ORDERS ISSUED BY THE BOARD DURING 2007

UNDER

THE PUBLIC UTILITIES ACT

CHAPTER P- 47, 1990

 

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Newfoundland and Labrador Hydro                                                                        P.U. 1 (2007)

Application:

For approval, pursuant to Sections 70, 71 and 75 of the Act, of certain rules, regulations and rates pertaining to the supply of electrical power and energy to one of its industrial customers, Aur Resources Inc.

Decision:

1.       Page 2 of Schedule “A” of PU 31(2006) shall be replaced with the attached page 2 of 2 Schedule “A”, attached hereto as Schedule “A”, which correctly sets out that the rates established for Aur Resources Inc., in Order No. P.U. 31(2006) are interim.

2.       The Board approves, pursuant to section 75 of the Act:

(a)    Firm and Non-Firm Rates for Aur Resources Inc., attached hereto as Schedule “B”, to be effective for consumption on or after January 20, 2006 to and including September 30, 2006;

(b)    Firm and Non-Firm Rates for Aur Resources Inc., attached hereto as Schedule “C”, to be effective for consumption on or after October 1, 2006 to and including December 31, 2006; and

(c)    Refund or credit to Aur Resources Inc., of the difference for 2006 between the rates developed in accordance with the Agreement and those approved in Order No. P.U. 1(2006)

3.       The Service Agreement attached hereto as Schedule “D” is approved for the provision of service to Aur Resources Inc.

4.       Hydro shall pay the expenses of the Board incurred in connection with this matter.

Date Issued:

January 18, 2007

 

 

Newfoundland Power                                                                                              P.U. 2 (2007)

Application:

For approval, pursuant to Section 41(5) of the Act, of (i) a contribution in aid of construction (CIAC) for a line extension to serve Domestic Customers residing in a cottage area located in a Cottage Area at Nine Island Pond near Roaches Line and (ii) a deviation from the CIAC Policy applicable to Domestic Customers in relation to the calculation of the participation percentage as provided for in Clause 6 (a)(ii) of the Policy.

Decision:

Pursuant to Section 41(5) of the Act, the Board approves the Non-Refundable Contribution in Aid of Construction in the amount of Three thousand three hundred ninety-three dollars and fifty-three cents ($3,393.53), including HST, per Customer as calculated under the Policy, and the deviation from the Policy as requested in the Application, to provide single-phase service to Domestic Customers located in a Cottage Area located at Nine Island Pond near Roaches Line.

Date Issued:

January 22, 2007

 

 

Newfoundland and Labrador Hydro                                                                        P.U. 3 (2007)

Application:

For approval, pursuant to Section 75 of the Act, of rates flowing from the Rate Stabilization Plan (“RSP”) components of the rates to be charged to Island Interconnected Industrial Customers (“Industrial Customers”).

Decision:

1.       Pursuant to section 75 of the Act, the Board hereby approves on an interim basis the RSP Adjustment and Energy Rates for Hydro’s Industrial Customers as set out in the attached Schedule “A” to be effective for consumption on or after January 1, 2007.

2.       Hydro shall pay the expenses of the Board incurred in connection with this matter.

Date Issued:

January 29, 2007

 

 

Newfoundland and Labrador Hydro                                                                        P.U. 4 (2007)

Application:

For approval of the lease of office space for its Northern Region Operations (St. Anthony) pursuant to Section 41 of the Act.

Decision:

1.       Pursuant to Section 41 (3) of the Act, the Board approves the Applicant’s proposed two-year lease of garage space at St. Anthony, for a rental amount of $3,750 per month, plus HST.

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

March 20, 2007

 

 

Newfoundland and Labrador Hydro                                                                        P.U. 5 (2007)

Application:

For approval of an automobile lease pursuant to Section 41 of the Act.

Decision:

1.       Pursuant to Section 41 (3) of the Act, the Board approves the Applicant’s proposed three-year lease of an automobile in the amount of $562.69 per month (excluding HST) for a total of $6,752.28 per annum.

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

March 26, 2007

 

 

Newfoundland Power                                                                                              P.U. 6 (2007)

Application:

For approval of a contribution in aid of construction (CIAC) pursuant to Section 41(5) of the Act.

Decision:

1.       Pursuant to Section 41(5) of the Act, the Board approves the Non-Refundable CIAC of Four thousand one hundred thirty-six dollars and ninety-three cents ($4,136.93), including HST, as calculated under the Policy to provide single-phase service to Domestic Customers located in the Cottage Area described as Witless Bay Line (Phase 2) located near the community of Witless Bay.

2.       The Applicant shall pay the expenses of the Board arising from this Application.

Date Issued:

March 26, 2007

 

 

Newfoundland and Labrador Hydro                                                                        P.U. 7 (2007)

Application:

For approval of a contribution in aid of construction (CIAC) pursuant to Section 41(5) of the Act.

Decision:

1.       Pursuant to Section 41(5) of the Act, the the Contribution in Aid of Construction in the amount of Two thousand five hundred forty-seven dollars and ninety cents ($2,547.90), including HST, as calculated under the Policy to provide single-phase service to 32 seasonal residential customers located at the Northwest Arm Cottage Areas (Section C), Hare Bay, located off route 430, as calculated under the Policy is approved.

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

April 11, 2007

 

 

Newfoundland and Labrador Hydro                                                                        P.U. 8 (2007)

Application:

For approval of, inter alia, rate to be charged its customers effective January 1, 2007.

Decision:

Rate Base and Rate of Return

1.       Pursuant to Section 78 of the Act the Board approves the forecast average rate base for the 2007 test year of $1,489,323,000.

2.       Pursuant to Section 80 of the Act the Board hereby allows a rate of return on rate base, based on the 2007 test year, of 7.44%, within a range of 7.29% to 7.59%.

Rates, Rules and Regulations

3.       Pursuant to Sections 70 and 75 of the Act the Board hereby approves, on a final basis, the interim rates approved in Order Nos. P.U. 41(2006) and P.U. 3(2007) for Utility and Industrial Customers, as set out in Schedule A of this Decision and Order, effective for consumption on and after January 1, 2007.

4.       Hydro shall, within fifteen days of the Order approving final rates for customers of NP, apply to the Board for approval of final rates and Rules and Regulations for its Rural customers, and RSP Rules.

5.       Hydro shall distribute the balance of the reserve account established in Order No. P.U. 46(2006) in accordance with the provisions of the special adjustment to the RSP Hydraulic Production Variation Balance, as set out in Schedule B of this Decision and Order.

Reporting

6.       Hydro shall file with the Board no later than May 31, 2007 a copy of the terms which are proposed for the RSP review, setting out the terms of reference, the specific review objectives, a list of participants, a planned timeline and an outline of the review process.

7.       Hydro shall include in its quarterly reports, beginning with its June 30, 2007 report and ending with its December 31, 2008 report, an update on the progress of the development of a comprehensive maintenance plan and associated reliability standards.

8.       Hydro shall file with the Board no later than October 31, 2007 a report updating the progress, as of September 30, 2007, of the development of an acceptable peer group for financial KPI’s.

9.       Hydro shall file with the Board no later than June 30, 2008 a report outlining its five-year strategic plan with respect to energy conservation initiatives, including a description, timing, and cost of the program elements to be implemented by Hydro and a copy of the CDM Potential Study.

Costs

10.   Hydro shall pay the expenses of the Board arising from this Application, including the expenses of the Consumer Advocate incurred by the Board, pursuant to Sections 90(2) and 117 of the Act.

11.   Hydro shall pay costs of the Industrial Customers in the amount of $195,000 pursuant to Section 90(1) of the Act.

Date Issued:

April 12, 2007

 

 

Newfoundland Power                                                                                              P.U. 9 (2007)

Application:

For final approval of a schedule of rates, tolls and charges approved by the Board on an interim basis in Order No. P.U. 42 (2006).

Decision:

1.       Pursuant to section 70 of the “Act”, the rates, tolls and charges as set out in Schedule A are approved, to be effective on all electrical usage on and after January 1, 2007.

2.       NP shall pay the costs and expenses of the Board in connection with this application.

Date Issued:

April 20, 2007

 

 

Newfoundland Power                                                                                            P.U. 10 (2007)

Application:

In the matter of the Purchased Power Unit Cost Variance Reserve Account (the “Reserve Account”) Established by Order No. P.U. 35 (2005), an application:

(i)   Deferring Consideration of the Disposition of the Balance in the Reserve Account; and

(ii)  Approving a Revised Definition of the Reserve Account in Newfoundland Power’s System of Accounts Pursuant to Sections 58 and 70 of the Act.

Decision:

1.       Deferral of consideration of the Purchased Power Unit Cost Variance Reserve Account in to the hearing of NP’s general rate application to be filed in 2007; and

2.       Pursuant to Section 58 of the Act, the revised definition of the Purchased Power Unit Cost Variance Reserve Account, as set out in Schedule A, to be included in NP’s System of Accounts.

Date Issued:

April 24, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 11 (2007)

Application:

For approval of the Rate Stabilization Plan component of the rates to be charged to Newfoundland Power effective July 1, 2007, pursuant to Section 70 (1) of the Act.

Decision:

1.       The Board hereby approves the rates to be charged by Hydro to Newfoundland Power, as set out in Schedule A to this Order, to be effective for consumption on or after July 1, 2007.

2.       Hydro shall pay the expenses of the Board incurred in connection with this matter.

Date Issued:

May 9, 2007

 

 

Newfoundland Power                                                                                            P.U. 12 (2007)

Application:

For approval of the balance of the weather normalization reserve as of December 31, 2006, pursuant to Sections 69(3) and 78 of the Act.

Decision:

1.       NP’s weather normalization reserve of a Negative Balance of $11,808,813 as at December 31, 2006 is hereby approved.

Date Issued:

May 10, 2007

 

 

Newfoundland Power                                                                                            P.U. 13 (2007)

Application:

For approval of the:

i)        revised distribution line cost per meter for Contributions in Aid of Construction (CIAC’s);

ii)       revised distribution plant upgrade cost for CIAC’s; and

iii)     revised CIAC cost factors.

Decision:

1.       The revised cost factors submitted with the application and contained in the Schedules appended to this Order are approved to be used in the calculation of all CIAC’s with effect from May 15, 2007, and, where advantageous to customers of Newfoundland Power, on all CIAC’s quoted but unpaid as of May 15, 2007.

2.       Newfoundland Power submit a revised CIAC Policy in its entirety incorporating the revisions approved herein.

Date Issued:

May 10, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 14 (2007)

Application:

For final approval of rates to be charged for the supply of power and energy to Rural Customers, and changes in the Rules and Regulations applicable to the supply of electricity to Rural Customers pursuant to Sections 70 and 71 of the Act.

Decision:

1.       Pursuant to Sections 70 and 71 of the Act, the Board approves the Rate Stabilization Plan rules, as set out in Schedule A to this Order, effective December 31, 2006.

2.       Pursuant to Section 71 of the Act, the Board approves the Rules and Regulations applicable to providing service to Rural Customers as set out in Schedule B to this Order, effective January 1, 2007.

3.       The rates, tolls and charges for Hydro’s Rural customers are approved on a final basis, to be effective for consumption on and after January 1, 2007, as set out in Schedule C to this Order.

4.       Page 6 of 8, Schedule A, Order No. P. U 8(2007) shall be amended and replaced as set out in Schedule D to this Order.

5.       Hydro shall pay all expenses of the Board arising from this Application.

Date Issued:

May 17, 2007

 

 

Newfoundland Power                                                                                            P.U. 15 (2007)

Application:

For approval of the:

(i)            Rate Stabilization and Municipal Tax Adjustments to be applied to the rates of NP for the period July 1, 2007 to June 30, 2008; and

(ii)          a Revised Schedule of Rates, Tolls and Charges reflecting the amended Rate Stabilization and Municipal Tax Factors, effective July 1, 2007 to June 30, 2008, pursuant to Section 70 (1) of the Act.

Decision:

1.       The Rate Stabilization Adjustment of 0.157 cents/kWh as set out in Schedule A to this Order and the Municipal Tax Adjustment factor of 1.02490 as set out in Schedule B to this Order, to be applied to all bills based on consumption on and after July 1, 2007 to June 30, 2008, are approved.

2.       The rates proposed by Newfoundland Power to be effective on all electrical consumption on and after July 1, 2007 to June 30, 2008, as set out in Schedule C to this Order, are approved.

3.       Newfoundland Power shall pay the expenses of the Board in connection with this Application.

Date Issued:

May 22, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 16 (2007)

Application:

For the approval of a change in the rates to be charged for the supply of power and energy to Island Interconnected customers (excluding Burgeo School and Library) and Isolated Rural customers (excluding Government departments), pursuant to Section 70 of the Act.

Decision:

1.       The rates proposed by Hydro’s for its Island Interconnected customers (excluding Burgeo School and Library) and Isolated Rural customers (excluding Government departments) to be effective on all electrical consumption on and after July 1, 2007, as set out in Schedule A to this Order, are approved.

2.       Hydro shall pay the expenses of the Board incurred in connection with this matter.

Date Issued:

June 19, 2007

 

 

Newfoundland Power                                                                                            P.U. 17 (2007)

Application:

Procedural Order re: General Rate Application by Newfoundland Power Inc. to establish customer electricity rates for 2008.

Decision:

The registered Intervenors, the schedule of dates, and the procedures for the hearing of the Application are as set out in Appendix “A” to this Order.

Date Issued:

June 22, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 18 (2007)

Application:

For approval of certain rules and regulations pertaining to the supply of electrical power and energy to one of its industrial customer, Corner Brook Pulp and Paper Limited  (CBPP) pursuant to Sections 70 and 71 of the Act.

Decision:

1.       The Board approves the amendment of Clause 4.01 of the CBPP Service Agreement such that the sentence that reads:

“Provided the Amount of Power on Order is equal to or greater than 20,000 kW, the amount of Interruptible Demand and Energy available shall be the greater of 10% of the Amount of Power on Order and 5,000 kW.”

be deleted and replaced with:

“Provided the Amount of Power on Order is equal to or greater than 20,000 kW, the amount of Interruptible Demand and Energy available shall be the greater of 10% of the Amount of Power on Order and 5,000 kW, but for the period from May 1, 2007 through to December 31, 2007, both inclusive, the amount of Interruptible Demand and Energy available shall be 15,200 kW.”

2.       Hydro shall pay the expenses of the Board arising out of this Application.

Date Issued:

June 28, 2007

 

 

Newfoundland Power                                                                                            P.U. 19 (2007)

Application:

Request for an amendment to Order No. P. U. 13(2007) (Appendix C, Schedule D – Distribution Plan Upgrade Cost for General Service CIACs).

Decision:

Board Order No. P. U. 13(2007) be amended by deleting therefrom Schedule D, Distribution Plant Upgrade Cost for General Service CIACs, and substituting therefore the Schedule appended to this Order.

Date Issued:

June 28, 2007

 

 

Newfoundland Power                                                                                            P.U. 20 (2007)

Application:

Approval of a Contribution in Aid of Construction (“CIAC”) for a line extension to serve cottage area customers (the “Customers”) located at pursuant to Section 41(5) of the Act

Decision:

1.       The Board approves the Non-Refundable CIAC of Three thousand eight hundred fifteen dollars and one cent ($3,815.01), including HST, as calculated under the Policy to provide single-phase service to Domestic Customers located in the Cottage Area described as Beachy Cove Pond, pursuant to s. 41(5) of the Act,

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

June 28, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 21 (2007)

Application:

For approval of rate rebates for Hydro’s domestic customers served from the Labrador Isolated and L’Anse au Loup (Labrador Straits) systems, pursuant to Section 70(1) of the Act.

Decision:

1.       The Board approves the implementation by Hydro of a rebate to its domestic customers served from the Labrador Isolated and L’Anse au Loup (Labrador Straits) system.

2.       The rebate will be an amount credited to each customer’s bill such that the basic customer charge and the lifeline energy block  (seasonal) for those customers is equivalent to that charged for the same service to Hydro’s residential Happy Valley-Goose Bay Labrador Interconnected electricity customers.

3.       The rebate shall be effective for bills issued on and after July 1, 2007.

4.       Hydro shall not recover the rebate or any associated costs through rates charged to electricity consumers.

Date Issued:

July 6, 2007

 

 

Newfoundland Power                                                                                            P.U. 22 (2007)

Application:

Approval of a Contribution in Aid of Construction (“CIAC”) for a line extension to serve cottage area customers (the “Customers”) located at pursuant to Section 41(5) of the Act

Decision:

1.       The Board approves the Non-Refundable CIAC of Four thousand three dollars and thirty-two cent ($4,003.32), including HST, as calculated under the Policy to provide single-phase service to Domestic Customers located in the Cottage Area described as Paul’s Lake located near Badger Lake, pursuant to s. 41(5) of the Act.

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

July 18, 2007

 

 

Newfoundland Power                                                                                            P.U. 23 (2007)

Application:

Approval of a Contribution in Aid of Construction (“CIAC”) for a line extension to serve cottage area customers (the “Customers”) located at pursuant to Section 41(5) of the Act

Decision:

1.       The Board approves the Non-Refundable CIAC of Seven thousand six hundred seventy dollars and seventy-eight cent ($7,670.78), including HST, as calculated under the Policy to provide single-phase service to Domestic Customers located in the Cottage Area described as Snow’s Pond, located near the community of North River, Conception Bay, pursuant to s. 41(5) of the Act.

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

July 18, 2007

 

 

Newfoundland Power                                                                                            P.U. 24 (2007)

Application:

Approval to issue Series AL First Mortgage Sinking Fund Bonds pursuant to Section 91 of the Act.

Decision:

1.       Approval is hereby given to Newfoundland Power to issue Series AL First Mortgage Sinking Fund Bonds in an amount of up to $75,000,000 and on the general terms set out in the Application subject to the following conditions:

(a)    The Bonds shall be issued on or before December 31, 2007.

(b)    Newfoundland Power shall provide to the Board an Affidavit specifying the terms and conditions of the Bond issue within five (5) days (non-business days excepted) after closing the Bond issue.  In particular, the Affidavit shall set forth the following:

(i)                  date of the issue;

(ii)                term;

(iii)               maturity date;

(iv)              principal amount;

(v)                coupon rate;

(vi)              particulars of sinking fund, if any;

(vii)             price to the public and to the underwriters;

(viii)           yield to the public;

(ix)              agency fee;

(x)                actual cost (i.e. yield) to Newfoundland Power; and

(xi)              any other material terms or conditions not contemplated at the date of the Application but forming part of the negotiated terms and conditions.

(c)    Newfoundland Power shall provide to the Board a copy of the Agency Agreement relating to the Bond issue within five (5) days (non-business days excepted) after closing the Bond issue.

(d)    The proceeds from the Bond issue shall be used in the manner set out in paragraph 9 of the Application, and Newfoundland Power shall report by Affidavit to the Board on the disposition of the proceeds no later than January 15, 2008.

2.       All costs and expenses incurred by the Board in connection with the Application shall be borne by Newfoundland Power.

Date Issued:

July 26, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 25 (2007)

Application:

For the approval of (1) the construction of off-loading ramps for mobile transmission line maintenance equipment, and (2) the acquisition and installation of an ICP Spectrometer for the Holyrood Generating Station, pursuant to Section 41(3) of the Act.

Decision:

1.       The additional 2007 capital expenditure of $231,000 to acquire an install an inductively coupled plasma mass spectrometer for use at Hydro’s Holyrood Thermal Generating Station is approved.

2.       The withdrawal by Hydro of the Application for approval of additional 2007 capital expenditures in relation to the off-loading ramps is accepted and this Application will be set over and considered as part of Hydro’s 2008 capital budget application, which is currently before the Board.

3.       Hydro shall pay the expense of the Board arising from this Application.

Date Issued:

August 31, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 26 (2007)

Application:

For the approval of a contribution in aid of construction (CIAC) for a three-phase line extension to serve the Anaconda Mining Inc., mine site located at Pine Cove, off Route 418, pursuant to Section 41(5) of the Act.

Decision:

1.       The Board approves the contribution in aid of construction in the amount of $314,325.91, including HST, for the supply of three-phase electrical service to one general service customers, Anaconda Mining Inc., located at Pine Cove, off Route 418, as calculated under the Policy, pursuant to s. 41(5) of the Act.

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

September 4, 2007

 

 

Newfoundland Power                                                     P.U. 27 (2007)  see also P.U. 21 (2008)

Application:

Application for approval of (a) its 2008 Capital Budget of $50,754,000; and (b) fixing and determining its average rate base for 2006 in the amount of $752,917,000.

Decision:

1.       Pursuant to Section 41 of the Act, NP’s capital purchases and construction projects in excess of $50,000, as set out in Schedule A to this Order, are approved.

2.       Pursuant to Section 41 of the Act, the 2008 Capital Budget for improvement and additions to NP’s property in an amount of $ 50,754,000 is approved.

3.       Pursuant to Section 78 of the Act, the rate base for the year ending December 31, 2006 is hereby fixed and determined at $ 752,917,000.

4.       Unless otherwise directed by the Board, NP shall file an annual report to the Board on its 2008 capital expenditures by March 1, 2009.

5.       Unless otherwise directed by the Board, NP shall provide in conjunction with the 2009 Capital Budget Application, a status report on the 2008 capital budget expenditures showing for each project:

(i)                   the approved budget for 2008;

(ii)                 the expenditures prior to 2008;

(iii)                the 2008 expenditures to the date of the application;

(iv)               the remaining projected expenditures for 2008;

(v)                 the variance between the projected total expenditures and the approved budget; and

(vi)               an explanation of the variance.

6.       NP shall pay all costs and expenses of the Board incurred in connection with the Application.

Date Issued:

September 19, 2007

 

 

Newfoundland Power                                                                                            P.U. 28 (2007)

Application:

Re: General Rate Application by Newfoundland Power Inc. to establish customer electricity rates for 2008.

Decision:

1.       The remaining schedule of dates for the proceeding will be as set out in Appendix “A”, unless otherwise determined by the Board.

Date Issued:

October 5, 2007

 

 

Newfoundland Power                                                                                            P.U. 29 (2007)

Application:

Approval of a Contribution in Aid of Construction (“CIAC”) for a line extension to serve cottage area customers (the “Customers”) located at pursuant to Section 41(5) of the Act.

Decision:

1.       The Board approves the Non-Refundable CIAC of One thousand six hundred nineteen dollars and ninety-four cent ($1,619.94), including HST, as calculated under the Policy to provide single-phase service to Domestic Customers located in the Cottage Area known as Dribble Road located near Robinsons, pursuant to s. 41(5) of the Act.

2.       The Applicant shall pay all expenses of the Board arising from this Application.

Date Issued:

November 8, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 30 (2007)

Application:

Application for approval of (a) its 2008 Capital Budget of $45,061,000; (b) its 2008 capital budget purchases and construction projects in excess of $50,000; (c) the proposed estimated contributions in aid of construction for 2008; and (d) fixing and determining its average rate base for 2006 in the amount of $1,472,184,000.

Decision:

1.       Pursuant to Section 41 of the Act, Hydro’s proposed capital purchases and construction projects in excess of $50,000 are approved, as set out in Schedule A to this Order.

2.       Pursuant to Section 41 of the Act, the following projects as proposed by Hydro are not approved:

(i)                   Upgrade Continuous Emissions Monitoring System (pg. B-39) $688,900;

(ii)                 Construct Bushing Storage Building (pg. B-136) $334,900; and

(iii)                Public Address System – Holyrood (pg. B-192) $1,139,100.

3.       Pursuant to Section 41 of the Act, the project “Replace Line Camp 98 – TL-228 (pg. B-89) $500,000” is approved but the costs for this project shall not be recovered from customers unless otherwise directed by the Board.

4.       Pursuant to Section 41 of the Act, the 2008 Capital Budget for improvement and additions to Hydro’s property in an amount of $ 42,898,100 is approved.

5.       Pursuant to Section 78 of the Act, the rate base for the year ending December 31, 2006 is hereby fixed and determined at $ 1,472,184,000.

6.       Unless otherwise directed by the Board, Hydro shall file an annual report to the Board on its 2008 capital expenditures by March 1, 2009.

7.       Unless otherwise directed by the Board Hydro shall provide, in conjunction with the 2009 Capital Budget Application, a status report on the 2008 capital budget expenditures showing for each project:

(i)                   the approved budget for 2008;

(ii)                 the expenditures prior to 2008;

(iii)                the 2008 expenditures to the date of the application;

(iv)               the remaining projected expenditures for 2008;

(v)                 the variance between the projected total expenditures and the approved budget; and

(vi)               an explanation of the variance.

8.       Unless otherwise directed by the Board Hydro shall file, commencing with the 2009 Capital Budget Application, a five-year Capital Expenditure Plan in accordance with the findings of the Board in this Decision and Order.

9.       Hydro shall file, in conjunction with the 2009 Capital Budget Application, a report on the System Security Upgrade program in accordance with the findings of the Board in this Decision and Order.

10.   Hydro shall pay all costs and expenses of the Board incurred in connection with the Application.

Date Issued:

November 22, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 31 (2007)

Application:

Application for approval of the Board to proceed with the construction of a wind-hydrogen diesel generation project at Ramea, pursuant to Section 41(3) of the Act.

Decision:

1.       Hydro may proceed with the construction and installation of the Wind-Hydrogen-Diesel System as proposed, in the amount of $8,794,000, with spending of approximately $1,272,000 in 2007 and $7,522,000 in 2008.

2.       Unless otherwise ordered by the Board, ratepayers will not bear any of the costs relating to the Wind-Hydrogen-Diesel System.

3.       Hydro shall treat all costs related to the Wind-Hydrogen-Diesel System as non-regulated in accordance with the methodology, policies and procedures in place for the treatment of non-regulated activities.

4.       Unless otherwise directed by the Board, Hydro shall provide a quarterly update on the status of the Wind-Hydrogen-Diesel System in each quarterly report to the Board, setting out details as to implementation and operation of this system, capital and operating costs, variances from budget, reliability and safety issues.

5.       Hydro shall file a report to the Board within ninety days of the conclusion of the operational testing phase addressing in detail Hydro’s conclusions and plans in relation to the Wind-Hydrogen-Diesel System.

6.       Hydro shall pay all expenses of the Board arising from this application.

Date Issued:

November 30, 2007

 

 

Newfoundland Power                                                                                            P.U. 32 (2007)

Application:

General Rate Application by Newfoundland Power Inc. to establish customer electricity rates for 2008.

Decision:

                           RATE BASE AND RATE OF RETURN

1.       NP’s proposed forecast average rate base for the 2008 test year of $812,212,000, calculated in accordance with the Asset Rate Base Method, is approved.

2.       NP’s proposed rate of return on average rate base for the 2008 test year of 8.37% in a range of 8.19% to 8.55% is approved.

                           Rates, Rules and Regulations

3.       The rates proposed by NP are approved as set out in Schedule A of this Decision and Order, effective for consumption on and after January 1, 2008.

4.       The changes to the Rules and Regulations proposed by NP are approved and NP shall file with the Board, within 30 days of this Order, NP’s Rules and Regulations revised to reflect changes to:

i.                    the Rate Stabilization Clause to provide for the recovery through the Rate Stabilization Account of the Energy Supply Cost Variance incurred through to the end of 2010, as set out in Schedule B of this Decision and Order;

ii.                  Regulation 9(b) and 9(c) to permit charges for temporary connections, special facilities and relocations to be added to customer bills, as set out in Section C of this Decision and Order; and

iii.                Regulation 10(d) to increase the rejected payment fee, as set out in Schedule C of this Decision and Order.

                           AUTOMATIC ADJUSTMENT FORMULA

5.       NP’s proposed use of the Automatic Adjustment Formula, changed to reflect the adoption of the Asset Rate Base Method for calculating rate base, to establish the rate of return on rate base for three years following the test year is approved, unless otherwise directed by the Board.

6.       NP shall, unless otherwise directed by the Board, apply no later than November 30th in each year for the application of the Automatic Adjustment Formula to the rate of return on rate base and for a revised Schedule of Rates, Tolls and Charges effective January 1 in each year following.

7.   NP shall, unless otherwise directed by the Board, file its next general rate application with the Board by June 30, 2010 with a 2011 test year.

ACCOUNTING TREATMENT AND POLICIES

8.   NP’s proposed amortizations are approved with effect from January 1, 2008 as follows:

i.    Amortization over a three-year period of:

a)      $16,446,000 of 2005 unbilled revenue;

b)      $4,087,000 in revenue related to municipal tax timing reconciliation;

c)       $11,586,000 in deferred 2006 and 2007 depreciation costs;

d)      $1,147,000 in deferred 2007 replacement energy costs associated with the Rattling Brook Hydro Generating Plant refurbishment;

e)      the $1,342,000 balance in the Purchased Power Unit Cost Variation Reserve Account; and

f)       $1,250,000 in recovery of hearing costs.

ii.    Amortization over a five-year period of the $6,800,000 balance in the Degree Day Component of the Weather Normalization Reserve.

9.       NP’s proposal to adjust the depreciation expense to amortize the accumulated reserve variance of $700,000 over the four-year period 2008-2011 is approved.

10.   NP’s proposal to use the depreciation rates as recommended in the 2006 Depreciation Study is approved.

11.   NP’s proposal to adopt the accrual method of accounting for income tax related to pension costs is approved.

12.   NP’s proposal to continue using the cash basis for recognizing expenses for other employee future benefits is approved.

13.   NP’s proposal to discontinue the Purchased Power Unit Cost Variation Reserve Account and establish the Demand Management Incentive Account is approved, as set out in Schedule D of this Decision and Order.

14.   NP’s proposal to create a deferral account to true-up the income tax expense for the 2008 test year and subsequent years until its next general rate application to reflect the proposed 2008 corporate tax changes announced by the Federal Government on October 30, 2007 is approved, with the disposition of the account balance, if any, to be subject to a further order of the Board.

15.   NP shall file with the Board, no later than December 31, 2011 a new depreciation study related to plant in service as of December 31, 2010.

                           Reporting

16.   NP shall, unless otherwise directed by the Board, file with the Board, on or before March 31, 2008, a fair market value determination for insurance services recommending an appropriate charge-out rate.

17.   NP shall, unless otherwise directed by the Board, report to the Board within 90 days of the finalization of the CEA reliability performance indicators as to the incorporation of these standards into the existing regulatory framework for NP.

18.   NP shall, unless otherwise directed by the Board, as part of its next general rate application include detailed information concerning the method used to forecast its test year FTEs and labour expense, as well as an explanation of the assumptions used to determine the forecast vacancies.

19.   NP shall, unless otherwise directed by the Board, as part of its next general rate application include a report on the operation of the Demand Management Incentive Account.

20.   NP shall, unless otherwise directed by the Board, provide an update as part of its quarterly reporting to the Board on the status of the AcSB’s considerations of the transition to IFRS.

21.   NP shall, unless otherwise directed by the Board, provide an update as part of its quarterly reporting to the Board on the progress of NP’s retail customer rate review.

22.   NP shall, unless otherwise directed by the Board, file as a part of its annual return to the Board, information relating to changes in deferred charges, including pension costs.

23.   NP shall, unless otherwise directed by the Board, file:

i.        With its annual return, a modified schedule calculating the embedded cost of debt for the reporting year to identify specifically the causes of variations in the actual embedded cost of debt from the cost forecast for the test year; and

ii.      With its annual return, where in a year the actual rate of return on equity is greater than 50 basis points above the calculation of cost of equity for the same year, a report explaining the circumstances and facts contributing to the difference.

                           HEARING COSTS

24.  NP shall pay the expenses of the Board arising from this Application, including the expenses of the Consumer Advocate incurred by the Board.

Date Issued:

December 19, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 33 (2007)

Application:

Application for Rate Changes to Labrador Interconnected Customers (Interim Order).

Decision:

1.       The decrease of the monthly amount of the 2008 automatic rate adjustment in the Rural Rate Alteration for the Labrador Interconnected customers in the Rate Stabilization Plan from $92,560 to $32,433, is approved on an interim basis; and

2.       The Schedule of Rates for the Labrador Interconnected customers attached in Schedule A is approved on an interim basis, effective January 1, 2008; and

3.       Hydro shall pay all expenses of the Board arising from this Application.

Date Issued:

December 21, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 34 (2007)

Application:

Application for Rate Changes to Industrial Customers (Interim Order).

Decision:

1.       Pursuant to Section 75 of the Act, the Board approves, on an interim basis, the Industrial Customer rates as attached in Schedule A, to be effective for consumption on and after January 1, 2008, until a final Order of the Board with respect to Industrial Customers’ rates for 2008.

2.       Hydro shall pay all expenses of the Board arising from this Application.

Date Issued:

December 21, 2007

 

 

Newfoundland and Labrador Hydro                                                                      P.U. 35 (2007)

Application:

An application by Newfoundland and Labrador Hydro ("Hydro") for approval of a change in the rates to be charged for the supply of power and energy to Island Interconnected customers (excluding Burgeo school and library) and Isolated Rural customers (excluding Government Departments), pursuant to Sections 70 and 71 of the Act.

Decision:

1.       The Board approves on an interim basis the rates as attached in Schedule A to be effective for consumption on and after January 1, 2008 until a final order of the Board with respect to the within matter.

2.       The continuation of the rebate to Hydro's domestic customers served from the Labrador Isolated and L'Anse au Loup (Labrador Straits) system is approved on an interim basis.

3.       Hydro shall pay all expenses of the Board arising from this Application.

Date Issued:

December 24, 2007

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