SUMMARY OF ORDERS OF THE BOARD ISSUED DURING 1998-1999

UNDER

THE PUBLIC UTILITIES ACT

CHAPTER P - 47, 1990

Name of Applicant

Application

Decision

Order No.

Newfoundland Light & Power Co. Limited

Application for written consent to remove certain diesel generating plants from service pursuant to Section 38 of the Act.

Approval granted, pursuant to Section 38 of the Act, to the removal from service of the Plants in accordance with the following schedule:

a) the Gander Plant forthwith;

b) the Aguathuna Plant forthwith;

c) the Sale Pond Plant forthwith; and

d) the Port aux Basques Plant as soon as is practical after the commissioning of the Rose Blanche Brook hydroelectric plant; and

 

a) Newfoundland Light & Power Co. Limited provide the Board with documentation of environmental compliance from the Provincial Department of Government Services and Lands and/or the Department of Environment and Labour for all plants within 90 days of their de-commissioning; and further that:

 

b) The diesel generating unit # 10 at Port aux Basques, as well as the portable diesels currently stationed at the Grand Bay Substation, remain operational and maintained at their respective suites and that the portable units be relocated to other locations only in the event of an emergency, as a result of a meeting of the Board.

P.U.1 (1998-99)

Newfoundland Light & Power Co. Limited

Application for approval of the balance of the Weather Normalization Reserve as of December 31, 1997 pursuant to Sections 69(3) and 78 of the Act.

The Applicant's Weather Normalization Reserve of a Negative Balance of $3,706,353 as at December 31, 1997, is approved.

P.U. 2 (1998-99)

Newfoundland and Labrador Hydro

Application for approval to issue Debenture Series AA in aggregate not to exceed $200,000,000 on or before December 31, 1998, pursuant to Section 91 of the Public Utilities Act.

Approval granted, as requested, as a result of a public hearing.

P.U. 3 (1998-99)

On its own Motion for the purpose of considering Newfoundland Light & Power Co. Limited's Current Rate of Return and Capital Structure.

Application by Abitibi Consolidated Inc., (Abitibi) for an Order awarding costs to Abitibi pursuant to Section 90 of the Act.

In accordance with Section 90 of the Act, the issue of costs of Abitibi Consolidated Inc., Intervenor, will be considered by the Board at the conclusion of the Hearing, as a result of a meeting of the Board.

P.U. 4 (1998-99)

Newfoundland and Labrador Hydro

Application for approval of the Lease of Certain Computer Equipment, pursuant to Section 41 of the Act.

Approval granted, for the Applicant's proposed Lease of Certain Computer Upgrade Equipment for the annual amount of $24,900 and for the term of 48 months, as a result of a meeting of the Board.

P.U. 5 (1998-99)

Newfoundland Light & Power Co. Limited

Application for approval of Contribution in Aid of Construction (CIAC) on Gully Pond Road, Witless Bay, NF.

Approval granted, as requested, as a result of a meeting of the Board.

P.U. 6 (1998-99)

Newfoundland and Labrador Hydro

 Application for approval of the Lease of an Apartment in Happy Valley-Goose Bay.

 Approval granted, as requested, as a result of a meeting of the Board.

 P.U. 7 (1998-99)

Newfoundland and Labrador Hydro

 Application for approval of a Contribution in Aid of Construction (CIAC) for the supply of single phase electrical service to four cottages at Woodford's Arm, Near Port Anson, Newfoundland.

 Approval granted, as requested, as a result of a meeting of the Board.

 P.U. 8 (1998-99)

On the Board's Own Initiative

 Re Board Order No. P.U. 3 (1995-96), requiring that Newfoundland Light & Power Co. Limited (Newfoundland Power) file annually with the Board certain information indicating annual progress of an Early Retirement Program.

 Newfoundland Power is relieved of the requirement, as contained in Order P.U. 3 (1995-96), that it continue to file annually with the Board information indicating the annual progress of the 1993 Program (at a meeting of the Board).

 P.U. 9 (1998-99)

Newfoundland Light & Power Co. Limited

 Application for approval of Rate Stabilization and Municipal Tax Adjustments to be applied to the Rates of the Applicant for the period July 1, 1998 to June 30, 1999 pursuant to Section 71 of the Act.

 Approval granted, as requested, as a result of a meeting of the Board.

 P. U. 10 (1998-99)

Newfoundland Light & Power Co. Limited

 Application for approval of (i) a contribution in aid of construction for a line extension to serve the Town of Musgrave Harbour (the Customer) pursuant to Section 41(5) of the Act; and (ii) the Applicant's 1998 Capital Expenditures in relation to the construction of the line pursuant to Section 41(3) of the Act.

 Approval granted, as requested, as a result of a meeting of the Board.

 P. U. 11 (1998-99)

Newfoundland and Labrador Hydro

 Application for approval of the replacement of Southcoast Fuel Storage Tanks, pursuant to Section 41(3) of the Act.

 Approval granted, as requested, as a result of a meeting of the Board.

 P.U. 12 (1998-99)

Newfoundland and Labrador Hydro

 Application for approval of the replacement of diesel generators at Hopedale and Nain, pursuant to Section 41(3) of the Act.

 Approval granted, as requested, as a result of a meeting of the Board.

 P.U. 13 (1998-99)

Newfoundland and Labrador Hydro

 Application for approval of the lease of certain computer hardware and software upgrades, pursuant to Section 41 of the Act.

 Approval granted, as requested, as a result of a meeting of the Board.

 P.U. 14 (1998-99)

Newfoundland Light & Power Co. Limited

 Application for approval of a contribution in aid of construction for a line extension to serve Clovelly Golf Course Inc. pursuant to section 41(5) of the Act

 Approval granted, as requested, as a result of a meeting of the Board.

 P.U. 15 (1998-99)

On the Board's Own Initiative

 Re: Public Hearing Called by the Board for the purpose of considering:

(i) the appropriate capital structure of NLP;

(ii) the appropriate rate of return on common equity and rate base for NLP;

(iii) the appropriate frequency of a full cost of capital review and whether certain financial market benchmark parameters should be put in place to trigger a hearing on the matter; and

(iv) whether an automatic annual adjustment mechanism for resetting the rate of return in years subsequent to a test year would be appropriate in order to reflect changes in financial market benchmarks.

 Inter Alia, Test Year (1) the 1997 test year financial projections submitted to the Board at the 1996 hearing, as adjusted by P.U. 7 (1996-97) and by P.U. 8 (1996-97), will be used to calculate adjustments in rates, tolls and charges, on an interim basis, for 1998;(2)Capital Structure (2) In calculating 1998 interim rates, tolls and charges, utilizing the 1997 test year data, the Board will deem a common equity ratio of 45%; Common equity above this level will be treated as preferred equity; The return on preferred equity for the purpose of setting rates will be applied to the average value of preferred equity for the 1997 test year and the value of average common equity in excess of 45%.

 P.U. 16 (1998-99)

Newfoundland Light & Power Co. Limited

Application for approval of capital expenditure in excess of $50,000 pursuant to Section 41(3) of the Act.

Approval granted, as requested, as a result of a meeting of the Board.

P.U. 17 (1998-99)

Newfoundland Light & Power Co. Limited

Application for approval of a Contribution in Aid of Construction.

Approval granted, as requested, as a result of a meeting of the Board.

P.U. 18 (1998-99)

Newfoundland Light & Power Co. Limited

Application for approval of a Contribution in Aid of Construction at Broad Lake, Bellevue, Newfoundland.

Approval granted, as requested, as a result of a meeting of the Board.

P.U. 19 (1998-99)

Newfoundland Light & Power Co. Limited

Application for approval of a Contribution in Aid of Construction.

Approval granted, as requested, as a result of a meeting of the Board.

P.U. 20 (1998-99)

On the Board's Own Initiative

 Submission for Interim Approval of Revised Schedule of Rates, Tolls and Charges pursuant to Order No: P.U. 16 (1998-99).

 Approval granted, as requested, effective September 1, 1998, inter alia.

 P. U. 21 (1998-99)

Newfoundland Light & Power Co. Limited

 Application for approval to waive Regulation 7(b) of the Company's Rules and Regulations in relation to the provision of a temporary service for the 1999 Canada Winter Games Host Society pursuant to Section 71 of the Act.

 Approval granted, as requested, pursuant to Section 71 of the Act to allow a temporary three-phase connection for the 1999 Canada Winter Games Host Committee for the purpose of providing service to ten bunkhouses comprising Athletes' Village, as a result of a meeting of the Board.

 P. U. 22 (1998-99)

Newfoundland and Labrador Hydro

 Application for approval of the lease of office space in Labrador City, pursuant to Section 41 of the Act.

 Approval granted, as requested, for the said office space for the month amount of $1200.00 for the remainder of the 1998 calendar year, as a result of a meeting of the Board

 P. U. 23 (1998-99)

Newfoundland and Labrador Hydro

Application for approval of the lease of a dwelling house in Rencontre East, pursuant to Section 41 of the Act

 

 

 Approval granted, as requested, for the proposed five-year lease for the said dwelling house for the annual amount of $7,200.00, as a result of a meeting of the Board.

 P. U. 24 (1998-99)

Newfoundland Light & Power Co. Limited

 Application for approval of a Contribution in Aid of Construction.

 Approval granted, as requested, as a result of a meeting of the Board.

 P. U. 25 (1998-99)

Newfoundland and Labrador Hydro

 Application for approval of the Replacement of Poles and Attachments on the Main Brook System pursuant to Section 41(3) of the Act.

 Approval granted, as requested, as a result of a meeting of the Board.

 P.U. 26 (1998-99)

 Consumer Advocate

 Application made Pursuant to Section 4 of the Board of Commissioners of Public Utilities Regulations, 1996 by the Consumer Advocate seeking an order of the Board for disclosure of certain information and documents which Newfoundland Power Inc., has refused to provide to the Consumer Advocate pursuant to the information requests directed to Newfoundland Power Inc. pursuant to Sections 14 and 15 of the same regulations.

 It is therefore ordered that the outstanding requests for information contained in DMB-1, DMB-5, DMB-45 and DMB-56 be disposed of Inter Alta.

 P.U. 27 (1998-99)

Newfoundland Power Inc.

Application for approval to issue Series "AI" First Mortgage Sinking Fund Bonds pursuant to Section 91 of the Act.

Approval granted, as amended, to issue Series "AI" First Mortgage Sinking fund bonds in the amount of $50,000,000 and on the general terms set out in the Amended Application subject to the following conditions: (a) The Bonds shall be issued on or before December 31, 1998; (b) The Applicant shall provide the Board an affidavit specifying the terms and conditions of the bond issue within twenty-four (24) hours (non-business days excepted) after such terms and conditions have been successfully negotiated, inter alia.

P.U. 28 (1998-99)

Newfoundland Power Inc.

Approval of (1) A Contribution in Aid of Construction for a line extension to serve International Granite Corporation (The Customer) pursuant to Section 41(5) of the Act and (2) the Applicant's 1998 Capital Expenditures in Relation to the Construction of the line pursuant to Section 41(3) of the Act.

It was ordered that pursuant to Section 4l (3) and 4l (5) of the Act, the capital expenditure in relation to the construction of line as set out in Schedule B of the application be approved, and the CIAC of forty-nine thousand, nine hundred forty-five dollars and seventy-seven cents ($49,945.77) including HST, as calculated under the Policy be approved.

P.U. 29 (1998-99)

Newfoundland Power Inc.

Approval to extend the interim approval of the curtailment credit for the curtailable service option provided for in the Applicant's schedule of rates, rules and regulations.

Pursuant to Section 75 of the Act that the curtailment credit for the Curtailable Service Option provided for in the Applicant's Rates, Rules and Regulations be maintained at $29 per kVA until further Order of the Board following a review of the Curtailable Service Option at a public hearing, as a result of a meeting of the Board.

P.U. 30 (1998-99)

Newfoundland Power Inc.

Pursuant to Section 41(3) of the Act for approval to proceed with a lease of certain additions to its property.

Pursuant to Section 41(3) of the Act approval is granted to the Applicant to proceed with the leasing and maintenance arrangement as proposed, as a result of a meeting of the Board.

P.U. 31 (1998-99)

Newfoundland & Labrador Hydro

Approval of (1) 1999 Capital Budget pursuant to Section 41(1) of the Act; (2) 1999 Capital Purchases, and construction projects in excess of $50,000 pursuant to Section 41(3)(a) of the Act; (3) its lease for 1999 in excess of $5,000 per year pursuant to Section 4l(3) (b) of the Act and (4) its estimated contributions in aid of construction for 1999 pursuant to S.4l(5) of the Act.

Approval is granted to the Applicant, as a result of a public hearing for (1) Capital Budget in the amount of $38,142,000; (2)1999 construction projects and capital purchases in excess of $50,000; (3) 1999 leases in excess of $5,000 per calendar year; (4) The Board will make a determination as to the contributions in aid of construction in 1999 when those matters are presented to the Board. (5) The proposed contingency reserve for emergency situations in the amount of $1,000,000; (6) The deferral of the Engineering Study into the upgrading of TL202 and TL206; (7) The deferral to 2000 of Transmission Line Upgrades caused by disrupted deliveries of steel towers due to the Central Canada ice storm; (8) The Applicant will present quarterly reports to the Board on its 1999 Capital expenditures within sixty (60) days from the end of each quarter; (9) The Applicant will report semi-annually commencing June 30, 1999 on the status of transmission line upgrade deferrals and the expected date on which the cost-benefit report will be filed; (10) The Applicant will include a statement of changes in financial positions with the 2000 Capital Budget application, and all subsequent Capital Budget applications; and (11) All costs and expenses of the Board incurred with the application shall be borne by the Applicant.

P.U. 32 (1998-99)

Newfoundland Power Inc.

 Approval of a contribution in aid of construction for a line extension.

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

 P.U. 33 (1998-99)

Deer Lake Power Company Limited

Petition for approval, pursuant to Section 48 of the Public Utilities Act, of the sale, assignment or transfer of the whole of the undertaking of Deer Lake Power Company Limited by amalgamation of itself and Corner Brook Pulp and Paper Limited, December 1998.

The Board Ordered that a hearing to inquire into the approval of an application be held in the Boardís Hearings Room on Wednesday, December 23rd, 1998 at 10:30 A.M. and that the Board dispense with the period of notice provided in section 7(1)(b) of the Boardís Regulations and substitute therefore, that notice shall be deemed to have been given by publication of notice of this hearing in the St. Johnís Telegram and the Corner Brook Western Star on December 18th and 19th, 1998, respectively.

P.U. 34 (1998-99)

Deer Lake Power Company Limited

Approval of Sale, Assignment or transfer of the whole of the undertaking of Deer Lake Power Company Limited by amalgamation of itself and Corner Brook Pulp and Paper Limited.

Pursuant to Section 48 of the Act, the application is hereby approved and the Applicant is hereby authorized to sell, assign or transfer the whole of its undertaking pursuant to an amalgamation of the Applicant and Corner Brook Pulp and Paper Limited (CBPP). As provided in Paragraph 294(1)(c) of the Corporation Act CBPP the amalgamated corporation continues to be liable for the obligation of each of the applicant and CBPP. The expenses of the Board incurred in connection with the application shall be borne by the Applicant.

P.U. 35 (1998-99)

Newfoundland Power Inc.

Hearing with regard to various matters affecting, among other things, NPís current rates, tolls and charges and rate of return on rate base pursuant to the Public Utilities Act.

1. CREDIT COLLECTION PRACTICES AND POLICY-NP will continue to utilize the current redirect program, involving the Department of Human Resources and Employment, the customer, and the company, to try to mitigate the effects on consumers of accounts that have fallen into arrears. The Board will continue to receive complaints and to monitor them in the interest of consumers; inter alia.

P.U. 36 (1998-99)

Newfoundland Power Inc

Submissions pursuant to Order No. P.U. 36 (1998-99), relative to (a) a revised schedule of rates, tolls and charges, and (b) revised Rules and Regulations which comply with the Boardís findings and which will become effective February 1, 1999.

Approval is granted to:

1. The Schedule of Rates, Tolls and Charges attached as Schedule "A", effective February 1, 1999.

2. The Rules and Regulations attached as Schedule "B", effective February 1, 1999.

3. The calculation of the amount of $178,000 after-tax as that portion of the amount of $954,000 described at Page 98, paragraph 9(b) of Order No. P.U. 36(1998-99) which will be recovered in 1999 and each successive year as set out in Order No. P.U. 36 (1998-99) during the years 2000 to 2003.

4. The revised definition of the Excess Revenue Account and the definition of the Unbilled Revenue Increase Reserve for inclusion in NPís System of Accounts attached hereto and marked Schedule "C" and Schedule "D", effective February 1, 1999.

P.U. 37 (1998-99)

Newfoundland Power Inc

Application for approval of a contribution in aid of construction for a line extension to serve seasonal customers pursuant to Section 41(5) of the Public Utilities Act.

Approval granted pursuant to Section 41(5) of the Act for a CIAC of $4,552.08, including HST, as calculated under the CIAC Policy, as a result of a meeting of the Board.

P.U. 38 (1998-99)

Newfoundland Power Inc.

Application for approval of revisions to the contribution in aid of construction (CIAC) policy approved by Order No. P.U. 7 (1997-98).

1.(a) Appendix A, Schedule "A", of the Contribution in Aid of Construction Policy: Distribution Line Extension to Residential and Seasonal Residential customers, September 1997, approved by Order No. P.U. 7 (1997-98) is rescinded and replaced by Appendix A, Schedule "A", Page 12 of 12 Revised January 28, 1999; (b)Appendices A,B,C of Schedule "B", Pages 13, 14, and 15 of 15 Revised of the Contribution in Aid of Construction Policy: Distributon Lines Extensions and Upgrades to General Service Customers, September 1997, approved by Order No. P.U. 7 (1997-98) are rescinded and replaced by Appendices A,B,C, December 11, 1998, Schedule "B", Pages 13, 14, 15 of 15 Revised January 28, 1999;

2.The revised unit cost factors for General Service Customers, Schedule "B", Page 16 of 16, Original, January 28, 1999 are approved subject to the report of the Boardís Financial Consultants, Grant Thornton, in the upcoming CIAC review;

3.The revised cost factors submitted with the application dated Dec. 15, 1998 and approved above, are to be used in the calculation of the CIACís with effect from December 11, 1998, and where advantageous to customers of the Newfoundland Power, on all CIACís quoted but unpaid as of December 11, 1998; and

4.Newfoundland Power submit a revised CIAC Policy in its entirety incorporating the revisions approved herein, as a result of a meeting of the Board.

P.U. 39 (1998-99)

Newfoundland Power Inc.

Approval of a contribution in aid of construction for a line extension.

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

P.U. 40 (1998-99)

Newfoundland Power Inc.

For approval of the balance of the Weather Normalization Reserve as of December 31, 1998 pursuant to Sections 69(3) and 78 of the Public Utilities Act.

The Applicantís weather normalization reserve of a Negative Balance of $5,022,022 as at December 31, 1998 be approve, as a result of a meeting of the Board.

P.U. 41

(1998-99)

Newfoundland & Labrador Hydro

For approval of a contribution in aid of construction for the supply of single phase electrical service to a cottage at Otter Creek, near Goose Bay, Labrador.

Approval was granted to the Applicant for a contribution in aid of construction for the supply of single phase electrical service to a seasonal residential customer at Otter Creek, near Goose Bay, Labrador, in the amount of $1,983.75, as a result of a meeting of the Board.

P.U. 42

(1998-99)

Newfoundland Power Inc.

For written consent to remove the St. Johnís Thermal Plant located on the Southside Road, St. Johnís, from service pursuant to Section 38 of the Act.

Approval was granted to the Applicant (a) pursuant to Section 38 of the Public Utilities Act, for the removal from service of the Plant; (b) The applicant provide the Board with documentation of environmental compliance from the Provincial Department of Government Services and Lands and/or the Department of Environment and Labour, and, if necessary, from any federal environment department that may be required by law for the Plant within 90 days of its decommissioning.

P.U. 43

(1998-99)

 

 

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