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NEWFOUNDLAND AND LABRADOR
REGULATION 119/13

Maritime Link Exemption Order
 
under the
Electrical Power Control Act, 1994
and the
Public Utilities Act
(O.C. 2013-349)

(Filed November 29, 2013)

Under the authority of section 5.2 of the Electrical Power Control Act, 1994 and section 4.1 of the Public Utilities Act, the Lieutenant-Governor in Council makes the following Order.

Dated at St. John’s , November 29, 2013.

Julia Mullaley
Clerk of the Executive Council

ORDER

Analysis



Short title

        1. This Order may be cited as the Maritime Link Exemption Order .

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Interpretation

        2. (1) In this Order

             (a)  "ECA" means the Energy and Capacity Agreement dated July 31, 2012;

             (b)  "energy corporation" means the corporation defined in the Energy Corporation Act;

             (c)  "forgivable event" means

                      (i)  an event of force majeure,

                     (ii)  a planned maintenance period,

                    (iii)  a suspension of delivery of energy and capacity or of acceptance of energy and capacity, in order to safeguard life or property by making repairs to the facilities, or

                    (iv)  an action required to be taken to comply with good utility practice;

             (d)  "Maritime Link" means

                      (i)  the Maritime Link AC facilities, and

                     (ii)  the Maritime Link DC facilities;

             (e)  "Maritime Link AC facilities" means the following assets to be constructed which will form part of the Maritime Link:

                      (i)  the Bottom Brook 230 KV terminal station,

                     (ii)  the Granite Canal 230KV switchyard, and

                    (iii)  the 230 KV transmission line from the Granite Canal switchyard  to the Bottom Brook 230kV terminal station;

              (f)  "Maritime Link DC facilities" means the following assets to be constructed which will form part of the Maritime Link:

                      (i)  HVDC transmission lines from the Bottom Brook Converter Station to the Cape Ray Transition Compound,

                     (ii)  submarine cables from the Cape Ray Transition Compound to Cape Breton ,

                    (iii)  the Bottom Brook converter station,

                    (iv)  the Cape Ray transition compound, which transitions the transmission line described in subparagraph (i) from overhead to underground,

                     (v)  the shore line grounding station located at Port Harmon, and associated grounding line from the Bottom Brook convertor station to the grounding station, and

                    (vi)  the AC lines connecting the Bottom Brook converter station to the Bottom Brook 230Kv terminal station;

             (g)  "NSPML" means NSP Maritime Link Inc.; and

             (h)  "subsidiary" means a subsidiary of the energy corporation as that term is used in the Energy Corporation Act .

             (2)  In this order, references to a corporation, where the corporation does not exist as of the date of this order coming into force, shall be valid upon the creation of the corporation under the Energy Corporation Act and the Corporations Act .

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Public utilities

        3. Muskrat Falls Corporation and NSPML are acknowledged to be public utilities under the Public Utilities Act for the purpose of this Order.

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Exemption, Muskrat Falls Corporation

        4. (1) Muskrat Falls Corporation or another subsidiary is exempt from the application of the following sections of the Electrical Power Control Act, 1994 :

             (a)  sections 16, 17 and 18, for all aspects of its activities pertaining to firm and non-interruptible commitments under the ECA; and

             (b)  section 19, for all aspects of its activities pertaining to the ECA, to the extent that an action taken by the Muskrat Falls Corporation or a subsidiary to give effect to an order made or exercised by the emergency controller shall not be protected by the operation of section 19, and shall be subject to the remedies under the ECA or be considered a breach of the ECA, according to the terms of that agreement.

             (2)  Notwithstanding paragraph (1)(a), sections 16, 17 and 18 of the Electrical Power Control Act, 1994 shall apply to Muskrat Falls Corporation or another subsidiary in the event that

             (a)  the Lieutenant Governor in Council appoints an emergency controller under subsection 16(5) of the Electrical Power Control Act, 1994 for an actual emergency due to actual damage to, destruction, failure, or breakdown of, works, plant or equipment or distribution facilities used in the generation or transmission of power; and

             (b)  the emergency controller issues an order under paragraph 16(2)(d) of the Electrical Power Control Act, 1994 which

                      (i)  curtails the delivery of all energy supplied to the province on a non-firm and interruptible basis, excluding imports, before curtailing the delivery of energy supplied to the province on a firm and non-interruptible basis,

                     (ii)  curtails proportionately firm and non-interruptible commitments to deliver energy and capacity to the province, excluding imports, and

                    (iii)  curtails proportionately firm and non-interruptible commitments to deliver energy and capacity from the Muskrat Falls plant.

             (3)  This section applies to the Muskrat Falls Corporation or a subsidiary

             (a)  where the subsidiary is a public utility;

             (b)  where the ECA is transferred to the Muskrat Falls Corporation or that subsidiary; and

             (c)  from the day that energy and capacity is first delivered under the ECA until a day 35 years later, unless the initial term of the ECA is extended due to a forgivable event, but shall not apply to extensions or subsequent terms to the ECA.

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Exemption, subsidiary

        5. (1) A subsidiary is exempt from section 10 of the Electrical Power Control Act, 1994 for all aspects of its activities pertaining to the Energy Access Agreement, dated October 18, 2013, to the extent that an action taken by the subsidiary to give effect to an order made or exercised by the Public Utilities Board shall not be protected by the operation of section 10, and shall be subject to the remedies under that agreement or be considered a breach of that agreement, according to the terms of that agreement.

             (2)  This section applies

             (a)  where the subsidiary is a public utility;

             (b)  where the Energy Access Agreement is transferred to that subsidiary; and

             (c)  for the term of the Energy Access Agreement, but shall not apply to extensions or subsequent terms to the Energy Access Agreement.

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Exemption, NSPML

        6. (1) NSPML is exempt from the application of the following sections of the Public Utilities Act :

             (a)  sections 13, 36, 39, 41, 43, 48, 58, 59, 64, 68, 69, 71, 80, 82 and 91, for all aspects of its activities pertaining to the Maritime Link;

             (b)  section 70, with respect to energy exported from the Province over the Maritime Link; and

             (c)  sections 38 and 53, in relation to the Maritime Link DC Facilities.

             (2)  The exemptions in this section apply to the extent that NSPML is not recovering costs from ratepayers in the province.

(Includes correction of December 6, 2013)