P.U.  17 (2000-2001)

 

 

 

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 (“CIAC”) for a line extension

to serve the Town of Heart’s Delight-Islington

(“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 also subject to the provisions of the Electrical Power Control Act, 1994; and

 

WHEREAS the Customer will operate a water treatment plant in the Town of Heart’s Delight-Islington; and

 

WHEREAS the Customer has requested that the Applicant provide its facility at Heart’s Delight-Islington with three phase electrical service which, in order to so provide, requires an upgrade of 965 metres of single phase line to three phase standard and the construction of 107 metres of additional three phase line (the “Extension”); and

 

WHEREAS the Extension will not be jointly used by the Applicant and NewTel Communications Inc.; and

 

WHEREAS the maximum demand of the Customer is estimated to be less than 75kW and in accordance with Regulation 5(b) of the Rates, Rules and Regulations approved from time to time by the Board, a Contribution in Aid of Construction (“CIAC”) is required to cover the cost of transformers, equipment and any line extension or 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 Line has been calculated in accordance with Clause 5(b) of the distribution line CIAC Policy of the Applicant for 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 water treatment plant with an estimated peak demand of 32.4 kW, and the CIAC thus calculated is Twenty-two thousand fifty-one dollars and twenty-five cents ($22,051.25), including HST; and

 

WHEREAS the construction cost of the Extension is $32,895 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 in the amount of Twenty-two thousand fifty-one dollars and twenty-five cents ($22,051.25) including HST, as calculated under the Policy.


 

                                                                                               

DATED at St. John’s, Newfoundland this 10th day of August, 2000.

 

 

 

 

                                                                                                ________________________________

                                                                                                David A. Vardy,

                                                                                                Chair & Chief Executive Officer.

 

                                                                                   

                                                                       

                                                                                                ______________________________

                                                                                                Darlene Whalen, P.Eng.,

                                                                                                Vice-Chairperson.

 

 

__________________________

G. Cheryl Blundon,

Board Secretary.

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