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ORDERS ISSUED BY THE BOARD DURING 2019

UNDER THE PUBLIC UTILITIES ACT CHAPTER P- 47, 1990

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Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro pursuant to section 71 of the Act, for an exemption to Regulation 17.
  Decision:  
 
  1. An exemption to Regulation 17 to allow for a service connection for the Early Childhood Development Association is approved. 
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  January 23, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  A general rate application by Newfoundland Power Inc. for approval of, inter alia, rates to be charged to its customers for 2019 and 2020.
  Decision:  
             Rate Base, Return on Rate Base and Range of Return

  1. The forecast average rate base for 2019 of $1,146,176,000 and for 2020 of $1,179,055,000 are approved.
  2. The rate of return on average rate base for 2019 of 7.01% in a range of 6.83% to 7.19% and for 2020 of 7.04% in a range of 6.86% to 7.22% are approved.
  3. Newfoundland Power shall file an application on or before November 15, 2020 for approval of the 2021 forecast average rate base and rate of return on rate base maintaining the ratemaking common equity ratio and return on common equity accepted for rate making purposes in this Order.
  4. The use of an automatic adjustment formula shall continue to be suspended pending a further Order of the Board.
  5. Newfoundland Power shall, unless otherwise directed by the Board, file its next general rate application, no later than June 1, 2021.
  6. Depreciation

  7. Newfoundland Power’s proposal to use the depreciation rates recommended in the 2014 Depreciation Study as approved in Order P.U. No. 18(2016) for the calculation of depreciation expense with effect from January 1, 2019 is approved.
  8. Other Regulatory Matters

  9. The amortization from March 1, 2019 to December 31, 2021 of the estimated hearing costs in the amount of $1.0 million is approved, and any difference between actual costs and the estimated costs shall be rebated/collected through the Rate Stabilization Account.
  10. The amortization from March 1, 2019 to December 31, 2021 of a forecast revenue surplus for 2019 of $2,482,000 resulting from the March 1, 2019 implementation of rates is approved.
  11. The revenue requirement shortfall estimated to be $145,000 for 2019 and $258,000 for 2020 shall be charged to the Rate Stabilization Account at July 1 each year and such amounts shall be refunded/collected in the 12 month periods following 2019 and 2020 Rate Stabilization Account adjustments.
  12. The proposed change in accounting policy regarding the capitalization of pension expenses associated with Accounting Standards Update 2017-07 issued by the Financial Accounting Standards Board is approved.
  13. Rates, Rules and Regulations

  14. Newfoundland Power’s proposed changes to the rules and regulations covering service, and proposed changes to rate design and structure are approved.
  15. The Schedule of Rates, Tolls and Charges of Newfoundland Power as set out in Schedule A, to be effective for all electrical consumption on and after March 1, 2019 is approved.
  16. The Rules and Regulations of Newfoundland Power as set out in Schedule B to be effective on or after March 1, 2019 are approved.
  17. Costs

  18. Newfoundland Power shall pay the costs and expenses of the Board arising from the Application, including the expenses of the Consumer Advocate incurred by the Board.
  Date Issued:  
  January 24, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for a line extension to provide three-phase service to the Town of Gander, pursuant to section 41 of the Act.
  Decision:  
 
  1. The Contribution in Aid of Construction of one hundred and two thousand eight hundred and fifty-seven dollars ($102,857.00), excluding HST, to provide three-phase service to a wastewater treatment plant operated by the Town of Gander is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  January 30, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro pursuant to section 70 for approval of the Rate Stabilization Plan components of the rates to be charged to Island Industrial Customers effective January 1, 2019.
  Decision:  
 
  1. The Island Industrial Customer rates to be effective on all electrical consumption on and after January 1, 2019, as set out in Schedule A to this Order, are approved on an interim basis.

  2. Hydro shall pay the expenses of the Board arising from this Application.
  Date Issued:  
  January 30, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for approval of a capital expenditure for a substation on the Memorial University of Newfoundland St. John’s campus, pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $4,600,000 for the addition of a substation on the north side of the MUN St. John's campus is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  February 19, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for approval of a capital expenditure for a substation transformer at Newfoundland Power’s Pepperrell Substation and the construction of a three-phase distribution feeder line from Pepperrell Substation, pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $2,642,000 for the addition of a substation transformer at Newfoundland Power’s Pepperrell Substation and the construction of a three-phase distribution feeder line from the Pepperrell Substation is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  February 19, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of a capital expenditure to supplement the 2019 Allowance for Unforeseen Items for the construction and purchase of certain improvements and additions to its property pursuant to section 41 of the Act.
  Decision:  
 
  1. The addition of a supplementary amount of $600,000 to the 2019 Allowance for Unforeseen Items is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  February 21, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval for an exemption of the temporary restriction on load additions in Labrador East, pursuant to its Rules and Regulations.
  Decision:  
 
  1. An exemption to the temporary restriction on load additions in Labrador East, pursuant to Regulation 17, to allow for the service connection requested by Colby 2000 Ltd in Happy Valley-Goose Bay is approved. 
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  March 4, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro approving its 2018 Capital Budget Application; and the proposed Muskrat Falls to Happy Valley-Goose Bay Interconnection project which was deferred pursuant to Order No. P.U. 43(2017) and Order No. P.U. 9(2018).
  Decision:  
 
  1. The proposed capital expenditures for the Muskrat Falls to Happy Valley-Goose Bay Interconnection project, in the amount of $12,586,400 in 2019 and $7,392,100 in 2020, are approved.
  2. Intervenors may file a claim for costs for the consideration of the Board within 30 days of this Order.
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  March 5, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro’s for approval of a regulation to restrict load additions in Labrador East and Order Nos. P.U. 32(2018) and P.U. 36(2018); and an application for costs by the communities of Sheshatshiu, Happy Valley-Goose Bay, Wabush and Labrador City.
  Decision:  
 
  1. The costs of the Labrador Interconnected Group are fixed at $7,500.00, exclusive of HST.
  2. Hydro shall, within thirty days, pay costs to the Labrador Interconnected Group in the amount of $7,500.00.
  Date Issued:  
  March 5, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. to reduce service from three-phase to single-phase on a section of distribution line on the Avalon Peninsula, pursuant to section 38 of the Act.
  Decision:  
 
  1. Pursuant to section 38 of the Act, Newfoundland Power’s request to reduce a 14.0 kilometer section of distribution feeder running between the Trepassey Substation and the former Cape Race Loran - C transmitter site from three-phase to single-phase; and to dismantle 2.0 kilometers of the distribution line is approved.
  2. Newfoundland Power shall pay all costs and expenses of the Board related to this application.
  Date Issued:  
  March 19, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. to remove a section of distribution line from service on the Burin Peninsula, pursuant to section 38 of the Act.
  Decision:  
 
  1. Pursuant to section 38 of the Act, the removal of the deteriorated section of BLA-01 from service is approved.
  2. Newfoundland Power shall pay all costs and expenses of the Board related to this application.
  Date Issued:  
  March 19, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for approval of the balance in the Weather Normalization Reserve as of December 31, 2018 pursuant to sections 69(3) and 78 of the Act.
  Decision:  
 
  1. Newfoundland Power’s Weather Normalization Reserve of a negative balance of $1,517,324 as of December 31, 2018 is approved.
  2. Newfoundland Power shall pay all costs and expenses of the Board in connection with this Application.
  Date Issued:  
  April 8, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for a line extension to serve customers in the cottage area known as Island Pond, near the Town of Colinet, pursuant to section 41 of the Act.
  Decision:  
 
  1. The Non-Refundable Contribution in Aid of Construction of twelve thousand five hundred thirty dollars and fifty-three cents ($12,530.53), excluding HST, to provide single-phase service to customers located in the cottage area known as Island Pond, near the Town of Colinet, is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  April 9, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  An application by Newfoundland and Labrador Hydro for approval of a change in rates to be charged to its Island Interconnected and Isolated Rural customers.
  Decision:  
 
  1. The rates proposed by Hydro to be effective for all electrical consumption on or after March 1, 2019 for its Island Interconnected customers (Rate Classes 2.1 and 4.1) and Isolated Rural customers (Rate Class 4.1D), as set out in Schedule A to this Order, are approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  May 3, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  A general rate application filed by Newfoundland and Labrador Hydro on July 28, 2017.
  Decision:  
 

SETTLEMENT AGREEMENTS

  1. The proposals set out in the Settlement Agreement, the Supplemental Settlement Agreement and the Labrador Settlement Agreement are accepted and shall be incorporated into the revised proposals to be filed as a result of this Decision and Order.

COST OF CAPITAL AND RETURN ON EQUITY

  1. The return on equity to be used in calculating the allowed rate of return on rate base for 2018 and 2019 for the purpose of calculating the 2018 and 2019 revenue deficiencies and for setting rates as of July 1, 2019 shall be 8.5%, with a common equity component in the capital structure not to exceed 45%.
  2. Hydro’s proposed automatic adjustment mechanism for its target return on equity to reflect any changes to Newfoundland Power’s approved target return on equity for rate setting is approved.
  3. Hydro’s proposed definition of the Return on Equity Rate Change Deferral Account is accepted and shall be filed for the approval of the Board.

RATE BASE AND RETURN ON RATE BASE

  1. Hydro shall file a revised rate base for 2017 and a revised forecast average rate base for 2018 and 2019, incorporating the findings of the Board in this Decision and Order.
  2. Hydro’s proposed excess earnings account definition to reflect a range of rate of return on rate base of ±20 basis points is accepted and shall be filed for the approval of the Board.

REVENUE REQUIREMENT

  1. Hydro shall file, for the approval of the Board, a revised revenue requirement for the 2019 test year for rate setting purposes, and a revised revenue requirement for the 2018 test year for the purpose of determining the 2018 revenue deficiency, incorporating the findings of the Board in this Decision and Order, including:
    1. a reduction of $4,000,000 in each of 2018 and 2019 related to the disallowance of operating costs;
    2. a reduction in each of 2018 and 2019 related to the disallowance of Hydro’s performance contract payments; and
    3. a reduction in each of 2018 and 2019 related to the proposed guarantee fee.

DEFERRED CHARGES AND PROPOSED DEFERRAL ACCOUNTS

  1. The balances in the Energy Supply Cost Variance Deferral Account, the Holyrood Conversion Rate Deferral Account and the Isolated Systems Supply Cost Variance Deferral Account for 2015, 2016 and 2017 are approved.
  2. Hydro’s proposed revised Energy Supply Cost Variance Deferral Account definition is accepted to be effective January 1, 2019 and shall be filed for the approval of the Board.
  3. Hydro’s proposal to defer external regulatory costs related to this Application and the Cost of Service and Rate Design Methodology Review of up to $1.7 million over a three-year period, commencing with the 2018 test year, is accepted.
  4. Hydro shall file a proposal in relation to the disposition of the balance in the account related to specifically assigned charges approved in Order No. P.U. 7(2018).
  5. Hydro shall file a proposal in relation to the disposition of the balance in the 2018 Cost Deferral Account.

COST OF SERVICE

  1. Hydro shall file updated cost of service studies for the 2018 and 2019 test years, incorporating the findings of the Board in this Decision and Order.

RATES, RULES AND REGULATIONS

  1. Hydro shall file, for the approval of the Board, a revised Schedule of Rates, Rules and Regulations and revised RSP Rules, incorporating the findings of the Board in this Decision and Order.

REVENUE DEFICIENCIES

  1. Hydro shall file a revised calculation of the 2018 and 2019 revenue deficiencies setting out revised calculations of the revenue requirement, rate base and rate of return on rate for each year, incorporating the findings of the Board in this Decision and Order.

OTHER MATTERS

  1. As part of its revised filing Hydro shall file:
    1. an update on the implementation of its Account Management Framework by September 30, 2019; and
    2. an update on the results of its tracking of actual operating and maintenance costs related to specifically assigned assets as part of its next general rate application.
  2. Hydro shall file its next general rate application no later than September 30, 2020 for rates based on a 2021 test year.

HEARING COSTS

  1. Hydro shall pay the expenses of the Board associated with this matter, including the expenses of the Consumer Advocate incurred by the Board pursuant to Section 117 of the Act.
  2. The Industrial Customer Group will be awarded costs, in an amount to be determined by the Board.
  3. Leave is granted to intervenors to apply for an award of costs within 30 days of the Order of the Board establishing final rates in this matter.
  Date Issued:  
  May 7, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  An application by Newfoundland and Labrador Hydro to remove a section of distribution line from service on the Avalon Peninsula, pursuant to section 38 of the Act.
  Decision:  
 
  1. The removal of the TL 266 wood pole construction transmission line from service is approved.
  2. Hydro shall pay all costs and expenses of the Board related to this application.
  Date Issued:  
  May 22, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  An application by Newfoundland and Labrador Hydro for approval of a regulation to restrict load additions in Labrador East and Order No. P.U. 32(2018) and Order No. P.U. 36(2018); and an application for approval to extend the temporary restriction on load additions in Labrador East.
  Decision:  
 
  1. The proposed amended Regulation 17, as set out in Schedule A to this Order, is approved.
  2. Hydro shall pay the expenses of the Board incurred in connection with this matter.
  Date Issued:  
  May 23, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  An application by Newfoundland and Labrador Hydro approving its 2018 Capital Budget Application; and the proposed Muskrat Falls to Happy Valley-Goose Bay Interconnection project which was deferred pursuant to Order Nos. P.U. 43(2017) and P.U. 9(2018) and approved in Order No. P.U. 9(2019); and an application for costs by the communities of Sheshatshiu, Happy Valley-Goose Bay, Wabush and Labrador City.
  Decision:  
 
  1. The costs of the Labrador Interconnected Group in relation to the Muskrat Falls to Happy Valley-Goose Bay Interconnection project are fixed at $15,000.00, exclusive of HST.
  2. Hydro shall, within thirty days, pay costs to the Labrador Interconnected Group in the amount of $15,000.00.
  Date Issued:  
  May 29, 2019  
     
     
 
  Application:  
  An application Timothy W. Buckle requesting a stated case pursuant to section 101 of the Act.
  Decision:  
 
  1. The request to state a case to the Court of Appeal pursuant to section 101 of the Public Utilities Act for a determination as to whether 61839 Newfoundland and Labrador Limited is a public utility is dismissed.
  Date Issued:  
  May 29, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  An application by Newfoundland and Labrador Hydro for recovery of the 2018 balances in (i) the Isolated Systems Supply Cost Variance Deferral Account, (ii) the Energy Supply Cost Variance Deferral Account, and (iii) the Holyrood Conversion Rate Deferral Account, pursuant to sections 70(1) and 80 of the Act.
  Decision:  
 
  1. The balances in the Energy Supply Cost Variance Deferral Account, the Holyrood Conversion Rate Deferral Account and the Isolated Systems Supply Cost Variance Deferral Account for 2018 are approved.
  2. Hydro’s proposals for the allocation by customer class of the balances in the Energy Supply Cost Variance Deferral Account, the Holyrood Conversion Rate Deferral Account and the Isolated Systems Supply Cost Variance Deferral Account for 2018 are approved.
  3. Hydro’s proposal to recover the amounts allocated to Newfoundland Power and the Island Industrial customers through a transfer of balances to the respective RSP Current Plans effective October 1, 2019 is approved.
  Date Issued:  
  June 6, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  An application by Newfoundland and Labrador Hydro for approval of a capital expenditure to complete a Hinds Lake Unit Overhaul and Level II Condition Assessments at Bay d’Espoir Penstock 4, Granite Canal Penstock and Hinds Lake Penstock pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditures in the amount of $259,500 to complete the Hinds Lake Unit major overahaul and $414,300 for Level II Condition Assessments for Bay d’Espoir Penstock 4, Granite Canal Penstock and Hinds Lake Penstock are approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  June 6, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  A general rate application by Newfoundland and Labrador Hydro to establish customer electricity rates for 2018 and 2019; and the proposed test year costs related to the Business Systems Transformation Program.
  Decision:  
 
  1. The proposed Business Systems Revenue Requirement Deferral Account, as set out in Schedule A to this Order, is approved.
  2. Hydro shall pay the expenses of the Board incurred in connection with this matter.
  Date Issued:  
  June 12, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for the approval of a change in the CDM Cost Recovery Adjustment to be charged to Island Industrial customers effective July 1, 2019.
  Decision:  
 
  1. The proposed Island Industrial customer rates, to be effective on all electrical consumption on and after July 1, 2019, as set out in Schedule A to this Order, are approved on an interim basis.
  2. Hydro shall pay the expenses of the Board incurred in connection with this matter.
  Date Issued:  
  June 17, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador to delay implementation of its July 1, 2019 Utility Rate Stabilization Plan and Conservation and Demand Management rate changes.
  Decision:  
 
  1. The delay in implementation of Hydro’s July 1, 2019 Utility RSP and CDM rate changes and the continuation of the Utility Customer RSP Fuel Rider of 0.423 cents per kWh, the RSP Current Plan Rider of (0.296) cents per kWh, and the Utility Customer CDM Rider of 0.022 cents per kWh until such time as the implementation of final rates resulting from Hydro’s 2017 general rate application is approved.
  2. The delay in implementation of Newfoundland Power’s July 1, 2019 RSA/MTA Rate Adjustments and the continuation of the current Newfoundland Power customer rates until the implementation of final rates resulting from Hydro’s 2017 general rate application is approved.
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  June 25, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for a single-phase extension to Skibbereen Road, pursuant to section 41 of the Act.
  Decision:  
 
  1. The Refundable Contribution in Aid of Construction of eight thousand eight hundred fifteen dollars and twenty five cents ($8,815.25), excluding HST, to apply to Domestic customers located in the Skibbereen Road Residential Development located in the Town of Holyrood, is approved.
  2. Newfoundland Power Inc. shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  July 2, 2019  
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for an exemption to Regulation 17 of its rules and regulations.
  Decision:  
 
  1. An exemption to Regulation 17 to allow for both temporary and permanent service to the Labrador Wellness Centre is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application
  Date Issued:  
  July 26, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of a capital expenditure for refurbishment of the Hardwoods gas turbine alternator exciter end bearing and the purchase of an exciter bearing liner and thrust pads pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $225,500 for refurbishment of the Hardwoods gas turbine alternator exciter end bearing and the purchase of an exciter bearing liner and thrust pads is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  August 26, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval to defer certain costs related to the Reliability and Resource Adequacy Study pursuant to sections 58 and 80 of the Act.
  Decision:  
 
  1. The proposed deferral account for costs associated with the Reliability and Resource Adequacy Study proceeding, as set out in Schedule A, is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  September 6, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  A general rate application filed by Newfoundland and Labrador Hydro on July 28, 2017 to establish customer electricity rates for 2018 and 2019; and Order No. P.U. 16(2019) relating to the 2017 general rate application; and an application filed by Newfoundland and Labrador Hydro on July 11, 2019 to reflect the findings of the Board in Order No. P.U. 16(2019) and requesting approval of, among other things, changes to its rates, rules and regulations for the supply of power and energy to its customers to be effective October 1, 2019.
  Decision:  
 

Revenue Requirement

  1. The forecast average rate base for 2017 of $2,093,796,000 is accepted.
  2. For the purpose of calculating the 2018 revenue deficiency the following are approved:
    1. a 2018 test year revenue requirement of $572,214,000;
    2. a 2018 forecast average rate base of $2,249,910,000; and
    3. a rate of return on average rate base for 2018 of 5.50% in a range of 5.30% to 5.70%.
  3. For 2019 rate setting purposes the following are approved:
    1. a 2019 test year revenue requirement of $643,041,000;
    2. a 2019 forecast average rate base of $2,317,270,000; and
    3. a rate of return on average rate base for 2019 of 5.43% in a range of 5.23% to 5.63%.

Revenue Deficiencies/Excesses and Cost Deferrals

  1. Hydro's proposal to debit the Utility Customer RSP Current Plan in the amount of $48,401,120, effective March 31, 2019, and to debit the Island Industrial Customer RSP Current Plan in the amount of $4,754,971, effective March 31, 2019, to offset the 2019 test year revenue deficiency is approved.
  2. Hydro's proposal to debit the Utility Customer RSP Current Plan in the amount of $9,380,000, effective September 30, 2019, representing the forecast Utility RSP Fuel Rider billings for the period April 2019 to September 2019 inclusive, and to apply this amount to reduce the 2019 test year revenue deficiency for Newfoundland Power, is approved.
  3. Hydro’s proposal to transfer a $36,310,729 credit balance in the RSP Hydraulic Variation component allocated to Newfoundland Power as of March 31, 2019 to reduce the deferred supply costs to be recovered through the 2017 GRA Cost Recovery Rider for Newfoundland Power is approved.
  4. Hydro’s proposal to utilize $566,250 of the $3,563,607 credit balance in the RSP Hydraulic Variation component allocated to Island Industrial customers as of March 31, 2019 to dispose of the projected outstanding amount in the Island Industrial Customer RSP Current Plan balance as at September 30, 2019 and to transfer the remaining $2,997,357 credit balance to reduce the deferred supply costs to be recovered through the 2017 GRA Cost Recovery Rider for Island Industrial customers is approved.
  5. Hydro’s proposal with respect to the conclusion of the Specifically Assigned Revenue Deferral Account, effective September 30, 2019, including the proposed October 2019 billing adjustments for Island Industrial customers totaling $602,746, is approved.
  6. Hydro’s proposal to restate its property, plant and equipment based upon the new depreciation methodology, effective January 1, 2018, with the corresponding adjustment to effect the conclusion of the 2018 Depreciation Cost Deferral Account is approved.
  7. Hydro’s proposal to credit Labrador Interconnected customers the excess revenues of $1,558,578 as a billing credit in February 2020 based on the percentage of actual customer billings for the period January 1, 2018 to September 30, 2019 is approved.
  8. Hydro’s proposal to credit Labrador Industrial Transmission customers the excess revenues of $295,937 through a one-time adjustment on the October 2019 billing based on the firm demand billings for the period January 1, 2018 to September 30, 2019 is approved.
  9. Hydro’s proposal to collect the $74,243 of the revenue deficiency from Government Diesel customers through customer rates is approved.

Rates

  1. The following riders and adjustments for Hydro’s Utility customer rates are approved to be effective October 1, 2019:
    1. elimination of the existing RSP Fuel Rider of 0.423 ¢ per kWh;
    2. RSP Current Plan Adjustment of (0.188) ¢ per kWh;
    3. Conservation and Demand Management Cost Recovery Adjustment of 0.026 ¢ per kWh; and
    4. 2017 GRA Cost Recovery Rider of $892,219 per month to conclude May 31, 2021.
  2. The following riders and adjustments for Hydro’s Island Industrial customer rates are approved to be effective October 1, 2019:
    1. elimination of the RSP Current Plan Adjustment of 0.302 ¢ per kWh;
    2. Conservation and Demand Management Cost Recovery Adjustment of 0.011 ¢ per kWh; and
    3. 2017 GRA Cost Recovery Rider of 0.042 ¢ per kWh to conclude May 31, 2021.
  3. The rates to be charged by Hydro to Newfoundland Power, Island Industrial customers, Government Departments in Hydro’s diesel service areas, Labrador Interconnected customers and Labrador Industrial Transmission customers, as set out in Schedule A to this Order, to be effective for electrical consumption on or after October 1, 2019, are approved.
  4. The Rules and Regulations for service to Hydro’s Rural customers, as set out in Schedule B to this Order, to be effective as of October 1, 2019, are approved.
  5. The Rate Stabilization Plan Rules, as set out in Schedule C to this Order, to be effective as of October 1, 2019, are approved.
  6. The following interim rates are approved on a final basis:
    1. the interim Utility customer rates approved in Order No. P.U 15(2018); and
    2. the interim Island Industrial customer rates approved in Order Nos. P.U. 7(2018), P.U. 48(2018) and P.U. 4(2019).

Account Definitions

  1. The proposed account language for the i) Revised Energy Supply Cost Variance Deferral Account, ii) the Excess Earnings Account, iii) the Return on Equity Rate Change Deferral Account and the iv) Specifically Assigned Revenue Deferral Account, as set out in Schedule D to this Order to be effective as of October, 2019, is approved.

Costs

  1. Hydro shall pay all costs and expenses of the Board, including those of the Consumer Advocate, arising from this Application.
  Date Issued:  
  September 11, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. pursuant to sections 70, 71 and 80 of the Act and Order Nos. P.U. 16(2019), P.U. 25(2019) and P.U. 30(2019) for approval of: (i) revisions to the rates, rules and regulations to permit recovery of additional costs payable to Newfoundland and Labrador Hydro for the supply of power as a result of a revised Utility rate effective October 1, 2019; (ii) revised rate stabilization and municipal tax adjustments for the period October 1, 2019 to June 30, 2020; and (iii) revisions to Newfoundland Power’s Rate Stabilization Clause.
  Decision:  
 
  1. The Rate Stabilization Adjustment of 0.043 cents per kWh and the Municipal Tax Adjustment factor of 1.02398 for the period October 1, 2019 to June 30, 2020 is approved.
  2. The Schedule of Rates, Rules and Regulations, including the revised Rate Stabilization Clause, as set out in Schedule A to this Order, to be effective on all electrical consumption on and after October 1, 2019, is approved.
  3. Newfoundland Power shall pay the expenses of the Board arising from this Application.
  Date Issued:  
  September 25, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of a change in rates for the supply of power and energy to Hydro Rural customers who are subject to automatic rate changes based on the rates approved for customers of Newfoundland Power Inc.
  Decision:  
 
  1. The Schedule of Rates, Tolls and Charges setting out the rates proposed by Hydro for its Island Interconnected and L’Anse au Loup customers (Rates 1.1, 1.1S, 1.3, 2.1, 2.3, 2.4 and 4.1) and Isolated Rural customers, excluding government departments (Rates 1.2D, 1.2DS, 2.1D, 2.2D and 4.1D), to be effective for all electrical consumption on or after October 1, 2019, as set out in Schedule A to this Order, is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  September 25, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for of a capital expenditure for refurbishment and upgrade of a gas generator to be used as a spare for the Hardwoods and Stephenville Gas Turbine facilities pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $393,500 for refurbishment and upgrade of Olympus C Gas Generator – Serial Number 202204 is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  October 15, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro Hydro for approval to expand the restriction on load additions in Labrador East approved in Order Nos. P.U. 32(2018), P.U. 36(2018) and P.U. 18(2019).
  Decision:  
 
  1. The proposed amended Regulation 17, as set out in Schedule A to this Order, is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  October 29, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of a Firm Energy Power Purchase Agreement with Corner Brook Pulp and Paper Limited pursuant to sections 70(1), 71 and 80 of the Act.
  Decision:  
 
  1. The proposed Firm Energy Power Purchase Agreement between Hydro and Corner Brook Pulp and Paper Limited is approved.
  2. Hydro shall file for the approval of the Board a proposal for an account to defer the savings associated with the Firm Energy Power Purchase Agreement.
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  November 1, 2019  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for approval of a capital expenditure for the relocation of a portion of a transmission line for Cottle’s Island Lumber Company Limited pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $309,619 for the relocation of a portion of a transmission line is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  November 7, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of revisions to its Cost of Service Methodology for use in the determination of test year class revenue requirements reflecting the inclusion of the Muskrat Falls Project costs upon full commissioning, pursuant to section 3 of the EPCA.
  Decision:  
 
  1. The recommendations in the Settlement Agreement, as set out in Schedule A, are accepted for use in the preparation of the cost of service study to be filed in Hydro’s general rate application upon the commissioning of the Muskrat Falls Project.
  2. Hydro shall pay the expenses of the Board associated with this matter, including the expenses of the Consumer Advocate in incurred by the Board, pursuant to section 117 of the Act.
  3. Leave is granted to the intervenors to apply for an award of costs within 30 days of the date of this Order.
  Date Issued:  
  November 20, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro approved in Order No. P.U. 26(2018) relating to the sale of the Corner Brook frequency converter by Newfoundland and Labrador Hydro to Corner Brook Pulp and Paper Limited; and the recovery of retirement costs associated with the sale of the frequency converter to Corner Brook Pulp and Paper Limited, in the amount of approximately $4.25 million.
  Decision:  
 
  1. The loss on the sale of the frequency converter to its customer, Corner Brook Pulp and Paper Limited, of approximately $4.25 million shall not be recovered from Hydro’s other customers.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 9, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of a capital expenditure for the construction of a line extension and the installation of power usage monitoring and control equipment at the BlockLab site pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $244,000 for the construction of a line extension and the installation of power usage monitoring and control equipment at the BlockLab site is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 17, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of its 2017 General Rate Application; and Order Nos. P.U. 16(2019) and P.U. 30(2019) related to Newfoundland and Labrador Hydro’s 2017 General Rate Application; and an application for costs by Corner Brook Pulp and Paper, NARL Refining Limited Partnership and Vale Newfoundland and Labrador Limited.
  Decision:  
 
  1. The costs of the Industrial Customer Group are fixed at $400,000.00, exclusive of HST.
  2. Hydro shall, within thirty days, pay to the Industrial Customer Group the costs fixed in this order.
  3. Hydro shall pay all the expenses of the Board arising from this application.
  Date Issued:  
  December 19, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of its 2017 General Rate Application; and Order Nos. P.U. 16(2019) and P.U. 30(2019) related to Newfoundland and Labrador Hydro’s 2017 General Rate Application; and an application for costs by the communities of Sheshatshui, Happy Valley-Goose Bay, Wabush and Labrador City.
  Decision:  
 
  1. The costs of the Labrador Interconnected Group are fixed at $50,000.00, exclusive of HST.
  2. Hydro shall, within thirty days, pay to the Labrador Interconnected Group the costs fixed in this order.
  3. Hydro shall pay all the expenses of the Board arising from this Cost Application.
  Date Issued:  
  December 19, 2019  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of an interruptible load service agreement with Labrador Lynx Limited.
  Decision:  
 
  1. The proposed Interruptible Load Service Agreement to be effective from December 1, 2019 through to the earlier of March 31, 2020 or the in-service date of Transmission Line L1303 is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 20, 2019  
     
     
     
     


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