Newfoundland Power Disappointed with Pub Ruling on Pole Deal

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Newfoundland Power Inc.'s application to acquire Aliant Telecom Inc.'s 100,000 poles in Newfoundland Power's service territory has been denied by the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB).

"We are disappointed with the ruling," says Philip G. Hughes, President and Chief Executive Officer, Newfoundland Power. "This decision has a negative impact on both our customers and our shareholders."

In its ruling, PUB acknowledged the benefits of Newfoundland Power owning the 70,000 joint use poles outlined in its proposal. Although PUB agreed financial benefits from the 30,000 non-joint use poles would flow to Newfoundland Power's customers, it concluded that based on its interpretation of legislation these poles should not be included in the Newfoundland Power's regulated assets.

"Our proposal to acquire poles in Newfoundland Power's service territory focused on improving efficiency and stabilizing rates over the long-term," says Hughes.

PUB's financial consultants concluded in its report that the analysis submitted by Newfoundland Power in support of the application appeared reasonable and appropriate.

"Over the next few days we will be reviewing our options, which include applying for only the 70,000 joint use poles or appealing the PUB ruling.

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