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Docket UE20724
Order UE15-01

IN THE MATTER of an application by Maritime Electric Company, Limited for approval of a 2016 capital budget, and capital budget variances for 2014.

BEFORE THE COMMISSION

on Tuesday, the 3rd day of November, 2015.

J. Scott MacKenzie, Q.C., Chair
Douglas Clow, CPA, CA, Vice-Chair
John Broderick, Commissioner
Mike Campbell, Commissioner

Order

UPON reviewing the application of Maritime Electric Company, Limited (the "Company") for approval of the Company's capital budget for the year 2016 pursuant to Section 17 of the Electric Power Act (the "Act"); 

AND UPON reviewing the Company's capital budget variance report for capital expenditures made in 2014; 

AND UPON following receipt of the application, the Commission published a notice on its website and in local newspapers inviting written questions and comments; 

AND UPON considering the Company's responses to interrogatories filed by the Commission and two members of the public; 

AND UPON considering the application, variance report and material filed and comments received from the public and the PEI Energy Corporation;

AND UPON noting that some expenditures planned for existing generation assets will need to continue until the transmission cable replacement program, currently in process, is operational;

AND UPON noting that current year expenditures planned on the transmission system include $2,884,000 for Y-104, a project previously approved in Commission Order UE12-02, and other 2016 transmission system expenditures include required substation and transmission projects to ensure safe and reliable service at transmission level;

AND UPON noting that expenditures on distribution lines are necessary to continue with the replacement of aged distribution lines, which are reaching the end of their expected life span, and on customer-driven line extensions and highway alterations;

AND UPON reviewing expenditures on corporate services and noting the required information technology and related expenditure plans appear reasonable;

AND UPON noting that the Company's orderly planned replacement of aged transmission and distribution infrastructure is in the public's best interest;

AND UPON noting that this level of expenditure may result in an increase in rate base of approximately 0.005%, which will be considered as part of any application for rate changes proposed by the Company;

AND UPON reviewing the Company's 2014 capital budget variance report which outlines that the Company spent $1,813,601 less than approved for the 2014 capital budget due to less expenditures on generation, distribution transformers, system meters, Y-104 transmission project and higher than anticipated contribution from customers for new services;

NOW THEREFORE, pursuant to the Electric Power Act;

IT IS ORDERED THAT

1.  The capital budget application of the Company, filed herein on July 30, 2015 and summarized below is approved; and

2016 Capital Budget Summary
Corporate

$1,214,000

Generation

1,215,000
Distribution

17,538,000
Transmission

10,399,000
General Expense Capitalized

494,000
Interest During Construction

200,000
Total

$ 31,060,000

Less: Contributions

(400,000)
Total (Net)

$ 30,660,000

2.  The capital budget variances reported to the Commission for capital expenditures made in 2014 are approved.

DATED at Charlottetown, Prince Edward Island, this 3rd day of November 2015.

BY THE COMMISSION:

J. Scott MacKenzie, Q,C., Chair

Douglas Clow, CPA,CA, Vice-Chair

John Broderick, Commissioner

Michael Campbell, 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.