented to the Board as essentially an amendment to Newfoundland Power’s approved capital budget for 2001.  The Board has approved previous capital budgets after public hearings and after hearing considerable evidence about the proposed capital expenditures and their necessity for reasons of safety and of reliability and quality of service.  While this application is being considered under section 41 of the Public Utilities Act, it is obviously not a typical capital budget amendment application and cannot be considered in the same manner.  The proposed 2001 expenditure of $22,929,000 represents an increase of over 50% in the approved capital budget for 2001, with the remaining $22,929,000 to be spent over the next four years as provided for in the Purchase Agreement. 

 

After hearing the evidence and the representations from the intervenors, there are several issues of concern for the Board.  The key questions for consideration and decision are:

 

1.                  Should the 32,027 non-joint use poles be included in the rate base?

2.                  If the 32,027 non-joint use poles are excluded from the rate base, what will be the impact on the remainder of the transaction and can the Board approve the expenditure for the joint use poles?

 

In dealing with these questions, and other issues arising from the application, the Board has decided to address the question of inclusion of the non-joint use poles in the rate base first, since the decision on this issue may affect a determination on the application itself. 

 

The Board’s findings and reasons for decision on these questions are outlined in the sections following.  

 

1.  Should the 32,027 non-joint use poles be included in the rate base?

 

In dealing with the question of whether the 32,027 non-joint use poles should be included in the rate base the Board has to look to its governing legislation.  The Public Utilities Act provides direction to the Board on how it should fix and determine the rate base of a utility.    Section 118 of the Public Utilities Act directs the Board to give a liberal interpretation to the Act.  The Board is also guided by section 4 of the Electrical Power Control Act (the “EPCA"), which requires the Board to apply tests consistent with “generally accepted sound public utility practice”. 

 

Section 64 of the Public Utilities Act deals with valuation of assets and gives the Board the authority to “inquire into and determine the extent, condition and value of the whole or a portion of the property and assets of a public utility used and useful in providing or supplying a particular service to or for the public” (emphasis added).   “Service” is defined in the Public Utilities Act as “the use and accommodation given to consumers or patrons, and a product or commodity provided by a public utility, and also includes, unless the context otherwise requires, the plant, equipment, apparatus, appliances, property and facilities employed by or in connection with a public utility in performing a service or in providing a product or commodity and devoted to the purpose in which the public utility is engaged…”.   The particular service referred to in section 64 then is taken to mean the electrical power supplied to consumers.

 

Section 78 of the Public Utilities Act provides for the Board to fix and determine the rate base for each kind of service provided or supplied to the public by a public utility and to revise the base.  In particular section 78(2)(c) states that the Board may, in addition to the value of the property and assets determined under section 64, include costs in whole or in part of land or other property and assets acquired or held in reasonable anticipation of future requirements (emphasis added).   This is taken to mean that, even if an asset is not currently used, there must be some anticipation that the asset will be used in the future for the provision of electrical service.  In assessing the “used and useful” status of an asset, the Board also accepts the principle that there must be some imminence and certainty of that use before an asset may be included in the rate base.  This principle was described in case law presented during the hearing.  Section 78(h) also provides for the Board to include “other fair and reasonable expenses which the board thinks appropriate and basic to the public utility’s operations” (emphasis added).    Again, the Board takes this as direction that the rate base is to include only those assets and expenses that are related to the provision of electrical service.

           

The question then to be answered first is whether the 32,027 non-joint use poles are actually “used and useful”, which is the generally accepted test for deciding whether an asset should be included in the rate base.   In this case, under the used and useful standard, customers of Newfoundland Power should only pay for the cost of those assets that are used and required to be used to provide them with electrical service. 

 


It is Newfoundland Power’s position that the non-joint use poles have been included in the proposed arrangement for reasons of administrative and operational efficiency.  There was no evidence that the poles are being purchased for reliability, safety or quality of service purposes.  In response to PUB-13 Newfoundland Power confirmed that 76%, or 24,000, of the non-joint use poles to be purchased from Aliant are 30 ft. or less and are generally located such that they will unlikely be used by Newfoundland Power in the provision of electricity.  Of the remaining 8,000 poles it is not clear from the evidence that these poles will ever be used for the provision of electricity, even if they meet the technical requirements for such, because of location, routing or safety reasons.

 

It is clear to the Board that, applying generally accepted sound public utility practice as required, the concept of  “used and useful” as provided for in the Public Utilities Act does not include the non-joint use poles.  They are not currently used for the provision of electricity and there is no reasonable anticipation of the non-joint use poles being used in the near future for the provision of electrical service. 

 

Newfoundland Power argued that this transaction should be approved as presented since it would be in accordance with the intent of section 3 of the EPCA, which stipulates the power policy of the province.  Section 3(b) of the EPCA states, in part:

“all sources and facilities for the production, transmission and distribution of power in the province should be managed and operated in a manner

(i)                  that would result in the most efficient production, transmission and distribution of power,

(ii)                that would result in consumers in the province having equitable access to an adequate supply of power,

(iii)               that would result in power being delivered to consumers in the province at the lowest possible cost consistent with reliable service,”

 

It is Newfoundland Power’s position that the proposed transaction will result in power being delivered to consumers in the most efficient manner and at the lowest possible cost consistent with reliable service and that the most efficient joint use arrangement is one that includes both the joint use poles and the non-joint use poles in an integrated distribution network.   The Board interprets this section of the EPCA as dealing only with the sources and facilities for the production, transmission and distribution of power in the province.  It is clear that the joint use of poles for reasonable compensation as provided for in section 53 of the Public Utilities Act is in accordance with this section of the EPCA in that it reduces overall costs to consumers.  The Board does not agree, however, that the non-joint use poles can be included in “sources and facilities” for the distribution of power. 

 

Newfoundland Power also argued that, since the mix of joint and non-joint use poles support structures is dynamic, the cost of tracking and maintaining the necessary information is extremely high and that this should be a consideration for the Board when deciding whether to include the non-joint use poles in the rate base.  In response to NLH-13 Newfoundland Power states:

“While at any point in time some support structures will only be used by one of the parties, this situation will be dynamic as each party’s requirements change.  The detailed tracking required to determine if a particular pole is jointly used at a particular point in time for rate base certification will be as inefficient and expensive as past attempts to track CATV attachments which are outlined more fully in response to information request PUB-1, pg. 3 to 4 and 6 to 9.  Prospects to improve tracking of attachments are limited by the fact that neither Newfoundland Power nor Aliant Telecom actually distinguishes between joint-use and non-joint use poles or in any other definitive way.  Even if such tracking could be economically undertaken, it would not yield any perceptible consumer benefit.”

 

There was no evidence brought forward in an attempt to actually quantify the cost of tracking so the Board is unable to ascertain the actual impact of having to track the non-joint use poles if they are not included in the rate base. 

 

In his report filed with the application, Newfoundland Power’s expert witness Mr. John T. Brown stated:

“Assets used to provide telecommunications service are not directly used to provide electric power service.  However, where assets are part of an arrangement that reduces the cost of providing regulated service, they are used and required to be used and benefit the customers of regulated service by reducing the rates they pay.”   

 

Mr. Brown argued that, since the non-joint use poles are integral to the arrangement, they should be considered an investment used and useful for the purpose of rate base.  Under cross examination by Board counsel and Hydro he clarified that it was his evidence that the non-joint use poles were integral to the proposed arrangement itself, which consists of the Purchase Agreement and the Facilities Agreement. 

 

Mr. Brown also stated that, because the non-joint use poles are so integral to the arrangement, it would be difficult to split out that part of the arrangement and determine what the independent price would be for the non regulated, non-joint use poles.  It was also his position that the additional costs associated with keeping the non-joint use assets out of rate base are not justified given the relatively small size of the asset and that these costs would have to be passed on to customers eventually.  This is not an acceptable argument or justification for the Board in terms of having to consider the question of whether these poles should be included in the rate base.  As well, the Board does not accept as a given that the additional costs of tracking the non-joint use poles outside of rate base would have to be included in regulated expenses and passed on to customers.

 

In clarification of previous testimony, Mr. Ludlow stated that the non-joint use poles do carry some of the communications and data lines for the company and are therefore integral to the distribution network.  The Board is not convinced that this, in and of itself, is sufficient to meet the definition of used and useful.  Presumably Newfoundland Power already uses the non-joint use poles for this purpose.  It is not necessary, therefore, that Newfoundland Power own the non-joint use poles for this aspect of their operations to continue, or that the status quo would have a detrimental effect on the provision of electrical service.

 

In support of the Application, Newfoundland Power also provided information on Canadian joint use practices obtained by a survey of 17 Canadian electric utilities.  This information showed that the proposed arrangement, where Newfoundland Power will own all poles in its service territory, is consistent with that experienced by 7 of the 12 electric utilities.  The remaining 5 electric utilities have joint use arrangements more consistent with Newfoundland Power’s current arrangements.  However, in response to information request PUB 5.1, Newfoundland Power stated that none of the respondent electric utilities own the poles used exclusively by the telecommunications company. 

 

The Board finds that the 32,027 non-joint use poles do not meet the used and useful criteria for the purpose of being included in the rate base.   Therefore Newfoundland Power’s request for approval of capital expenditures to buy these poles is denied.

 

Approval was also requested for additional supplementary capital expenditures of $3,316,000 for distribution additions for 2001.  In response to information request PUB-10 Newfoundland Power provided a breakdown of these expenditures between the joint use and non-joint use poles.  The joint use portion of these costs is $1,881,750, and the non-joint use portion is $1,433,800.  As provided for in the Facilities Agreement, Aliant was to pay contributions to Newfoundland Power totaling $855,000 towards the cost of the additions to the non-joint use property.

 

Since the Board has decided that the non-joint use poles will not be allowed as part of the rate base, the additional capital expenditures requested for the non-joint use property will not be approved as part of the capital budget for 2001.

 

The Board was compelled to examine the argument of Newfoundland Power with respect to the effect on customers of not allowing the inclusion of the non-joint use poles in the rate base.  In addition to the operational efficiencies identified, this transaction has been presented as one which will have a net positive financial impact on the company’s revenue requirements and hence customers.  It was suggested that, in not allowing the non-joint use poles in the rate base, the Board would effectively be foregoing revenue which will not be available to customers. 

 

While the Board is extremely cognizant of its role in balancing the utility’s customer and shareholder interests, it is difficult to see the direct benefit of this transaction for customers.    The Board is not convinced, based on the information provided, that customers will actually realize any of the benefits in the same way that shareholders will since the effect on revenue requirement, and hence rates, won’t be tested until the next rate hearing.  The company indicated this will not likely occur until 2002, when rates for 2003 will be set. 

 

Indeed there may be any number of good business deals and acquisitions that the company could seek out which may generate incremental efficiencies and possibly better financial results for both customers and shareholders.  Notwithstanding these benefits, the Board will still be compelled to consider whether the addition of these assets to the rate base of the utility would meet legislative requirements.

 

2. If the 32,027 non-joint use poles are excluded from the rate base, can the Board approve the remainder of the transaction?

 

Having ruled that the 32,027 non-joint use poles are to be excluded from rate base the Board must now turn itself to the effect of this ruling.  In particular the Board must be sure from the evidence that the purchase of the remaining 69,848 joint use poles will not negatively affect revenue requirements into the future and hence ratepayers.  The Board also has to assess whether it has sufficient information to approve the remainder of the application.

 

In response to information request PUB-1, Newfoundland Power provided information on the effect of various scenarios on the revenue requirements and the return on rate base and on equity for the company for the period 2001-2005.  This evidence shows that the incremental effect on revenue requirement for the proposed transaction are as follows:

 

Proposed Transaction

Effects on Revenue Requirements

($000s)

Year                             2001                2002                2003                2004                2005

Surplus (Deficiency)        914                  498                  408                  580                  698

 

 

This shows that, for the first five years of the transaction, the revenue received by the company will exceed the revenue requirements associated with the additional pole ownership and related obligations in each year.  The rate impact analysis provided in Exhibit 10 of the pre-filed evidence also presented this information for a 10-year period with essentially the same magnitude of revenue surpluses indicated for 2006-2010 and showing an annualized net present value of the annual revenue for the 10-year period as $500,000.  However Newfoundland Power also states that, while this suggests that the new support structure arrangement will have a positive impact on future customer rates, the amount of the surplus is not large enough, in and of itself, to have a direct impact on rates.  This additional revenue will be available, however, to offset expenses.

 

If the 32,027 non-joint use poles and associated revenues are excluded from regulated rate base and revenue respectively, the effect on revenue requirements of the proposed acquisition was shown in PUB-1 as follows:

 

Proposed Transaction

Effects on Revenue Requirements

($000s)

 

Year                             2001                2002                2003                2004                2005

Surplus (Deficiency)        789                  391                  301                  439                  531

 

This evidence shows that the impacts on revenue requirements with the 32,027 non-joint use poles excluded from rate base are less positive, but still positive nonetheless.  The Board also looked to the rate impact analysis presented in Exhibit 10 for some indication as to whether alternative scenarios were explored for their impact on rates.  While the analysis presented only dealt with the proposed transaction, it was stated: “If the analysis shows a revenue surplus it would indicate that the proposed arrangement would tend to reduce rates.  A revenue deficit on the other hand would suggest that the proposed arrangement would tend to increase rates.” (Exhibit 10, page 3 of 8) 

 

It was also stated by Newfoundland Power that, if the non-joint use poles are excluded from rate base, the difference between the improved rates of return would accrue to the Company’s shareholders as opposed to consumers.   This means that the incremental surplus in regulated revenue that would result from the proposed arrangement would decrease if the revenue from the non-joint use poles was excluded.  The net positive impact would then flow directly to shareholders, and the benefit to ratepayers would be reduced by this same amount.  From the response to PUB-1, this reduced benefit to ratepayers would average $129,000 each year for the next five years.

 

On the basis of the evidence before it, the Board is satisfied that the purchase of the 69,848 joint use poles will result in a net positive financial impact on the company’s revenue requirement.  This assumes that this part of the transaction proceeds as presented with no changes in the Purchase Agreement or Facilities Agreement.

 

However, given its decision on the non-joint use poles, the Board is uncertain as to whether Newfoundland Power will proceed with the transaction as presented.  Under cross examination by Board counsel, Mr. Hughes stated that if the Board did make such a determination the utility would have to consider whether or not Newfoundland Power would want to change some aspect of the arrangement.   Mr. Brown, the utility’s expert witness, also testified that the non-joint use poles are an integral part of the overall arrangement and that, in his view, there would be a question of whether Aliant would proceed with the deal as is if they were only selling the joint use poles. 

 

Other than the information presented in PUB-1 there was little other evidence as to what effect the exclusion of the non-joint use poles from the rate base would have on the transaction, and in particular, on the Purchase Agreement and/or the Facilities Agreement.   In addition, given the evidence of the company, the Board is uncertain as to how Newfoundland Power will separate and record the costs of operating, maintaining and monitoring the non-joint use poles. 

 

It is also not clear whether Newfoundland Power will, or can, now proceed with the purchase of the 32,027 non-joint use poles.  Although not raised during this hearing, the Board brings attention to section 24(1) of the EPCA, which states:

“Subject to this Act, a retailer shall not engage or invest in or carry on any business or activity other than the business of the production, transmission, distribution or retailing of power and the business or activity that is generally related to it”.

 

Given the Board’s responsibilities under sections 16 and 17 of the Public Utilities Act, it will have to be assured that the intent of this section of the EPCA is upheld by any further action by the utility with respect to the non-joint use poles.

 

The Board considered whether it should approve the capital expenditure for the 69,848 joint use poles in light of its decision on the non-joint use poles.  Given the uncertainty outlined above, the Board is not prepared at this time to approve the application as submitted.  It will however consider a subsequent application, which will have to address the concerns noted above.

 

IT IS THEREFORE ORDERED:

 

1.                  The application by Newfoundland Power for approval of:

(i)                  the purchase by Newfoundland Power of certain additions to its property and assets; and

(ii)                for approval of an agreement concerning the terms and conditions upon which Aliant shall jointly use certain facilities of Newfoundland Power

pursuant to Sections 41 and 53 of the Act, be and is hereby denied.

 

2.         Newfoundland Power shall pay all costs associated with the hearing of this application.

 

 


Dated at St. John’s, Newfoundland this 6th day of July 2001.

 

 

 

 

 

 

 

 

                                               

                                                                                                Darlene Whalen, P.Eng.,

                                                                                                Vice-Chairperson.

                                                                                                                                               

                                                                                                ________________________

                                                                                                William B. Crosbie, P.Eng.,

                                                                                                Commissioner.

 

                                                                                                                                                                                                                                                            Gerard Martin, Q.C.,

                                                                                                Commissioner.

 

 

 

__________________________

G. Cheryl Blundon,

Director of Corporate Services and

Board Secretary.

Orders / Home