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Docket UE20723
Order UE13-03

IN THE MATTER of the application by Maritime Electric Company, Limited for approval of the 30 Megawatt Renewable Energy Purchase Agreement.

BEFORE THE COMMISSION

on Tuesday, the 6th day of August, 2013.

Maurice Rodgerson, Chair
John Broderick, Vice-Chair (Acting)
Mike Campbell, Commissioner

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Order

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WHEREAS Maritime Electric Company Limited ("MECL") has made application for approval of the 30 Megawatt Renewable Energy Purchase Agreement ("REPA") between the PEI Energy Corporation ("PEIEC" ), Maritime Electric Company Limited ("MECL") and the Government of Prince Edward Island ("the Province"),  

AND WHEREAS the Application by MECL requests approval of the REPA and recovery of associated costs from MECL customers through the Energy Cost Adjustment Mechanism ("ECAM"),  

AND UPON accepting that the REPA, as filed in confidence with the Commission, contains proprietary information,  

AND UPON accepting the evidence filed by MECL that the REPA will result in costs over its 20-year term that will be lower than the cost of purchasing energy on the open market, and will result in approximately $6 million in present value savings to MECL customers,  

AND UPON noting that the ECAM provides a reasonable mechanism for the recovery of the costs associated with the REPA,  

AND UPON noting that the estimated pricing under the REPA is consistent with the Minimum Price Regulations, pursuant to the Renewable Energy Act;  

AND UPON accepting MECL's evidence that the purchase of supply from the Hermanville/Clearspring wind farm will increase the portion of MECL electricity sales that are supplied by wind power to approximately 25 percent of total sales,  

AND UPON concluding that the REPA reflects a fair and balanced agreement between the parties and will result in rate costs that are just and reasonable;

NOW THEREFORE, pursuant to the Electric Power Act and the Island Regulatory and Appeals Commission Act;

IT IS ORDERED THAT

1.  The REPA, as submitted by MECL on July 25, 2013, be approved; and

2.  The costs of the REPA be recovered through the ECAM.

DATED at Charlottetown, Prince Edward Island, this 6th day of August, 2013.

BY THE COMMISSION:

Maurice Rodgerson, Chair

John Broderick, Vice-Chair (Acting)

Michael Campbell, Commissioner

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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.

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.