Notice of Application

Maritime Electric Company, Limited seeks approval of rates,
tolls and charges for electric service, effective
March 1, 2019.

TAKE NOTICE that Maritime Electric Company, Limited ("Maritime Electric" or the "Company") has filed an application with the Island Regulatory and Appeals Commission ("IRAC" or the "Commission") seeking, among other things, to implement rates, tolls and charges for electric service for the period from March 1, 2019 to February 22, 2022 (the "Application").

BACKGROUND
By Commission Order UE16-04, dated February 29, 2016, the Commission approved the rates, tolls and charges for electric service for the period from March 1, 2016 to February 28, 2019. Maritime Electric has now filed an application with the Commission seeking the approval of rates, tolls and charges for electric service for the three year period from March 1, 2019 to February 28, 2022.

DETAILS
Maritime Electric is seeking to increase the rates, tolls and charges for electric service commencing March 1, 2019. The Company is proposing an annual increase of 1.1% in each of the next three years for a typical customer in the Residential, General Service, Industrial and other rate classes. The overall annual impact for individual customers in a given rate class will differ to the extent that their consumption differs from the typical customer in that class.

In addition to the approval of rates, tolls and charges for electric service, Maritime Electric is seeking approval of a target Return on Average Common Equity of 9.35%, together with the implementation of an Earnings Sharing Mechanism. The Earnings Sharing Mechanism would result in an allowed Return on Average Common Equity of +/- 50 basis points, resulting in a proposed range of 8.85% to 9.85%.

Maritime Electric has also proposed changes to its rate classes, including the elimination of differential service charges for urban and rural customers in the Residential rate class, and the phasing out of the Residential second block rate.

The Application also incorporates certain findings and recommendations made in the Point Lepreau Cost Allocation Classification Study, Charlottetown Thermal Generating Station Decommissioning Study, 2017 Depreciation Study, 2017 Cost Allocation Study, and the Annual Update to Interim Weather Normalization Reserve.   

HOW TO SEE THE APPLICATION
The information contained in this Notice is an overview only and is not comprehensive. A complete copy of the application can be viewed by clicking here. Any person wishing to obtain a paper copy of the filing can do so by writing to Maritime Electric at the address below.

HOW TO COMMENT AND ASK QUESTIONS
The Commission invites public input and participation with respect to the Application.  

Persons seeking further information with respect to the Application may pose written questions to Maritime Electric by sending their questions to the Company at the address below. All questions and responses must be filed with the Commission.  

Interested persons may provide written comments on the Application to the Commission at the address provided below.  

Any person or organization wishing to have formal standing to present evidence under oath or to cross-examine witnesses may apply to the Commission for intervener status in accordance with the Rules of Practice & Procedure for Commission Hearings. In order to be considered, applications for intervener status must be made in writing and received by the Commission no later than 4:00 pm on January 18, 2019. 

All questions posed and comments received in relation to the Application will be made public on the Commission website at www.irac.pe.ca.

A public hearing will be held with respect to the Application. A Notice of Hearing will be published once hearing dates have been set.  The Commission also invites interested persons to make verbal submissions as part of the public hearing. Individuals who would like to make a verbal submission must register with the Commission at the address below.

FOR ADDITIONAL INFORMATION
Additional information with respect to the Application can be obtained by contacting Maritime Electric at 902-629-3756. Written communications should be forwarded to:

Jason Roberts, CPA, CA Vice-President, Finance & Chief Financial Officer Maritime Electric Company, Limited P.O. Box 1328 Charlottetown, PE C1A 7N2

Cheryl Mosher, CPA, CA Regulatory Services Island Regulatory & Appeals Commission P.O. Box 577 Charlottetown, PE  C1A 7L1 email: cmosher@irac.pe.ca

DATED at Charlottetown, Queens County, Province of Prince Edward Island, this 19th day of December, 2018.

Posted: 2018/12/21