Order UE07-03 - Electric - Maritime Electric Company, Limited - Energy Purchase Agreement (August 16, 2007)

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Docket UE21008
Order UE07-03

IN THE MATTER of a review of the Energy Purchase Agreement between Maritime Electric Company Limited, the City of Summerside and New Brunswick Power Generation Corporation.

BEFORE THE COMMISSION
On Thursday, the 16th day of August, 2007.

Maurice Rodgerson, Chair
Weston Rose, Commissioner
Anne Petley, Commissioner

Order

WHEREAS, pursuant to the Electric Power Act (the "Act"), the Commission has reviewed and considered the October 31, 2006 Energy Purchase Agreement (the "Agreement") between Maritime Electric Company, Limited (the "Company"), the City of Summerside and New Brunswick Power Generation Corporation (NB Power);

AND WHEREAS the Commission engaged the services of KnAP Energy Consultants to assist in the review of the Agreement and to assess and comment on the reasonableness of the assumptions used by the Company in its evaluation of supply alternatives;

AND WHEREAS it appears to the Commission that the assumptions used by the Company and the process undertaken in evaluating supply alternatives were reasonable;

AND WHEREAS the Commission has concluded that the pricing contained in the Agreement compares favourably with other jurisdictions and that the Company’s decision to opt for fixed price offerings is reasonable in the circumstances;

NOW THEREFORE, pursuant to the Electric Power Act,

IT IS ORDERED THAT

1. the costs associated with the Agreement are deemed to be reasonable and prudent and recoverable through the operation of the Energy Cost Adjustment Mechanism.

DATED at Charlottetown, Prince Edward Island, this 16th day of August, 2007.

BY THE COMMISSION:

Maurice Rodgerson, Chair

Weston Rose, Commissioner

Anne Petley, 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) and 13(2) of the Act provide as follows:

13.(1) An appeal lies from a decision or order of the Commission to the Appeal Division of the Supreme Court upon a question of law or jurisdiction.

(2) The appeal shall be made by filing a notice of appeal in the Supreme Court within twenty days after the decision or order appealed from and the Civil Procedure Rules respecting appeals apply with the necessary changes.