The construction of new power lines to provide electricity service to cottage areas and other remote locations is regulated by the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB). There may be additional costs of extending service lines to cottage areas, primarily due to the distance of these properties from existing power lines, making them more costly to build and serve. Cottage owners are responsible for covering the additional costs associated with the construction of these power lines.
The PUB approved Contribution in Aid of Construction (CIAC) policy provides a procedure for handling electricity service extensions to customers whose properties exceed the standard distance from existing power lines.
Under the CIAC policy, an estimate of the overall costs of supplying electricity to the cottage area is calculated to determine the cost per cottage owner. The PUB requires that at least 50% of the cottage owners return an application with their down payment before the Company can request approval to provide electricity service to the area.