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ORDERS ISSUED BY THE BOARD DURING 2016

UNDER

THE PUBLIC UTILITIES ACT

CHAPTER P- 47, 1990

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Newfoundland and Labrador Hydro
  Application:  
  Application for approval of costs by Vale Newfoundland and Labrador Limited pursuant to Order No. P.U. 17(2015).
  Decision:  
  1. The costs of Vale are fixed at $5,232.00, exclusive of HST
  2. Hydro shall, within thirty days, pay costs to Vale in the amount of $5,232.00.
  Date Issued:  
  January 28, 2016  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application for approval of a cost submission by Vale Newfoundland & Labrador Limited pursuant to Order No. P.U. 36(2015).
  Decision:  
  1. The costs of Vale are fixed at $4,167.00, exclusive of HST.
  2. Hydro shall, within thirty days, pay costs to Vale in the amount of $4,167.00.
  Date Issued:  
  January 28, 2016  
     
     
Newfoundland Power
  Application:  
  Application by Newfoundland Power Inc. for approval of:
(i) revised distribution line costs per metre for Contributions in Aid of Construction (CIACs);
(ii) revised distribution plant upgrade cost for CIACs; and
(iii) CIAC cost factors.
  Decision:  
  1. The revised cost factors in Schedules A, B, C and D attached to this Order are approved to be used in the calculation of all CIACs with effect from February 10, 2016, and, where advantageous to customers of Newfoundland Power, on all CIACs quoted but unpaid as of February 10, 2016.
  2. Newfoundland Power shall submit a revised CIAC Policy in its entirety incorporating the revisions approved herein.
  3. Newfoundland Power shall pay the expenses of the Board arising from this Application.
  Date Issued:  
  January 28, 2016  
     
     
Newfoundland Power
  Application:  
  Application for approval of a of a contribution in aid of construction for single-phase service for the Seventh Day Adventist Church, pursuant to section 41 of the Act.
  Decision:  
  1. The Contribution in Aid of Construction of sixty-nine thousand one hundred ninety-seven dollars and five cents ($69,197.05), excluding HST, to provide single-phase service to Seventh Day Adventist Church is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  February 10, 2016  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application for approval of costs by Industrial Customer Group pursuant to Order No. P.U. 17(2015).
  Decision:  
  1. The costs of the Industrial Customer Group are fixed at $17,587.74, exclusive of HST.
  2. Hydro shall, within thirty days, pay costs to the Industrial Customer Group in the amount of $17,587.74.
  Date Issued:  
  February 10, 2016  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application for approval of costs by Vale Newfoundland and Labrador Limited pursuant to Order No. P.U. 35(2015).
  Decision:  
  1. The costs of Vale are fixed at $3,026.00, exclusive of HST.
  2. Hydro shall, within thirty days, pay costs to Vale in the amount of $3.026.00
  Date Issued:  
  February 15, 2016  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application for approval of costs by Industrial Customer Group pursuant to Order No. P.U. 35(2015).
  Decision:  
  1. The costs of the Industrial Customer Group are fixed at $6,827.75, exclusive of HST. .
  2. Hydro shall, within thirty days, pay costs to the Industrial Customer Group in the amount of $6,827.75
  Date Issued:  
  February 15, 2016  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application for approval of a capital expenditure to supplement the 2016 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 $1,000,000 to the 2016 Allowance for Unforeseen Items is approved.
  2. Hydro will establish a separate account to record the variance above the $1,000,000 Allowance for Unforeseen items approved in Order No. P.U. 33(2015) associated with the expenditures related to:
i) the Western Avalon Terminal Station (WAV) – T5 Tap Changer failure;
ii) boiler tube replacement on Holyrood Thermal Generating Station Unit 2;
iii) boiler tube replacement on Holyrood Thermal Generating Station Unit 1; and
iv) transmission line TL 259 rerouting at Sally’s Cove;
with the recovery of this variance to be addressed in a subsequent order of the Board following a further application by Hydro.
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  March 22, 2016  
     
     
Newfoundland and Labrador Hydro
  Application:  
  Application by Newfoundland and Labrador Hydro for approval of continued use, on an interim basis, of previously approved revisions to the utility rate charged to Newfoundland Power Inc. pursuant to sections 70 and 71 of the Act.
  Decision:  
 
  1. The proposed Utility rate is approved, on an interim basis, effective December 1, 2015.
  2. Hydro shall pay all costs and expenses of the Board in connection with this Application.
  Date Issued:  
  March 31, 2016  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for an Order of the Board providing for disposition of the balance in the Optional Seasonal Rate Revenue and Cost Recovery Account pursuant to Sections 58 and 80 of the Act.
  Decision:  
 
  1. The disposition of the balance in the Optional Seasonal Rate Revenue and Cost Recovery Account as of December 31, 2015 by charging the balance of $69,298 to the Rate Stabilization Account as of March 31, 2016 is approved.
  2. Newfoundland Power shall pay all costs and expenses of the Board in connection with this Application.
  Date Issued:  
  April 11, 2016  
     
     
Newfoundland Power Inc.
  Application:  
  Application by Newfoundland Power Inc. for an Order of the Board approving the balance in the Weather Normalization Reserve as of December 31, 2015 pursuant to sections 69(3) and 78 of the Act.
  Decision:  
 
  1. Newfoundland Power’s Weather Normalization Reserve of a negative balance of $4,410,537 as of December 31, 2015 is approved.
  2. Newfoundland Power shall pay all costs and expenses of the Board in connection with this Application.
  Date Issued:  
  April 11, 2016  
     
     
The Board’s Investigation and Hearing into Supply Issues and Power Outages on the Island Interconnected System Matter
  Motion by Newfoundland and Labrador Hydro for a determination that certain Requests for Information filed by Grand Riverkeeper Labrador, Inc. are outside the scope of the proceeding; and Motion by Grand Riverkeeper Labrador, Inc. for an order directing Newfoundland and Labrador Hydro to provide full and complete responses to certain Requests for Information.
  Decision:  
 
  1. The motion of Hydro for an Order determining that GRK-NLH-087-090 are outside the scope of the proceeding is hereby accepted.
  2. The motion of Hydro for an Order determining that GRK-NLH-092 is outside the scope of the proceeding is hereby denied.
  3. The motion of Grand Riverkeeper Labrador, Inc. for an Order requiring Hydro to provide full and complete responses to GRK-NLH-093, GRK-NLH-100, GRK-NLH-104, GRK-NLH-105, GRK-NLH-107 and GRK-NLH-115 through to GRK-NLH-121 is hereby denied.
  Date Issued:  
  April 22, 2016  
     
     
Newfoundland and Labrador Hydro
  Prudence Review  
  A review undertaken as part of the Board’s consideration of an amended general rate application, filed by Newfoundland and Labrador Hydro (“Hydro”) on November 10, 2014, and examines the prudence of Hydro’s actions and decisions related to 11 projects and expenditures for which Hydro is seeking cost recovery from customers.
  Decision:  
 
  1. Hydro will not recover capital or operating expenses in the 2014 revenue requirement and/or the 2015 test year costs associated with:
    1. overhauls of the Sunnyside B1L03 and Holyrood B1L17 breakers associated with imprudence
    2. the portion of the Sunnyside Terminal Station equipment repairs and replacement associated with imprudence
    3. the Western Avalon T5 tap changer replacement and transformer repairs associated with imprudence
    4. extraordinary transformer and breaker repairs in 2014 and 2015 associated with imprudence
    5. additional supply costs associated with the 2014 failure of Holyrood breaker B1L17 and the resulting outage of Holyrood Unit 1 associated with imprudence
    6. certain expenses related to professional services-consulting fees, salary transfers, and overtime associated with imprudence and the Board’s investigation into the January 2014 outages
    7. Holyrood Unit 1 turbine failure in 2013.
  2. Hydro will not recover in the 2014 revenue requirement $500,000 associated with its imprudence in managing black start capability at Holyrood.
  3. Hydro will create a separate account into which will be transferred professional services-consulting fees, salary transfers and overtime costs for 2014, 2015 and subsequent years relating to Phase Two of the Board’s investigation into the January 2014 outages, with the recovery of the costs to be addressed in a subsequent order of the Board following a further application by Hydro.
  4. Hydro will file in accordance with the subsequent direction of the Board a revised 2014 revenue requirement and revenue deficiency calculation, a revised 2015 test year revenue requirement and revenue deficiency calculation, and supporting documentation reflecting the findings of the Board in this Decision and Order.
  Date Issued:  
  April 28, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application by Newfoundland and Labrador Hydro to abandon the Long Harbour Terminal Station, pursuant to section 38 of the Act.
  Decision:  
 
  1. Pursuant to Section 38 of the Act, the abandonment by Hydro of the Long Harbour Terminal Station is approved.
  2. Hydro shall pay all costs and expenses of the Board incurred in connection with this Application.
  Date Issued:  
  April 29, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro on November 10, 2014; and proposed changes to the interim transmission demand rate for Labrador industrial customers.
  Decision:  
 
  1. The Labrador Industrial-Transmission Rate as set out in Schedule A is approved on an interim basis.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  May 3, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval of: (1) a Contribution in Aid of Construction for a line extension to serve Domestic Customers in the cottage area known as Duley Lake, near Labrador City pursuant to section 41 of the Act; and (2) a deviation from the Contribution in Aid of Construction applicable to Domestic Customers in relation to the calculation based on estimated construction costs in addition to line extension costs as provided for in clause 6(a)(iii) of the policy.
  Decision:  
 
  1. The Non-Refundable Contribution in Aid of Construction of thirteen thousand eight hundred fifty-eight dollars and seventy cents ($13,858.70), excluding HST, to apply to Domestic Customers located in the cottage area known as Duley Lake is approved.
  2. A deviation from the Policy requirement respecting the calculation of the Contribution in Aid of Construction is approved.
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  May 17, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval of of a capital expenditure to procure 12 MW of diesel generation at the Holyrood Thermal Generating Station, pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $6,300,000 to purchase 12 MW of diesel generation presently installed at the Holyrood Thermal Generating Station is approved.
  2. The proposed deferral and amortization of $1,300,000 over a period of five years with unamortized balances to be included in rate base is approved.
  3. The Industrial Customer Group is entitled to an award of costs in an amount to be fixed by the Board upon the filing of a detailed cost submission within 30 days of this Order.
  4. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  May 24, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application for approval of a general rate application by Newfoundland Power Inc. for approval of, inter alia, rates to be charged its customers.
  Decision:  
 

Rate Base, Return on Rate Base and Range of Return

  1. Newfoundland Power shall file an application for approval of a revised forecast average rate base and rate of return on rate base for 2016 and 2017, based on the proposals in the Application and incorporating the determinations of the Board in this Order, including: 
    1. a common equity component in the capital structure not to exceed 45% for ratemaking purposes; and
    2. a ratemaking rate of return on common equity of 8.5%.
  2. Newfoundland Power shall file an application on or before November 15, 2017 for approval of the 2018 forecast average rate base and rate of return on rate base maintaining the ratemaking common equity ratio and return on common equity established in this Order.
  3. Newfoundland Power shall, unless otherwise directed by the Board, file its next general rate application, with a 2019 test year, no later than June 1, 2018.
  4. The use of an automatic adjustment formula shall be suspended pending a further Order of the Board.

Revenue Requirement

  1. Newfoundland Power shall calculate and file a revised forecast revenue requirement for the 2016 and 2017 test years, based on the proposals contained in the Application and incorporating the determinations of the Board in this Order, including a reduction of 50% in the Short-Term Incentive amounts related to earnings and regulatory performance.

Depreciation

  1. Newfoundland Power’s proposal to use the depreciation rates recommended in the 2014 Depreciation Study filed for the calculation of depreciation expense with effect from January 1, 2016 is approved.

Other Regulatory Matters

  1. The amortization from July 1, 2016 to December 31, 2018 of hearing costs in an amount of up to $1.0 million is approved, and any costs over this amount billed to Newfoundland Power may be collected through the Rate Stabilization Account.
  2. The amortization from July 1, 2016 to December 31, 2018 of the amount of the revenue shortfall for 2016 resulting from the July 1, 2016 implementation of new rates arising from this Order is approved.
  3. Newfoundland Power’s proposal to change its evaluation of customer conservation programs by use of the total resource cost test and program administrator cost test is approved.

Rates, Rules and Regulations

  1. Newfoundland Power’s proposed changes to the rules and regulations covering service, and proposed changes to rate design and structure, as set out in the Application, are approved.
  2. Newfoundland Power’s proposed changes to the General Service Contribution in Aid of Construction Policy to be effective on and after July 1, 2016 are approved.
  3. Newfoundland Power shall file an application for approval of a revised Schedule of Rates, Tolls and Charges effective for service provided on and after July 1, 2016, based on the proposals in the Application, incorporating the determinations of the Board in this Order, and the annual Rate Stabilization Account adjustment.
  4. Newfoundland Power shall file a revised Rules and Regulations to be effective July 1, 2016.

Costs

  1. 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:  
  June 8, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval to replace boiler tubes on Units 1 and 2 and to complete additional reliability improvements at the Holyrood Thermal Generating Station pursuant to Section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure of $11,800,000 to replace lower reheater tubes that service the Unit 1 and 2 boilers and to complete additional reliability improvements to replace critical equipment and conduct level 2 condition assessments at the Holyrood Thermal Generating Station is approved.

  2. Hydro shall report on the contingency expenditures associated with additional component replacements arising from this project, setting out in detail the work which was done, the associated costs and the justification, as a part of its year-end capital expenditures variance report.
  3. Hydro shall pay all expenses of the Board arising from this Application.

  Date Issued:  
  June 10, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval to reroute transmission line TL 227 and distribution line Sally’s Cove L1 pursuant to Section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditures in the amount of $717,000 in 2016 and $1,533,000 in 2017 to reroute transmission line TL 227 and distribution line Sally’s Cove L1 are approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.

  Date Issued:  
  June 10, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval pursuant to Section 70 of the Act, of the Rate Stabilization Plan Adjustment in the rates to be charged to Newfoundland Power Inc.
  Decision:  
 
  1. The rates to be charged by Hydro to Newfoundland Power, as set out in Schedule “A” to this Order, to be effective for electrical consumption on or after July 1, 2016, are approved on an interim basis.
  2. Hydro shall pay the expenses of the Board incurred in connection with this matter.
  Date Issued:  
  June 13, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval to refurbish gas generator engines at the Hardwoods Gas Turbine Plant and the Stephenville Gas Turbine Plant pursuant to Section 41 of the Act
  Decision:  
 
  1. The proposed capital expenditure in the amount of $3,047,100 for the refurbishment of gas generator End A engine, serial number 202205, at the Hardwoods Gas Turbine Plant and gas generator End A engine, serial number 202204, at the Stephenville Gas Turbine Plant, is approved.

  2. Hydro shall file a report by November 30, 2016 in relation to the refurbishment of the gas generator engines addressing the causes of the failures and impacts and considerations in relation to the reliability of Hardwoods and Stephenville.
  3. Hydro shall pay all expenses of the Board arising from this Application.

  Date Issued:  
  June 15, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro to vary the amounts approved in Order No. P.U. 17(2016) related to 12 MW of diesel generation at the Holyrood Thermal Generating Station.
  Decision:  
 
  1. The deferral and amortization of the additional lease costs of $300,000 associated with the 12 MW of diesel generation installed at Holyrood Thermal Generating Station over a period of five years with unamortized balances to be included in rate base is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  June 22, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro to approval of a deferral account for diesel fuel consumed in 2016 to provide capacity and energy to the Island Interconnected system pursuant to section 70 of the Act.
  Decision:  
 
  1. The Application is denied.
  2. The Industrial Customer Group and Vale are entitled to an award of costs in an amount to be determined by the Board upon the filing of a detailed cost submission within 30 days of the date of this Order.
  3. Hydro shall pay the expenses of the Board arising from this Application.
  Date Issued:  
  June 22, 2016  
     
     
Newfoundland Power Inc
  Application  
  Application filed by Newfoundland Power Inc. for approval of inter alia, rates to be charged its customers; and an application filed by Newfoundland Power Inc. for approval of: (i) customer rates, tolls and charges reflecting the determinations set out in Order No. P.U. 18(2016); and (ii) a revised rate stabilization adjustment and municipal tax adjustment to apply to the rates of Newfoundland Power Inc. for the period of July 1, 2016 to June 30, 2017.
  Decision:  
 
  1. The forecast average rate base for 2016 of $1,060,334,000 and the forecast average rate base for 2017 of $1,104,702,000 are approved.
  2. The rate of return on average rate base for 2016 of 7.21% in a range of 7.03% to 7.39% and the rate of return on average rate base for 2017 of 7.19% in a range of 7.01% to 7.37% are approved.
  3. The Rate Stabilization Adjustment of (1.110) cents/kWh and the Municipal Tax Adjustment Factor of 1.02526 for the period of July 1, 2016 to June 30, 2017 are approved.
  4. 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 July 1, 2016, is approved.
  5. The Rules and Regulations of Newfoundland Power as set out in Schedule B to be effective on and after July 1, 2016 are approved.
  6. Newfoundland Power shall pay the expenses of the Board arising from this Application.
  Date Issued:  
  June 29, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed 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 July 1, 2016 for its Island Interconnected customers (rate Classes 1.1, 1.1S, 2.1, 2.3, 2.4 and 4.1), excluding Burgeo School & Library, and Isolated Rural customers (rate Classes 1.2D, 1.2DS, 2.1D, 2.2D and 4.1D), as set out in Schedule A to this Order, are approved on an interim basis.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  June 29, 2016  
   

 

 

The Board’s Investigation and Hearing into Supply Issues and Power Outages on the Island Interconnected System Matter
  Application  
  An application by Grand Riverkeeper Labrador, Inc. for an interim award of costs
  Decision:  
 
  1. The Application is denied
  Date Issued:  
  July 7, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
 

Application filed by Newfoundland and Labrador Hydro for approval to refurbish Unit 4 at Bay d’Espoir pursuant to section 41 of the Act.

  Decision:  
 
  1. The proposed capital expenditure in the amount of $1,977,300 for the refurbishment and overhaul of Unit 4 at Bay d’Espoir is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application
  Date Issued:  
  July 8, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application filed by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for a line extension to serve a seasonal residential development in the cottage area known as Ocean Pond, near Whitbourne
  Decision:  
 
  1. The Contribution in Aid of Construction of one hundred thirty six thousand seven hundred twenty five dollars ($136,725.00), excluding HST, to apply to a seasonal residential development located in the cottage area known as Ocean Pond, near the Town of Whitbourne, is approved.
  2. A deviation from the Policy requirement respecting the calculation of the Contribution in Aid of Construction is approved.
  3. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  July 13, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application filed by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for approval of a Contribution in Aid of Construction for three-phase service for Bell Aliant Regional Communications LP.
  Decision:  
 
  1. The Contribution in Aid of Construction of five hundred seventy-four thousand one hundred seventy-nine dollars and twelve cents ($574,179.12), excluding HST, to provide three-phase service to Bell Aliant Regional Communications LP is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  July 14, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application filed by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction approval of: (1) a Contribution in Aid of Construction for a line extension to serve Domestic Customers in the cottage area known as Stagg Pond, near Glovertown, pursuant to section 41 of the Act; and (2) a deviation from the Contribution in Aid of Construction 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:  
 
  1. The Non-Refundable Contribution in Aid of Construction of nine thousand six hundred forty-six dollars and four cents ($9,646.04), excluding HST, to apply to Domestic Customers located in the cottage area known as Stagg Pond, near Glovertown, is approved.
  2. A deviation from the Policy requirement respecting down payments to allow Newfoundland Power to commence construction of the Extension is approved.
  3. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  July 14, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application filed by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for three-phase service for 10718 Nfld. Inc.
  Decision:  
 
  1. The Contribution in Aid of Construction of sixty-two thousand five hundred sixty-one dollars ($62,561.00), excluding HST, to provide three-phase service to 10718 Nfld. Inc. is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  July 14, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for approval of a capital expenditure to procure 12 MW of diesel generation at the Holyrood Thermal Generating Station; and an application for costs by the Industrial Customer Group pursuant to Order No. P.U. 17(2016).
  Decision:  
 
  1. The costs of the Industrial Customer Group are fixed at $5,665.94, exclusive of HST.
  2. Hydro shall, within thirty days, pay costs to the Industrial Customer Group in the amount of $5,665.94.
  Date Issued:  
  July 19, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application for approval of a general rate application by Newfoundland Power Inc. for approval of, inter alia, rates to be charged its customers; and a request for costs.
  Decision:  
 
  1. The request for costs is denied.
  Date Issued:  
  July 21, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application for approval for the refund to its customers of a surplus balance in Newfoundland and Labrador Hydro’s Rate Stabilization Plan.
  Decision:  
 
  1. The Newfoundland Power Customer Refund Plan as set out in Schedule A to this Order is approved.
  2. Newfoundland Power shall file with the Board:
    1. a. copies of correspondence with Canadian Revenue Agency with respect to the applicability of the Harmonized Sales Tax (HST) to the refunds;
      b. copies of correspondence with the Government of Newfoundland and Labrador with respect to the applicability of the residential energy rebate in determining the refunds;
      c. a report on the status of the refunds in its quarterly reporting to the Board throughout the refund process; and
      d. a final report once all refunds have been issued in accordance with the Newfoundland Power Customer Refund Plan.
  3. Newfoundland Power shall pay the expenses of the Board incurred in connection with this Application.
  Date Issued:  
  September 2, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for a proposal by Newfoundland and Labrador Hydro for the refund to its customers of a surplus balance in Newfoundland and Labrador Hydro’s Rate Stabilization Plan.
  Decision:  
 
  1. The Hydro Customer Refund Plan as set out in Schedule A to this Order is approved.
  2. Hydro shall file with the Board:
    1. copies of correspondence with Government as to formal confirmation of the applicability of recovery of the residential energy rebate in determining customer refunds;
    2. a report on the status of customer refunds in its quarterly reporting to the Board throughout the refund process; and
    3. a final report once all refunds have been issued in accordance with the Hydro Customer Refund Plan.
  3. Hydro shall pay the expenses of the Board incurred in connection with the Application.
  Date Issued:  
  September 7, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for approval to acquire the Wabush Terminal Station pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $490,000 for the purchase of :
    1. the Wabush Terminal Station including installed equipment;
    2. a segment of the two 230 kV transmission lines that run between the Churchill Falls Switchyard and the Wabush Terminal Station;
    3. lands adjacent to the Wabush Terminal Station; and
    4. a parcel of land near the Wabush Terminal Substation,
is approved.
  1. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  September 8, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for approval to issue debentures pursuant to section 91 of the Act.
  Decision:  
 
  1. Hydro’s proposal to issue debentures in an amount of up to $350,000,000 to refinance Series AE debentures totaling $225,000,000 and to retire outstanding short-term debt is approved subject to the following conditions:
    1. The debentures shall be issued on or before October 31, 2016.
    2. Hydro shall file with the Board a report specifying the terms and conditions of the bond issue within five
      1. (5) days after closing, setting out the following:
        1. date of issue;
        2. term;
        3. maturity date;
        4. principal amount;
        5. interest rate;
        6. particulars of sinking fund, if any;
        7. price to public and to the underwriters;
        8. yield to the public;
        9. underwriting fee;
        10. actual cost (i.e. yield) to Hydro; and
        11. any other material terms or conditions.
    3. Hydro shall file with the Board a copy of the Underwriting Agreement relating to the debentures within five (5) days after closing.
    4. Hydro shall file with the Board a copy of the Order in Council providing approval to issue the debentures within five (5) days of receipt of the Order in Council.
    5. Hydro shall file with the Board a report on the disposition of the proceeds no later than six months from the date of the closing.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  September 9, 2016  
     
     
Newfoundland Power Inc.
  Application  
  Application by Newfoundland Power Inc. for an Order pursuant to Sections 41 and 78 of the Act:
     (a) approving a 2017 Capital Budget of $89,411,000;
     (b) approving certain capital expenditures related to multi-year projects commencing in 2017; and
     (c) fixing and determining a 2015 rate base of $1,019,082,000.
  Decision:  
 
  1. Newfoundland Power’s proposed construction and purchase of improvements or additions to its property to be completed in 2017, as set out in Schedule A to this Order, are approved.
  2. Newfoundland Power’s proposed multi-year construction and purchase of improvements or additions to its property to begin in 2017, as set out in Schedule B to this Order, are approved.
  3. Newfoundland Power’s 2017 Capital Budget for improvements or additions to its property in an amount of $89,411,000, as set out in Schedule C to this Order, is approved.
  4. Newfoundland Power’s average rate base for the year ending December 31, 2015 is hereby fixed and determined at $1,019,082,000.
  5. Unless otherwise directed by the Board, Newfoundland Power shall file an annual report to the Board on its 2017 capital expenditures by March 1, 2018.
  6. Unless otherwise directed by the Board, Newfoundland Power shall provide, in conjunction with the 2018 Capital Budget Application, a status report on the 2017 capital budget expenditures showing for each project:
    1. the approved budget for 2017;
    2. the expenditures prior to 2017;
    3. the 2017 expenditures to the date of the application;
    4. the remaining projected expenditures for 2017;
    5. the variance between the projected total expenditures and the approved budget; and
    6. an explanation of the variance.
  7. Newfoundland Power shall pay all costs and expenses of the Board incurred in connection with the Application.
  Date Issued:  
  September 12, 2016  
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for approval of the combustor inspection and overhaul of the combustion turbine located in Holyrood pursuant to section 41 of the Act.
  Decision:  
 
  1. The proposed capital expenditure in the amount of $4,738,300 to perform a combustor inspection and overhaul on the combustion turbine located in Holyrood is approved.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  September 23, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for approval to abandon the 15 MW gas turbine at Holyrood, pursuant to section 38 of the Act.
  Decision:  
 
  1. Pursuant to Section 38 of the Act, the abandonment by Hydro of the 15 MW gas turbine in Holyrood is approved.
  2. Hydro shall pay all costs and expenses of the Board incurred in connection with this Application.
  Date Issued:  
  September 30, 2016
     
     
The Board’s Investigation and Hearing into Supply Issues and Power Outages on the Island Interconnected System
  Matter  
  A claim for an award of costs by Danny Dumaresque.
  Decision:  
 
  1. Mr. Dumaresque is entitled to an award of costs in the amount of $5,000, exclusive of HST.
  2. Hydro shall within 30 days of this Order pay costs in the amount of $5,000, exclusive of HST, to Mr. Dumaresque with recovery of these costs to be addressed in a subsequent Order of the Board.
  Date Issued:  
  October 4, 2016
     
     
Newfoundland and Labrador Hydro Prudence Review
  Matter  
  A claim for an award of costs by Danny Dumaresque.
  Prudence Review:  
 
  1. The request for award of costs is denied.
  Date Issued:  
  October 12, 2016
     
     
Newfoundland Power Inc.
  Application  
  Application filed by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for a line extension to serve seasonal residential building lots in the Dildo Pond Cottage area, pursuant to section 41 of the Act.
  Decision:  
 
  1. The Contribution in Aid of Construction of fifty four thousand four hundred thirty dollars ($54,430.00), excluding HST, to apply to a seasonal residential development located in the Dildo Pond cottage area, near the community of South Dildo, is approved.
  2. A deviation from the Policy requirement respecting the calculation of the Contribution in Aid of Construction is approved.
  3. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  October 13, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for an Order pursuant to Section 41 of the Act:
  1. its 2017 capital purchases and construction projects in excess of $50,000;
  2. its 2017 Capital Budget; and
  3. its estimated contributions in aid of construction for 2017.
  Decision:  
 
  1. Hydro’s proposed construction and purchase of improvements or additions to its property in excess of $50,000 to be completed in 2017, as set out in Schedule A to this Order, are approved.
  2. Hydro’s proposed multi-year construction and purchase of improvements or additions to its property in excess of $50,000 to begin in 2017, as set out in Schedule B to this Order, are approved.
  3. Hydro’s proposed contributions in aid of construction for 2017 are approved.
  4. Hydro’s 2017 Capital Budget for improvements or additions to its property in an amount of $271,265,600, as set out in Schedule C to this Order, is approved.
  5. Unless otherwise directed by the Board Hydro shall file, with the 2018 Capital Budget Application, an updated overview in relation to the proposed capital expenditures for the Holyrood Thermal Generating Station.
  6. Unless otherwise directed by the Board Hydro shall file an annual report to the Board on its 2017 capital expenditures by March 1, 2018.
  7. Unless otherwise directed by the Board, Hydro shall provide, in conjunction with the 2018 Capital Budget Application, a status report on the 2017 capital budget expenditures showing for each project:
    1. the approved budget for 2017;
    2. the expenditures prior to 2017;
    3. the 2017 expenditures to the date of the application;
    4. the remaining projected expenditures for 2017;
    5. the variance between the projected total expenditures and the approved budget; and
    6. an explanation of the variance.
  8. Hydro shall pay all costs and expenses of the Board incurred in connection with the Application.
  Date Issued:  
  November 8, 2016
     
     
Newfoundland and Labrador Hydro Prudence Review
  Application  
  Application for approval of costs by the Industrial Customer Group pursuant to Order No. P.U. 24(2016).
  Decision:  
 
  1. The costs of the Industrial Customer Group are fixed at $18,887.75, exclusive of HST.
  2. Hydro shall, within thirty days, pay costs to the Industrial Customer Group in the amount of $18,887.75.
  Date Issued:  
  November 10, 2016
     
     
Newfoundland Power Inc.
  Application  
  Application filed by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for single-phase service to the Town of Glovertown, pursuant to section 41 of the Act.
  Decision:  
 
  1. The Contribution in Aid of Construction of fifty four thousand four hundred eighty five dollars ($54,485.00), excluding HST, to provide single-phase supply to a water intake facility in the Town of Glovertown is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  November 24, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for approval of a capital expenditure to supplement the 2016 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 $1,000,000 to the 2016 Allowance for Unforeseen Items is approved.
  2. Hydro will establish a separate account to record the variance above the $1,000,000 Allowance for Unforeseen items approved in Order No. P.U. 8(2016) associated with the expenditures related to:
    1. the Bay d’Espoir Access Roads Refurbishment; and
    1. Bay d’Espoir Penstock 1 Refurbishment
      with the recovery of this variance to be addressed in a subsequent order of the Board following a further application by Hydro.
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  November 24, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
  Application for a general rate application filed by Newfoundland and Labrador Hydro on July 30, 2013; and an amended general rate application filed by Newfoundland and Labrador Hydro on November 10, 2014.
  Decision:  
 

PRUDENCE REVIEW
1. Hydro’s prudence compliance filing arising from Order No. P.U. 13(2016) is accepted and shall be incorporated in the revised proposals to be filed as a result of this Decision and Order.

SETTLEMENT AGREEMENTS
2. The Settlement Agreement and the Supplemental Settlement Agreement are accepted and shall be incorporated in the revised proposals to be filed as a result of this Decision and Order.

COST OF CAPITAL AND RETURN ON EQUITY
3. The return on equity to be used in calculating the allowed rate of return on rate base for 2014 and 2015 for the purpose of calculating the 2014 and 2015 revenue deficiencies shall be 8.8%.
4. The return on equity to be used in calculating the allowed rate of return on rate base for rate setting purposes, beginning in 2016, shall be 8.5%.
5. Hydro shall, with its next general rate application and no later than June 30, 2017, file a proposal in relation to an adjustment mechanism for its target return on equity, in accordance with the findings of the Board in this Decision and Order.

REVENUE REQUIREMENT
6. Hydro shall file, for approval of the Board, a revised revenue requirement for the 2015 test year for rate setting purposes, incorporating the findings of the Board in this Decision and Order.

RATE BASE AND RETURN ON RATE BASE
7. Hydro shall file, for approval of the Board, a revised 2013 rate base, incorporating the findings of the Board in this Decision and Order.
8. Hydro shall file, for approval of the Board, a revised forecast average rate base for 2014, incorporating the findings of the Board in this Decision and Order.
9. Hydro shall file, for approval of the Board, a revised forecast average rate base and rate of return on rate base for the 2015 test year for rate setting purposes, incorporating the findings of the Board in this Decision and Order.
10. Hydro shall file a revised excess earnings account definition to reflect a range of rate of return on rate base of + 20 basis points.
RECOVERY OF 2014 AND 2015 REVENUE DEFICIENCIES
11. Hydro shall file a revised calculation of the 2014 and 2015 deficiencies setting out revised calculations of the revenue requirement, rate base and rate of return on rate base for each year, and incorporating the findings of the Board in this Decision and Order.
12. Hydro shall file a proposal for the recovery of the 2014 and 2015 revenue deficiencies, and the 2014 additional supply costs deferral, by customer class, incorporating the findings of the Board in this Decision and Order.

COST OF SERVICE
13. Hydro shall file updated test year cost of service studies, incorporating the findings of the Board in this Decision and Order, for 2014 and 2015.

DEFERRAL AND RECOVERY MECHANISMS
14. Hydro shall file revised definitions for the Isolated Systems Supply Cost Variance Deferral Account, the Energy Supply Cost Variance Deferral Account and the Holyrood Conversion Rate Deferral Account, in accordance with the findings of the Board in this Decision and Order.
15. Hydro’s proposal to defer and recover annual customer energy conservation program costs beginning in 2016 is approved, in accordance with the findings of the Board in this Decision and Order.
16. Hydro’s proposal to amortize, over a five-year period beginning in 2015, the costs associated with: a. the Holyrood Black Start diesels, in the amount of $5.2 million; and b. extraordinary transformer and breaker repairs not associated with imprudence is approved.
17. Hydro will be allowed to amortize, over a three-year period beginning in 2015, general rate application costs for 2015 in the amount of $750,000.

RATES, RULES AND REGULATIONS
18. 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.
19. Hydro shall file a proposal for the finalization of Industrial customer rates, incorporating the findings of the Board in this Decision and Order.

OTHER MATTERS
20. Hydro shall file on or before March 31, 2017 a proposal in relation to annual reporting of intercompany activity, starting in 2017, in accordance with the findings of the Board in this Decision and Order.
21. Hydro shall file a report by January 13, 2017 in relation to its Account Management Framework, in accordance with the findings of the Board in this Decision and Order.
22. Hydro shall file with its next general rate application a report in relation to its Customer Service Strategic Roadmap, in accordance with the findings of the Board in this Decision and Order.
23. Hydro shall file a report with its next general rate application in relation to the identification of the rural subsidy on customers’ bills, in accordance with the findings of the Board in this Decision and Order.
24. Hydro shall file its next general rate application no later than March 31, 2017 for rates based on a 2018 test year.

HEARING COSTS
25. 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.
26. Leave is granted to the 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:  
  December 1, 2016
     
     
Newfoundland Power Inc
  Application  
  Application filed by Newfoundland Power Inc. for approval of a Contribution in Aid of Construction for three-phase service to the Western Regional Service Board, pursuant to section 41 of the Act.
  Decision:  
 
  1. The Contribution in Aid of Construction of seventy nine thousand two hundred eighteen dollars ($79,218.00), excluding HST, to provide three-phase service to the Western Regional Service Board’s waste management facility near the Town of St. George’s is approved.
  2. Newfoundland Power shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 14, 2016
     
     
Newfoundland Power Inc
  Application  
 

Application by
Newfoundland Power Inc. for approval of:
(i)            revised distribution line costs per metre for Contributions in Aid of Construction (CIACs);
(ii)           revised distribution plant upgrade cost for CIACs; and
(iii)          CIAC cost factors.

  Decision:  
 
  1. The revised cost factors in Schedules A, B, C and D attached to this Order are approved to be used in the calculation of all CIACs with effect from January 1, 2017, and, where advantageous to the customer, on all CIACs quoted but unpaid as of January 1, 2017.
  2. Newfoundland Power shall submit a revised CIAC Policy incorporating the revisions approved herein.
  3. Newfoundland Power shall pay the expenses of the Board arising from this Application.
  Date Issued:  
  December 15, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
 

Application filed by Newfoundland and Labrador Hydro for approval of Rules and Regulations to reflect changes to Newfoundland Power’s Contribution in Aid of Construction policy pursuant to section 71.

  Decision:  
 
  1. The Rules and Regulations as set out in Appendix A are approved effective July 1, 2016.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 16, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval for approval to issue debentures pursuant to section 91 of the Act.
  Decision:  
 
  1. Hydro’s proposal to issue debentures in an amount of up to $550,000,000 to refinance a short term promissory note totaling $225,000,000, to retire outstanding short-term debt and to issue the rate stabilization plan refund is approved subject to the following conditions:
    1. The debentures shall be issued on or before February 28, 2017.
    2. Hydro shall file with the Board a report specifying the terms and conditions of the bond issue within five (5) days after closing, setting out the following:
      1. date of issue;
      2. term;
      3. maturity date;
      4. principal amount;
      5. interest rate;
      6. particulars of sinking fund, if any;
      7. price to public and to the underwriters;
      8. yield to the public;
      9. underwriting fee;
      10. actual cost (i.e. yield) to Hydro; and
      11. any other material terms or conditions.
      12. Hydro shall file with the Board a copy of the Underwriting Agreement relating to the debentures within five (5) days after closing.
      13. Hydro shall file with the Board a copy of the Order in Council providing approval to issue the debentures within five (5) days of receipt of the Order in Council.
      14. Hydro shall file with the Board a report on the disposition of the proceeds no later than six months from the date of the closing.
  2. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 20, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval of revisions to the Rate Stabilization Plan rules.
  Decision:  
 
  1. The proposed revisions to the Rate Stabilization Plan rules are accepted to be effective with the implementation of new rates arising from Hydro’s general rate application.
  2. Hydro shall include the proposed revisions in the revised Rate Stabilization Plan rules to be filed in accordance with Order No. P.U. 49(2016).
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 21, 2016
     
     
Newfoundland and Labrador Hydro
  Application  
  Application filed by Newfoundland and Labrador Hydro for approval of a Capacity Assistance Agreement with Praxair Canada Inc. pursuant to sections 70, 71 and 80 of the Act.
  Decision:  
 
  1. The proposed Capacity Assistance Agreement with Praxair Canada Inc., effective December 1, 2016, is approved.
  2. Hydro shall file with the Board, no later than April 15 of the year following each winter period December 1 - March 31 while the agreement is in place, a report setting out the dates, times, duration and system conditions, including generation available and calculation of system reserve, under which capacity assistance was requested, the capacity assistance requested and provided, and the capacity and variable payments made.
  3. Hydro shall pay all expenses of the Board arising from this Application.
  Date Issued:  
  December 21, 2016
     
     
     
     
Newfoundland and Labrador Hydro
  Application  
  An amended general rate application filed by Newfoundland and Labrador Hydro on November 10, 2014 and Board Order No. P.U. 49(2016); and an application filed by Newfoundland and Labrador Hydro for approval of a cost deferral account for 2016.
  Decision:  
 
  1. Hydro’s proposed 2016 cost deferral account, as set out in Schedule A, in the amount of $38.8 million is approved.
  2. Hydro shall pay the expenses of the Board arising from this Application.
  Date Issued:  
  December 22, 2016
     
     
     
     
     


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