UE20927

MARITIME ELECTRIC COMPANY, LIMITED 

JANUARY 1, 2001 RATE INCREASE

TAKE NOTICE that Maritime Electric Company, Limited ("Maritime Electric" or the "Company" ) has filed with the Commission a Tariff of Rates and Charges for effect on January 1, 2001. The Tariff represents a rate increase of 4.53% over current rate levels and will be implemented on January 1, 2001. 

The Maritime Electric Company Limited Regulation Act (the "Act" or "legislation"), the current legislation under which Maritime Electric operates, allows the Company to implement rate changes without the prior approval of the Commission. The Act does, however, give the Commission authority to review any rate change and, if the Commission determines that the rate change does not comply with the legislation, to require a refund.    

Since January 1, 1998, Maritime Electric's rates have been set at 10% above the rates charged by NB Power to NB Power's customers in New Brunswick. The Act requires that rates be maintained at that level subject only to Section 11 of the Act which reads as follows: 

11. (1) For the purpose of this Act, the amount that would be payable if customers were served in New Brunswick by the New Brunswick Power Corporation shall be adjusted to the extent necessary to remove any subsidy or the benefit of any subsidy which is provided directly or indirectly by any government or governmental agency to reduce the cost of electricity in New Brunswick to customers generally, or to particular customers or classes of customers, and the amount used as the amount that would be payable is the sum of the amount that is payable, and the subsidy or the benefit thereof.

    (2) For greater certainty, any reduction in the cost of service inherent in the status of the New Brunswick Power Corporation as a Crown corporation in New Brunswick does not, in itself, constitute a subsidy within the meaning of subsection (1).

In its submissions to the Commission respecting the January 1, 2001 rate increase, the Company argues that NB Power's rates are being subsidized by the Government of New Brunswick. More specifically, the Company submits that a write down of some 450 million dollars of the accounting value of the Point Lepreau nuclear generating station constitutes a subsidy in that NB Power's customers have been relieved of having to pay, through rates, the 450 million dollars. According to the Company, the write down, which is supported by the New Brunswick Government, reduces the cost of electricity for consumers in New Brunswick and is therefore a subsidy. The January 1, 2001 rate increase represents the Company's calculation of the level of subsidy.

 A complete copy of the Company's submissions may be viewed at the offices of the Commission at the address below or at any of the Company's business offices in Charlottetown, Roseneath or Sherbrooke.

PUBLIC HEARING

A public hearing into the rate increase will commence at 9 :00 A.M. on Tuesday, January 30, 2001 in the Commission's Main Hearing Room, 5th Floor, National Bank Tower, 134 Kent Street in Charlottetown, and will continue at such times as will be announced at the hearing.

HOW TO PARTICIPATE

Any person wishing to make a submission to the Commission or to participate in the public hearing is asked to notify the Commission by Monday, January 15, 2001. Persons planning to make a presentation at the hearing or to participate in the hearing process as an intervener are asked to file with the Commission copies of any written material they intend to rely on by Monday, January 22, 2001.  

The Commission will also consider written submissions from interested parties. While it is not necessary to appear at the hearing, parties are encouraged to present their comments in person.  

FOR ADDITIONAL INFORMATION 

Additional information on the rate increase can be obtained by contacting Maritime Electric at 629-3628.  Additional information on the filing of submissions and the public hearing process can be obtained by contacting Donna Chandler or Donald G. Sutherland of the Commission at 892-3501 or PEI toll-free 1-800-501-6268. 

Written communications should be forwarded to: 

DATED AT Charlottetown, this 28th day of December, 2000.

Posted: 2001/01/02