P.U.  1(2000-2001)

 

 

IN THE MATTER OF THE PUBLIC                     

UTILITIES ACT, R.S.N. 1990,

CHAPTER P-47 ("THE ACT")

 

AND

 

IN THE MATTER OF AN APPLICATION

BY NEWFOUNDLAND POWER INC.

(THE “APPLICANT”)TO AMEND THE

CONTRIBUTION IN AID OF CONSTRUCTION

(CIAC) POLICY OF THE APPLICANT,

APPROVED BY ORDER NO. P.U. 7 (1997-98)

PURSUANT TO SECTION 41 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 in Order No. P.U. 7 (1997-98) the Board of Commissioners of Public Utilities (the “Board”) approved a revised CIAC Policy for the Applicant, which became effective on October 1, 1997 (the “Policy”) and which established the terms and conditions under which the Applicant may demand a contribution towards the cost of an improvement or addition to its property, and

WHEREAS the Policy provides that, for customers whose premises are located on the opposite side of the road from where the Applicant’s distribution line is located, the length of line required to cross the road right-of-way shall not be included in the calculation of the CIAC, and

 

WHEREAS a question has arisen with respect to the interpretation of the said provision and, in order to clarify the interpretation of the Policy, the Applicant has proposed that the Policy be amended by revising Clause 3 (c) of the CIAC Policy: Distribution Line Extensions to Residential and Seasonal Residential Customers (the “Residential Policy”) and Clause 3 of the CIAC Policy: Distribution Line Extensions and Upgrades to General Service Customers (the “General Service Policy”), and

 

WHEREAS in Order No. P.U. 39 (1998-99) the Board approved revised distribution line Cost Per Metre factors to be used in conjunction with the Policy in the calculation of all CIACs effective from December 11, 1998, and

 

            WHEREAS the Policy provides that, for line extensions jointly used by the Applicant and NewTel Communications Inc., the construction cost used to calculate the CIAC shall be reduced and the reduction is accomplished by the use of separate joint-use Distribution Line Cost Per Metre factors and Distribution Plant Support factors, and

            WHEREAS the use of separate joint-use factors has the effect of distorting the calculation of CIAC amounts for three-phase services whose load does not support the additional plant required, and

            WHEREAS to rectify this situation, the Applicant has proposed that the use of separate joint-use Distribution Line Cost Per Metre factors and Distribution Plant Support factors be replaced with a Joint-Use Allowance Credit Per Metre and that the Policy be amended by revising Clause 7 of both the Residential Policy and the General Service Policy, and

            WHEREAS Clause 11 of the Residential Policy sets out certain conditions applicable to the payment of CIACs by residential and seasonal residential customers and, in order to provide customers with more flexible payment options, the Applicant has proposed that Clause 11 be amended, and

WHEREAS Clause 9 of the General Service Policy sets out certain conditions applicable to the payment of CIACs by general service customers and, in order to provide customers with more flexible payment options, the Applicant proposes that Clause 9 be amended, and 

            WHEREAS the proposed revision to Clause 11 of the Residential Policy and Clause 9 of the General Service Policy provide customers with more flexible options for the payment of CIACs with no material increase in the financial risk to the Applicant.

IT IS THEREFORE ORDERED THAT: 

 

Pursuant to Section 41 of the Act, the Board approves the revision of Clauses 3 (c), 7 and 11 of the Residential Policy, and Clauses 3, 7 and 9 of the General Service Policy as attached hereto and marked Schedule “A”, Schedule “B” and Schedule “C”, respectively.

 

DATED at St. John’s, Newfoundland, this 4th day of  April, 2000.

 

                                                                                    ________________________

                                                                                    David A. Vardy,

                                                                                    Chairperson.

 

                                                                                                                                   

                                                                                    John William Finn, Q.C.,

                                                                                    Commissioner.

 

                                                                                                                                   

                                                                                    G. Fred Saunders

                                                                                    Commissioner.

 

                                                                                                                                   

                                                                                    Darlene Whalen, M.A.Sc., P.Eng.,

                                                                                    Commissioner.

 

 

_____________________

G. Cheryl Blundon,

Director of Corporate Services

   and Board Secretary.

 

 

 Orders  /  Home