P.U.
36 (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
an Ex Parte application by
Newfoundland
and Labrador Hydro (the “Applicant”)
for
approval, pursuant to Section 41 of the Act, for
the
lease of upgrades to certain computer equipment.
WHEREAS pursuant to P.U. 19
(1999-2000) dated 25 November, 1999, the Board approved the capital budget of
the Applicant for the fiscal year 2000 (the “Capital Budget Order”); and
WHEREAS in Section A of the
Capital Budget Order, the Board approved the Applicant’s proposal to spend
$103,000 for the item referred to as “Increase AS400 DASD System”, which is a
disk upgrade; and
WHEREAS the Applicant has
advised that the purchase of the disk upgrade was deferred to 2001 and will be
represented as a carryover from the 2000 Capital Budget; and
WHEREAS on January 31st,
2001, the Applicant applied to the Board for approval to enter into a lease
instead of purchase for the computer equipment as it will be more cost
effective; and
WHEREAS the proposed arrangement
will result in the elimination of this item from the 2000 Capital Budget and
the inclusion of the new lease in the 2001 Capital Budget; and
WHEREAS the lease for the disk
upgrade is at an annual rate of $51,996 ($4,333 per month) for a period of 14
months, to expire in April 2002, for a total lease cost of $60,662; and
WHEREAS, since this lease
is for an amount which exceeds $5,000 in a year of the lease, the Applicant is
required by the Act to have the lease approved by the Board and has made
application for such approval.
IT IS THEREFORE ORDERED
THAT:
1. The Applicant’s proposed
lease for the disk upgrade for the IBM AS/400 Development Computer is hereby
approved.
2. P.U.19 (1999-2000) is
hereby amended such that the amount of $103,000 previously approved shall be
excluded from the approved expenditures for 2000 and not allowed as a carryover
to 2001.
3. The Applicant shall file
an amended Section D “2001 Leasing Costs” to form part of the 2001 Capital
Budget as approved by Order No. P.U. 31 (2000-2001).
DATED at St. John's, Newfoundland, this 22nd day of February, 2001.
Robert Noseworthy,
Chairperson and Chief Executive Officer.
Darlene Whalen, P.Eng.,
Vice-Chairperson.
G. Fred Saunders,
Commissioner.
Barbara Thistle,
Assistant Board Secretary