Newfoundland Power applies for rate hike9/14/2012
Newfoundland Power wants to increase current electricity rates by an overall average of six per cent, with residential customers getting an even bigger hit.
The utility filed an application with the Public Utilities Board on Friday.
The rate increase, if approved, would be effective March 1, 2013.
The proposed average increase ranges from 0.6 per cent to six cent for commercial categories to 7.2 per cent for residential customers.
“We work hard to minimize the impact of rate increases on our customers while balancing the need to maintain and extend the electricity system to provide our customers with safe, reliable service,” Earl Ludlow, president and CEO of Newfoundland Power, said in a press release.
“We remain committed to investing in rural areas of the province while at the same time investing in urban areas where demand for new services continues to grow.”
According to Newfoundland Power, 93 per cent of the electricity the company delivers to its customers is purchased from Newfoundland and Labrador Hydro.
Newfoundland Power says cost increases largely reflect increased purchases from Hydro to meet greater usage of electricity by customers.
“Over the past five years alone, we have invested over $350 million in our provincial electricity system,” Ludlow said.
“Establishing a fair and reasonable future return on this investment is another component of this rate increase.”