NEWFOUNDLAND REGULATION 93/00

Abitibi-Consolidated Inc. and Abitibi Partner Exemption Order
under the
Electrical Power Control Act, 1994
and the
Public Utilities Act
(O.C. 2000-490 &
O.C. 2000-492)

(Filed October 31, 2000)

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, October 19, 2000.

John R. Cummings, Q.C.
Clerk of the Executive Council

ORDER

Analysis

        1.   Short title

        2.   Definitions

        3.   Exemption

        4.   Limitation

        5.   Extension of exemption

Short title

        1. This order may be cited as the Abitibi-Consolidated Inc. and Abitibi Partner Exemption Order.

Definitions

        2. In these regulations

             (a)  "Abitibi" means Abitibi Consolidated Inc.;

             (b)  "Abitibi partner" means any partner, co-venturer or ownership participant and includes without limitation Central Newfoundland Energy Inc., Seimens Westinghouse Limited or CHI Canada Inc., and, for greater certainty, any partnership, joint venture or unincorporated co-ownership entity formed by Abitibi and any Abitibi partner; and

             (c)  "projects " means the projects at Grand Falls and Bishop's Falls in the province as described in section 3.

Exemption

        3. Abitibi, an Abitibi partner and any lender providing financing to the projects are exempt from all of the application of the Electrical Power Control Act, 1994 and the Public Utilities Act for all aspects of their joint or several activities pertaining to

             (a)  the design, engineering, planning, construction, commissioning, ownership, operation, management and control of equipment and facilities to be comprised of

                      (i)  a new 27 megawatt turbine/generator and all associated facilities, including without limitation trashrack, intake structure, steel roller gate, penstock and powerhouse, at Abitibi's hydroelectric generating facilities at Grand Falls, and

                     (ii)  new turbines/generators to replace existing units and all associated upgrading of Abitibi's hydroelectric generating facilities at Bishop's Falls, including without limitation re-runnering existing turbine modifications to existing governors, rewinding generators for 60 HZ generation, upgrading station auxiliaries and rehabilitating structures;

             (b)  producing, generating, storing, transmitting, delivering or providing electric power and energy to or for Abitibi or Newfoundland and Labrador Hydro for compensation from the projects;

             (c)  negotiating, concluding and executing any and all agreements for activities referred to in paragraph (b);

             (d)  raising and securing funds necessary to construct the projects' facilities to generate or transmit power that is the subject of any power sale or distribution agreements, including without limitation the negotiation, conclusion and execution of any and all agreements and security documentation with any lender providing that financing to the projects; and

             (e)  any agreements, contracts or instruments necessary or incidental to any activity described in this exemption.

Limitation

        4. This exemption shall not apply or extend to any Abitibi partner or any partnership which has previously operated or at any time after the publication of this order commences operations other than in respect of the projects as a utility regulated under the Electrical Power Control Act, 1994 and the Public Utilities Act. 

Extension of exemption

        5. This exemption extends to the successors of the parties described in this order, provided that to extend to a successor of Abitibi other than a partnership, that successor must be a successor to both the pulp and paper mill at Grand Falls, and the electrical generation facilities or plants at Grand Falls and Bishop's Falls.

©Earl G. Tucker, Queen's Printer