Network Additions Policy (Labrador Interconnected System)

March 2021

Overview

The Labrador Network Additions Policy (NAP) will take effect in April 1, 2021, per Order No. P.U. 7(2021) of the province’s Board of Commissioners for Public Utilities (the Board).

The objective of the NAP is 1) to protect existing LIS ratepayers by limiting rate increases associated with significant investment in new transmission assets required to serve new load requests, and 2) to achieve a reasonable balance in the sharing of the benefits and the costs of these system investments between new and existing customers.

The NAP guides how costs are allocated when new requests for larger quantities of power on the Labrador Interconnected System (LIS) require substantial transmission infrastructure builds or upgrades. It provides parameters for determining contribution requirements from LIS customers for: 1) transmission system extensions to enable connection of new customers; and 2) demand requirement requests from existing and potential new customers that, immediately or over time, may contribute to transmission network extensions or upgrades. The NAP will also be applied to determine the contributions required from new transmission customers requesting open access transmission service.

The NAP does NOT apply to customer contributions required for distribution extensions or upgrades. The Contribution In Aid of Construction Policy, approved by the Board, will continue to apply in determining the contributions required in these circumstances.

Summary of NAP Approach to Charging for Load Additions

Customer contributions will include Upstream Capacity Charges based on the applicant’s requested peak demand. A summary of the cost assignment approach is as follows:

• For peak loads of up to 200 kW | No Upstream Capacity Charge is required.
• For peak loads of 200 kW to 1500 kW | The Upstream Capacity Charge will be calculated based on the approved expansion cost per kW multiplied by the applicant’s projected peak demand that is in excess of 200 kW.
• For peak loads greater than 1500 kW | If the request would not require acceleration of the Transmission Expansion Plan, the Upstream Capacity Charges would be calculated in the same way as it is for peak loads of 200 kW to 1500 kW. If acceleration of the Transmission Expansion Plan would be required to serve the applicant, the Upstream Capacity Charge would reflect the cost of system expansion net the value of future revenues from supplying the load addition to the applicant.

Applicants may be required to provide a security deposit to justify the provision of the revenue credit used in the calculation of the Upstream Capacity Charge.

Payment of the Upstream Capacity Charge will be required from the applicant in advance of the provision of service and in advance of the construction of new transmission facilities to supply the applicant’s load requirements..

Exceptions

Exceptions from the NAP may be permitted for service requests that meet a defined public service need in the community, e.g. emergency services, medical clinics, daycare centers, grocery stores, gas stations. In these cases, Hydro is required to receive Board approval prior to deviating from the requirements of the NAP.

Estimated Timelines

Implementation of the NAP is ongoing and will take time as the process for identifying and carrying out required network additions progresses through various stages, including conducting system impact analyses, approval of regulatory applications, and completion of capital work. The projected timeline below is subject to change.

 

 

 

Network Additions Policy – Labrador Interconnected System  (CLICK TO VIEW POLICY)

 

 

 

 

 

 

 

 

 

For more information: 

Robert Coish
e: robertcoish@nlh.nl.ca