N.L. Power rates will rise 7 per cent on July 1
Increase would have been more than double had rate lowering efforts not occurred, PUB says
Power rates in Newfoundland and Labrador will go up by an average of seven per cent effective July 1, but the province's Public Utilities Board says it would have been higher without modifications.
In a statement on Monday, the board said the increase is a reflection of Newfoundland Power's general rate application, a rate increase from Newfoundland and Labrador Hydro and adjustments of around 4.5 per cent that happen annually.
Newfoundland Power had originally proposed a 10.6 per cent rate increase in January, which was criticized by advocates and rejected by the PUB.
At the time, the PUB had asked Newfoundland Power to cut its expenses and come back with a new proposal.
In Monday's statement, the board said Newfoundland Power returned with a rate increase of 8.5 per cent once it planned for lower proposed operating costs and the exclusion of short-term incentives to its executive and directors.
The rate also accounts for the province's plan to cap residential domestic rate increases on the island of Newfoundland at 2.25 per cent annually as part of rate mitigation efforts until 2030, and an annual increase that happens each July 1 to allow Newfoundland Power to recover power supply costs.
The PUB said "rate smoothing" efforts were implemented to help increase rates more gradually, and that power rates would have increased by over 15 per cent on July 1 had the work not been done.
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