Notice Notice of Hearing
NOTICE OF HEARING
Northwest Territories Public Utilities Board
Re: Applications for Approval of the Purchase and Sale of the Hay River Franchise Property
The Board is in receipt of applications from Northland Utilities (NWT) Limited (Northland or NUL), Northwest Territories Power Corporation (NTPC) and the Town of Hay River with respect to the purchase and sale of the Hay River franchise assets. The parties involved in the purchase and sale of the Hay River Franchise transaction are Northland (Seller), the Town of Hay River who would purchase the franchise and sell the same to NTPC and NTPC would be final owner and operator of the Hay River franchise.
Northland Requested as follows:
• Approval to: (i) discontinue operation under the Hay River Franchise Agreement (the “Franchise”) pursuant to Section 66 of the PUA, and (ii) dispose of the Franchise assets (the “Franchise Assets”) pursuant to Section 68 of the PUA.
• Recovery of approximately $1.4 million in reasonably and prudently incurred utility costs (the “Disposition Costs”) arising from the discontinuation of the Franchise and the disposition of the Franchise Assets (collectively, the “Hay River Disposition”). Northland submitted that it is both appropriate and necessary for the Board to consider, and approve, Northland’s request for recovery of the Disposition Costs.
The Town Requested as follows:
• Approval for the disposition of the Hay River Franchise property from Northland Utilities (NWT) Ltd. (“NUL”) to the Town, in accordance with the Town’s rights to acquire the same pursuant to subsection 91 (5) of the Cities Towns and Villages Act, SNWT 2003, c 22, Sch B (“CTV Act”)
• Approval to dispose of the Hay River franchise assets newly acquired from NUL to NTPC as of the effective date of the closing of the Agreement with NUL, also being the closing date of the Purchase and Sale Agreement with NTPC (NTPC/Town Agreement”); and
• Approval that for all other matters connected with the transient ownership of the noted assets, the Town is to be declared to be not a public utility, pursuant to subsection 18(1) of the Act.
NTPC requested as follows:
• Approval for Acquisition: NTPC will be acquiring assets and seeking additions to NTPC’s Rate Base that exceeds $5 million. NTPC therefore seeks approval under Section 54 for a Project Permit. NTPC also seeks approval under section 49(1) of a Rate Base for the overall complement of franchise assets and investments at $10.7 million, comprising the net book value of the purchased assets, purchase premium and the transaction cost, as of the date of transfer. In addition, NTPC will be acquiring $3.3 million in new capital assets, for a total rate base on $14.0 million.
• Approval of Retail Rate Schedules: NTPC will begin serving retail customers within the Hay River town boundaries. This will require the application of retail rates. The rate schedules will require approvals under Sections 43 and 45. For the most part, these rate schedules equal or parallel the rates presently before the Board as part of NTPC’s GRA Compliance Filing for the Taltson system (i.e., Fort Smith).
• Approval of Interim Wholesale Rate Schedule: NTPC will be initiating a new wholesale service to NUL at three delivery locations not previously served directly by NTPC (to permit NUL to continue to service the Small Communities). Unlike the existing wholesale service to NUL, this will be a firm service (hydro backed up by diesel) more akin to the power delivered to NUL in Yellowknife.
Purchase and Sale of Hay River Assets Process Steps Date
Information Requests to Applicants 02-Jun-23
Information Responses from Applicants 21-Jun-23
Filing of Intervener Evidence 07-Jul-23
Information Requests to Interveners 20-Jul-23
Information Responses from Interveners 04-Aug-23
Applicants Rebuttal 17-Aug-23
Hearing Commencement (Tentative) 30-Aug-23
Reply Argument TBD
If you wish to intervene or simply comment on the applications, you may write to the Board as per below, by April 17, 2023, stating your name, contact details, whom you are representing, the reasons for your objections or support for the applications and your expected level of participation in the proceedings:
Board Secretary, 203-62 Woodland Drive, Box 4211, Hay River, NT X0E 1G1
Further details respecting the applications, the schedule and the intervention process re set out in the Board’s website at www.nwtpublicutilitiesboard.ca. If there are any questions please contact the Board secretary, Ms. Doris Minoza at 867-874-3944.
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