P.U. 11  (2001-2002)

 

 

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 seasonal customers (“the Customers”)

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 Customers consist of forty-five Seasonal Customers whose seasonal residences are located in an area known as Ryan’s Pond near Brigus Junction; and

 

WHEREAS the Customers have requested that the Applicant provide their seasonal residences at Ryan’s Pond with single-phase electrical service which, in order to so provide, requires the Applicant to utilize an existing 12, 320 meter line extension constructed to serve seasonal customers at Second Junction Pond, Jack’s Pond and Whelan’s Pond (the “Existing Extension”) and construct  a further 7,584 meter single-phase extension (the “New Extension”); and

 

WHEREAS the New Extension will not be jointly used by the Applicant and Aliant Telecom Inc.; and

 

WHEREAS a CIAC of the New Extension has been calculated in accordance with Clause 5(b) and Clause 5(c) of the CIAC Policy: Distribution Line Extensions To Residential and Seasonal Residential Customers approved by Order No. P.U. 7 (1997-98) dated the 30th day of September 1997 (the “Policy”), and the CIAC thus calculated is Four thousand seven hundred seventy-seven dollars and twenty-five cents ($4,777.25), including HST; and

 

WHEREAS a CIAC of the Existing Extension has been calculated in accordance with Clause 5(b) and Clause 5(c) of the Policy, based on the number of customers currently served by the Existing Extension, and the CIAC thus calculated is Five thousand four hundred ninety-eight dollars and fifty-two cents ($5,498.52), including HST; and

 

WHEREAS the New Extension represents an addition to the Existing Extension and includes a continuous section of more than 300 meters of line with no customer premises located thereon which, in accordance with Clause 5(e) of the Policy, is deemed a separate line extension; and

 

WHEREAS the Applicant proposes to deviate from the literal wording of Clause 5 (e) by including the New Extension and the Existing Extension in a single CIAC calculation because in the present circumstances the inclusion of the Customers who would be treated separately on a literal interpretation of Clause 5 (e) results in the reduction of the average CIAC for those customers served by the Existing Extension and the intent of the Policy would not be served by separating them; and

 

WHEREAS the average CIAC amount for all customers served by the Existing Extension and the New Extension is $5,203.46; and

 

WHEREAS by Order No. P.U. 28 (2000-2001) the Board approved a CIAC amount of $5,060.46 for customers served by the Existing Extension and the suspension of refunds to these customers until a shortfall in the CIAC is recovered; and

 

WHEREAS the Applicant proposes to charge the Customer $5,060.46 and to suspend the entitlement to Customers to refunds as calculated under Clause 6 of the Policy until the shortfall of $143.00 is recovered; and

 

WHEREAS the construction cost of the New Extension is $218,016 and Clause 12(a) of the Policy requires all Line extensions involving CIACs where the construction costs are estimated to be greater than $25,000 must be submitted to the Board for approval; and

 

WHEREAS Clause 12(b) of the Policy requires that all deviations from the Policy in the calculation of CIACs for Line extensions must be submitted to the Board for approval; and

 

WHEREAS Clause 12(c) of the Policy requires that all CIACs for Main Line extensions for primarily seasonal residential customers be submitted to the Board for approval; and

 

WHEREAS the proposed CIAC and suspension of refunds is necessary to ensure that the Applicant’s investment in the New Extension is compensatory over the useful life of the New Extension and will not be to the detriment of the Applicant’s other customers; and

 

WHEREAS the proposed expenditures on the New Extension are necessary for the Applicant to provide service and facilities to the Customers which are reasonably safe and adequate and just and reasonable as required pursuant to s. 37 of the Act; and

 

WHEREAS the Board is satisfied that the deviation from the requirements of Clause 5 (e) of the Policy is reasonable in the circumstances.

 

 

IT IS THEREFORE ORDERED THAT:

 

Pursuant to Section 41(5) of the Act, the Board approves:

 

(1)        the CIAC in the amount of Five thousand sixty dollars and forty-six cents ($5,060.46), including HST, for the Customers, as calculated under the Policy; and

(2)        the suspension of the payment of refunds to the Customers until the shortfall of $143.00 per customer is recovered.

           


                                                                                   

DATED at St. John’s, Newfoundland this 26th day of July 2001.  

 

 

 

 

 

 

 

                                                                                                                                                           

Robert Noseworthy,

Chair & Chief Executive Officer.

 

 

                                                                 

Darlene Whalen, P.Eng.,

Vice-Chairperson

 

 

                                                                                                                                                           

                                                                                          Raymond A. Pollett,

                                                                                          Commissioner.

 

 

                                                                                                                                                           

                                                                                          G. Fred Saunders,

                                                                                          Commissioner.

 

 

                                                                                                

G. Cheryl Blundon,

Board Secretary.

 

 

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