
|
Order UE20-02 - Electric - Docket UE20930 - Maritime Electric
Company, Limited (May 5, 2020)
Click here for a PDF version of
this Order.

Docket
UE20730 Order UE20-02
IN
THE MATTER of an
application by Maritime Electric Company, Limited for an order of the Island
Regulatory and Appeals Commission approving the 2020 Annual Capital Budget,
pursuant to section 17(1) of the
Electric Power Act, R.S.P.E.I. 1988, Cap.
E-4, and for certain approvals incidental thereto;
AND
IN THE MATTER
of
a Supplemental Budget Request filed by Maritime Electric Company, Limited for
an order approving certain 2020 capital expenditures related to the PEI
Broadband Project.
BEFORE THE
COMMISSION ON
Tuesday,
the 5th day of May, 2020.
J. Scott MacKenzie,
Q.C., Chair
M. Douglas Clow, Vice-Chair
Erin T. Mitchell, Commissioner
Order
WHEREAS on or
about August 23, 2019, Maritime Electric Company, Limited ("Maritime
Electric" or the "Company") filed an application with the Island Regulatory
and Appeals Commission (the "Commission") pursuant to section 17(1) of the
Electric Power Act, R.S.P.E.I. 1988, Cap. E-4 (the
"Act") seeking approval
of the Company's 2020 Annual Capital Budget (the "2020 Capital Budget");
AND WHEREAS in
section 5.5 of the 2020 Capital Budget, the Company sought approval for line
rebuilds associated with the PEI Broadband Project, but the Company did not
include the amount of capital expenditures associated with the PEI Broadband
Project;
AND WHEREAS on or about December 5, 2019,
the Company filed a supplemental budget request with the Commission seeking
approval of a provisional amount for 2020 capital expenditures associated
with the PEI Broadband Project (the "Supplemental Budget Request");
AND WHEREAS on
December 9, 2019, the Commission issued Order
UE19-09 approving the 2020
Capital Budget, subject to certain exceptions, but did not approve the
Supplemental Budget Request as the Commission required further information
from the Company;
AND WHEREAS the
Commission issued interrogatories to Maritime Electric on February 11, 2020
and April 17, 2020 with respect to the Supplemental Budget Request;
AND WHEREAS
Maritime Electric has filed responses to the interrogatories and the
Commission has had an opportunity to review the responses;
AND WHEREAS
section 8 of the
Act requires Maritime Electric, as a public utility, to
permit the use of its conduits, poles, wires and other equipment by any
person providing telephone or cable television service to the public;
AND WHEREAS
section 8 of the
Act further requires that the joint use of equipment shall
be for reasonable compensation, wherever public convenience and necessity
requires the use, and when the use will not result in any detriment to the
service already being rendered or in any danger to the safety of the public;
AND WHEREAS Bell
Canada ("Bell") and Xplornet Communications Inc. ("Xplornet") shall
compensate Maritime Electric for the joint use of Maritime Electric's
equipment in relation to the PEI Broadband Project;
AND WHEREAS in
accordance with the Supplemental Budget Request, the Company is seeking
approval to increase the 2020 capital expenditures for line rebuilds from
$3,587,000 to $9,297,000, representing an increase of $5,710,000;
AND WHEREAS the
Company is also seeking approval to increase the 2020 contributions from
customers from $400,000 to $2,400,000, representing an increase of
$2,000,000;
AND WHEREAS the
Commission has determined that the proposed revisions to the 2020 Capital
Budget set forth in the Supplemental Budget Request are, in the
circumstances, reasonable;
NOW THEREFORE,
pursuant to section 17 of the
Act, the Commission Orders as follows:
1.
The Supplemental Budget Request for 2020 capital expenditures related to the PEI
Broadband Project is hereby approved. The 2020 Capital Budget, as approved
in Order
UE19-09, shall therefore be revised as follows:
2020 Revised Capital
Budget
|
Description |
Line Rebuilds |
Contributions |
PEI Broadband
Project - Bell |
$2,436,000 |
- |
PEI Broadband
Project - Xplornet |
$3,274,000 |
$2,000,000 |
Subtotal |
$5,710,000 |
$2,000,000 |
2020 Capital Budget
as Approved in Order
UE19-09 |
$3,587,000 |
$400,000 |
Revised 2020
Capital Budget |
$9,297,000 |
$2,400,000 |
2.
A summary of the revised 2020 annual capital expenditures is therefore as
follows:
Expenditure |
Amount
Approved in Order UE19-09 |
Revised
Amount Approved in Order UE20-02 |
Generation |
$767,000 |
$767,000 |
Distribution |
$21,609,000 |
$27,319,000 |
Transmission |
$9,214,000 |
$9,214,000 |
Corporate |
$1,956,000 |
$1,956,000 |
Capitalized
General Expense |
$557,000 |
$557,000 |
Interest During
Construction |
$563,000 |
$563,000 |
Less: Customer
Contributions |
($400,000) |
(2,400,000) |
Net Capital Expenditures |
$34,266,000 |
$37,976,000 |
3.
The Company shall file written reports with the Commission every
three (3) months from the date the Company commences work on the PEI
Broadband Project. The reports shall provide updates on costs, work
performed, project timelines, and any variations from the expenditures
approved herein.
4. In the event the expenditures related to the PEI Broadband Project
vary by plus or minus $250,000.00 from the amounts approved herein, Maritime
Electric shall be required to seek Commission approval for the variance
forthwith.
DATED
at Charlottetown, Prince Edward
Island, this 5th day of May, 2020.
BY THE COMMISSION:
J. Scott
MacKenzie, Q,C., Chair
M. Douglas Clow, Vice-Chair
Erin T. Mitchell, Commissioner
Notice:
Section 12 of the
Island Regulatory and Appeals Commission Act
reads as follows:
12.
The Commission
may, in its absolute discretion, review, rescind or vary any order or decision made by it,
or rehear any application before deciding it.
Parties to this proceeding seeking a review of the
Commission's decision or order in this matter may do so by filing with the Commission, at
the earliest date, a written Request for Review,
which clearly states the reasons for the review and the nature of the relief sought.
Sections 13.(1),
13(2), 13(3), and 13(4) of the
Act provide as follows:
13.(1) An appeal lies from a decision or order of
the Commission to the Court of Appeal upon a question of law or
jurisdiction.
(2) The appeal shall be made by filing a notice of
appeal in the Court of Appeal within twenty days after the decision or
order appealed from and the rules of court respecting appeals apply with
the necessary changes.
(3) The Commission shall be deemed to be a party
to the appeal.
(4) No costs shall be payable by any party to an
appeal under this section unless the Court of Appeal, in its discretion,
for special reasons, so orders.
NOTE:
In accordance with IRAC's Records
Retention and Disposition Schedule, the material contained in the official
file regarding this matter will be retained by the Commission for a period
of 5 years.
|
|
|