The New Brunswick Energy and Utilities Board (EUB) has issued a favourable decision related to the refurbishment of NB Power's Point Lepreau nuclear generating station.
The board approved NB Power's financing costs, the levelised method of amortisation of the deferral account, and the recovery of the balance in charges, rates and tolls charged by distribution companies (Disco).
With respect to the financing costs, NB Power has proposed a change requesting that the financing rate be based on its entire long term debt portfolio. Accepting the company's proposed method of calculation, the board has approved the financing rate of 4.55% for the fiscal year 2013-2014.
NB Power has presented four methods to the board with respect to the amortisation methodology including straight line amortisation, levelised recovery, production related method, and levelized production-related methods and the board has approved levelized method of amortisation.
The final issue in case is the recovery of the balance of the deferral account by Disco over the operating life of the refurbished Point Lepreau plant and the reflection of the balance in the deferral account in the charges, rates and tolls charged by Disco.
In its testimony before the board, NB Power, as evidence to demonstrate recovery, has filed its forecast for the 2013-2014 year that includes a breakdown of revenues and costs, and submitted the revenues and costs from fiscal year 2007-2008, for comparative purposes.
The board has accepted the NB Power's evidence demonstration and found that there is sufficient revenue for recovery of the allocated amount of the deferral account in the current test year, 2013-2014.
NB Power CEO and president Gaetan Thomas said the company's customers will not see any increases in rates going forward as a result of the Point Lepreau refurbishment project.
"The costs related to Lepreau have been fully accounted for in our projections, and we intend to recover these costs through equal payments - similar to a home mortgage - made monthly during the 27-year life of the plant," said Thomas.
Image: Point Lepreau Generating Station. Photo: courtesy of CANDU Owners Group.