Electricity Rates Changing for Most Customers, Effective August 1, 2024
August 1, 2024
Rates for our Island Interconnected, L’Anse au Loup and Isolated Rural customer rates are changing, effective August 1, 2024. Rates will increase between 3.6% and 6.8% for residential customers and between 7.0% and 8.3% for commercial customers. Rates for customers in Labrador Diesel Systems and in L’Anse au Loup are adjusted for the Northern Strategic Plan. There is no change to rates for Labrador Interconnected customers.
Rates are adjusted annually to reflect changes in the cost to deliver electricity to customers. The rate change is required to recover the cost to provide that service, as well as that of Newfoundland Power.
This adjustment also reflects Government’s rate mitigation plan. All island interconnected customers receive this rate mitigation benefit.
For most residential customers, this means Hydro’s annual rate increase is now limited to 2.25% up to and including 2030. Without rate mitigation, rates would have almost doubled.
We know customers are concerned about the rising cost of living, including electricity rates. We are striving to limit cost increases to customers. That is always top of mind as we work to provide safe, cost-conscious and reliable services while meeting our commitment to a net-zero electricity system.
July 11, 2024
It’s a time of transition for our electricity system, and it’s our responsibility to guide our province forward. Every utility across Canada is planning for what’s needed. Hydro too, has put great thought and analysis into how we will continue to reliably serve customers for the next decade, and beyond.
Tuesday, we filed our 2024 Resource Adequacy Plan with the Public Utilities Board Newfoundland and Labrador (PUB), which is a continuation of our planning process. The plan provides an in-depth analysis of how much electricity customers will need over the next ten years and the best resource options to satisfy those growing needs. It’s our plan to power the province.
While the 2024 Resource Plan focuses on meeting forecasted growth for the Island and maintaining reliability for Island customers, significant work is ongoing to address the incredible energy opportunities throughout Labrador.
What has changed?
Public policy is rapidly shifting the energy sector at a velocity that hasn’t been seen since the 50s and the 60s. This accelerating shift has driven industrial and commercial growth, electrification of vehicles, and a switch from oil to electric home heating.
Since the original filing in 2018, our mandate has also expanded to reflect sustainability considerations. We are now balancing cost, reliability, and the environment in our decisions. This is our legislated obligation.
We are doing things differently and considering the lessons learned from Muskrat Falls. We are listening to our customers, and working hard to not overbuild which adds unnecessary cost. We looked at the minimum investment required, which reflects the slowest decarbonization trend and, therefore, the least investment and least impact on cost. Additional investment may be required, but we are carefully analyzing our needs to ensure we make the right investments at the right time.
Quick Facts:
- The total energy use on the island was almost 8 terrawatt hours (TWh) in 2023. By 2034, it’s expected to increase by 16 per cent for the island alone.
- Based on the minimum investment required, we need at least 385 MW of additional capacity and 1.4 TWh of new energy by 2034 to address load growth and reliability needs.
- It’s imperative that Hydro continue to analyze the “Expected Case” which requires 525 MW of additional capacity and 1.8 TWh of additional energy instead of 385 MW and 1.4 TWh.
- We are advancing the three frontrunners for supply options in order to begin to meeting demand and ensure reliability for customers.
July 1, 2024
Electricity rate adjustments are typically implemented on July 1 of each year for Island Interconnected, L’Anse au Loup and Isolated Rural customers. This year, we do not expect for any rate change to come into effect before August 1.
The Public Utilities Board Newfoundland and Labrador (PUB) regulates the electrical utilities in our province. All rates must be approved by the PUB.
This year, rate applications by Hydro, as well as Newfoundland Power were submitted following the Province’s sharing of the Muskrat Falls rate mitigation plan. The PUB is now reviewing these applications.
We understand customers continue to be concerned about electricity rates. Our priority is to provide safe, cost-conscious and reliable services while meeting our commitment to a net-zero electricity system.
Update July 4, 6:30 pm
Fire status remains as “Being Held”
Forestry Officials advise the fire outside Churchill Falls, Fire #607, remains as ‘Being Held’. For ongoing fire status updates, please refer to the Province’s Active Fires Dashboard.
Evacuation Order has been lifted, re-entry ongoing
In consultation with Forestry and following Hydro’s assessment of health and safety considerations, the evacuation order is lifted and the processing of re-entry is ongoing. As with all of our decisions related to the evacuation, this decision was made with the safety of our employees first and foremost.
To our people:
Our colleagues and their families from Churchill Falls are asked to visit churchillfalls.ca for important information about re-entry, available town services and any special instructions upon returning home. Critical services such as water and sewer are in place, but it may take longer for some services to return to normal operations.
We anticipate that with current and forecasted conditions the fire status may change to ‘Under Control’ in the coming days. Out an abundance of caution we are asking that upon returning, everyone please remain prepared as the situation could still change while the fire remains categorized as ‘Being Held’. While this is not expected, it’s important that we remain vigilant.
To all:
As we continue to support our colleagues and their families as they return to Churchill Falls, we acknowledge the incredible outpouring of support for this community. From every corner of our organization, people have been reaching out, sharing their concern, offering and providing generous assistance. Churchill Falls is a special place and many others now see what we’ve known for many years.
There will be many thanks in the days and weeks to come, but we do wish to acknowledge our Government colleagues. Those in leadership, those planning the fire response and certainly those directly fighting the fires, we saw their determination to get these fires under control. We are so grateful for them all. This has been an inspiring provincial and national response.
Re-entry is an important milestone, but it will take several days to bring operations, the town and community services back to normal. To our own teams–everyone working to get people home safely and fully restore the plant and community, we cannot thank you enough. Please know that your continued dedication is appreciated by so many.
Further public updates:
We will now shift to provide updates if there is a change in fire status or if there is critical information to share.
Update July 3, 6:55 pm
Fire status updated to “Being Held”
Forestry Officials advise the status of the fire outside Churchill Falls, Fire #607, is changed to ‘Being Held’. “Being Held” status means that ‘with currently committed resources, sufficient action has been taken to prevent fire spread beyond existing or predetermined boundaries’.
The next potential change in status would be to Under Control which means ‘a wildfire has received sufficient suppression action to ensure no further spread of the fire’.
For ongoing fire status updates, please refer to the Province’s Active Fires Dashboard.
Evacuation Order has been lifted
In consultation with Forestry and following Hydro’s assessment of health and safety considerations, the evacuation order is lifted. There are no concerns with air quality.
We anticipate that with current and forecasted conditions the fire status may change to ‘Under Control’ in the coming days. Out an abundance of caution we are asking that upon returning, everyone please remain prepared as the situation could still change while the fire remains categorized as ‘Being Held’. While this is not expected, it’s important that we remain vigilant.
To our people:
We recognize everyone is eager to return to your homes and the tight knit community you know so well. For those in need of travel, our People Care Centre will contact you to make preparations based on the information provided following evacuation. We appreciate everyone’s understanding over the next few days as it will take some time to reach everyone. We encourage anyone in close proximity of Churchill Falls to please wait until morning to drive safely back to Town.
Please visit churchillfalls.ca for important information about re-entry, available town services and any special instructions upon returning home. Critical services such as water and sewer are in place, but it will take time to fully stock the grocery store, and to ensure all other support services such as daycare, mail delivery etc. are in place.
We thank our teams on the ground and all of our employees and their families for their continued patience. We know this has been an uncertain time and we’re working hard to ensure your safety as we transition everyone back to their homes.
To travellers, tourists and media:
We ask for your patience and understanding as our employees and their families return to the community of Churchill Falls. Please note that it may take several days for all town services to return to normal operation.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update July 2, 6:50 pm
To our people:
The evacuation order for the Town of Churchill Falls remains in effect, and we appreciate your cooperation in adhering to this direction for the safety and well-being of all. Only designated critical staff have access to the town at this time.
We continue to receive regular updates from provincial forestry officials and take their guidance as we continue to monitor when it may be safe for people to return home. Safety continues to be first priority and we appreciate your patience.
Fire status:
Forestry officials continue with monitoring and suppression activity. The fire remains at level one, and has not moved closer to the town (approx. 3-4 kms away). For the latest fire status, please refer to the Province’s Active Fires Dashboard.
To travellers & tourists:
A reminder to anyone travelling on the Trans Labrador Highway that there is no access to the Town of Churchill Falls, and service stations and other services in town are not available currently. Plan accordingly and ensure your vehicle is fueled or charged before using the TLH. Please be aware that the evacuation order for Churchill Falls remains in effect, and it applies to residents and visitors/ travellers alike.
To our customers:
While there are no power interruptions anticipated at this time, there continues to be an elevated risk of outages for all customers in Labrador while active wild fires continue to burn near transmission lines in both Labrador and Quebec. Hydro is taking actions to minimize this risk, where possible. However, it is advisable to be prepared for the possibility of outages. Please follow our website and social media (@NLHydro) for the latest information.
Labrador City power supply: As of earlier this evening, the remaining customers in Labrador City who had been receiving power via Hydro Quebec temporarily are now switched back to normal connection and supply from Churchill Falls.
Our next scheduled update will be tomorrow evening (July 3).
Update July 1, 5:55 pm
To our people:
A reminder to our Churchill Falls friends and colleagues, you can reach out any time to our People Care Centre if you require any assistance (709-733-5343 or PeopleCareCentre@nlh.nl.ca).
The evacuation order for the Town of Churchill Falls remains in effect, and we appreciate your cooperation in adhering to this direction for the safety and well-being of all. Only designated critical staff have access to the town at this time.
We understand everyone is anxious for information regarding the time frame for lifting of the evacuation order. We are working in close collaboration with Forestry and are taking their guidance as to when it may be safe for people to return. Although the fire remains unchanged as of today, Forestry are monitoring the latest forecast conditions, as the situation can change quickly. We must ensure the ongoing safety and health of critical personnel currently in town and for everyone before having residents and employees return.
Fire status:
Forestry officials continue with monitoring and fire suppression activity. The fire remains at level one, and has not moved closer to the town (approx. 3-4 kms away). For the latest fire status, please refer to the Province’s Active Fires Dashboard.
To travellers & tourists:
A reminder to anyone travelling on the Trans Labrador Highway that there is no access to the Town of Churchill Falls, and service stations and other services in town are not available currently. Plan accordingly and ensure your vehicle is fuelled or charged before using the TLH. Please be aware that the evacuation order for Churchill Falls remains in effect, and it applies to residents and visitors/ travellers alike.
To our customers:
While there are no power interruptions anticipated at this time, there continues to be an elevated risk of outages for all customers in Labrador while active wild fires continue to burn near transmission lines in both Labrador and Quebec. Hydro is taking actions to minimize this risk, where possible. However, it is advisable to be prepared for the possibility of outages. Please follow our website and social media (@NLHydro) for the latest information, or contact our customer service team at 1-888-737-1296.
Labrador City – Some customers in Labrador City continue to receive power via Hydro Quebec. We will advise customers when we are ready to re-establish full connection to Churchill Falls supply, as this will require a brief planned power interruption (20-30 minutes).
Our next scheduled update will be Tuesday evening (July 2).
Update June 30, 5:50 pm
To our people:
A reminder to our Churchill Falls friends and colleagues, you can reach out any time to our People Care Centre if you require any assistance (709-733-5343 or PeopleCareCentre@nlh.nl.ca).
The evacuation order for the town remains in effect, and we appreciate your cooperation in adhering to this direction for the safety and well-being of all. Only critical staff continue to have access to the Town of Churchill Falls at this time. We are currently working on changeover of people with a second shift of critical personnel. These team members have been notified and we will reach out directly to anyone needing to be called back to work.
We understand everyone is anxious for information regarding the time frame for lifting of the evacuation order. We assure everyone that we are working in close collaboration with Forestry and are taking their guidance as to when it is safe for people to return. Although the fire remains unchanged as of today, Forestry are monitoring a forecast for hot, dry weather from Monday to Wednesday this week. As we saw during evacuation, the situation can change quickly. We must ensure the ongoing safety and health of critical personnel currently in town and for everyone before having residents and employees return.
We know this is challenging. We assure you that we are working behind the scenes to ensure issues such as air quality are confirmed, and that we have town services ready for everyone’s return. There is work happening everyday to keep you informed, and we will continue doing so.
Fire status:
Forestry officials continue with monitoring and fire suppression activity. The fire remains at level one, and has not moved closer to the town (approx. 3-4 kms away). For the latest fire status, please refer to the Province’s Active Fires Dashboard.
To travellers & tourists:
A reminder to anyone travelling on the Trans Labrador Highway that there is no access to the Town of Churchill Falls, and service stations and other services in town are not available currently. Plan accordingly and ensure your vehicle is fuelled or charged before using the TLH. Please be aware that the evacuation order for Churchill Falls remains in effect, and it applies to residents and visitors/ travellers alike.
To our customers:
While there are no power interruptions anticipated at this time, there continues to be an elevated risk of outages for all customers in Labrador while active wild fires continue to burn near transmission lines in both Labrador and Quebec. Hydro is taking actions to minimize this risk, where possible. However, it is advisable to be prepared for the possibility of outages. Please follow our website and social media (@NLHydro) for the latest information, or contact our customer service team at 1-888-737-1296.
Labrador City – Some customers in Labrador City continue to receive power via Hydro Quebec. We will advise customers when we are ready to re-establish full connection to Churchill Falls supply (expected to be early next week), as this will require a brief planned power interruption (20-30 minutes).
Our next scheduled update will be Monday evening (July 1).
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 29, 5:43 pm
To our people:
A reminder to our Churchill Falls friends and colleagues, please reach out any time to our People Care Centre if you require any assistance (709-733-5343 or PeopleCareCentre@nlh.nl.ca).
The evacuation order for the town remains in effect, and we appreciate your cooperation in adhering to this direction for the safety and well-being of all. Only critical staff will have access to the Town of Churchill Falls at this time. These team members have been notified and we will reach out directly to anyone needing to be called back to work.
To our customers:
While there are no power interruptions anticipated at this time, there continues to be an elevated risk of outages for all customers in Labrador while active wild fires continue to burn near transmission lines in both Labrador and Quebec. Hydro is taking actions to minimize this risk, where possible. However, it is advisable to be prepared for the possibility of outages. Please follow our website and social media (@NLHydro) for the latest information, or contact our customer service team at 1-888-737-1296.
Labrador City – Some customers in Labrador City continue to receive power via Hydro Quebec. We will advise customers when we are ready to re-establish full connection to Churchill Falls supply (expected to be early next week), as this will require a brief planned power interruption (20-30 minutes).
Fire status:
Forestry officials continue to monitor conditions. The fire remained at level one today, and has not moved closer to the town (it remains approximately 3-4 kms away). Forestry teams are on site and coordinating response activities with all available resources. They advise that flare ups are possible until the fire has been extinguished completely. For the latest fire status, please refer to the Province’s Active Fires Dashboard.
To travellers and tourists:
A reminder to anyone travelling on the Trans Labrador Highway that there is no access to the Town of Churchill Falls, and service stations and other services in town are not available at this time. Please factor this into your travels and ensure your vehicle is fueled or charged before leaving. Please be aware that the evacuation order for Churchill Falls remains in effect, and it applies to residents and visitors/ travellers alike.
Our next scheduled update will be Sunday evening (June 30).
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 28, 5:00 pm
To Our People:
A reminder to our friends and colleagues from Churchill Falls, please reach out to our People Care Centre if you need anything at all (709-733-5343 or PeopleCareCentre@nlh.nl.ca).
The evacuation order remains in effect. Only critical staff will have access to the Town of Churchill Falls at this time. These team members have been notified and we will reach out directly to anyone needing to be called back to work.
We appreciate many are eager to get back to your homes. We must be thoughtful and diligent in ensuring a safe return for all. This may take several days or longer as there are many considerations. We continue to monitor fire status and work with provincial officials to get you home only when safe to do so.
The fire remains approximately 3-4 kilometers away from the town. The fire remains held and has not reached homes, the town buildings or infrastructure.
To Our Customers:
Power has been restored for all customers. There continues to be a risk of outages for all customers in Labrador while active fires continue to burn near transmission lines in both Labrador and Quebec. Our teams are taking actions to minimize this risk, where possible. Customers should continue to be prepared for outages. Please follow our website and social media (@NLHydro) for the latest information or contact our customer service team at 1-888-737-1296 or nlhydro.com/outages.
Labrador City – Some customers in Labrador City continue to receive power via Hydro Quebec. We will advise customers when we are ready to re-establish full connection to Churchill Falls supply, expected early next week. This will require a brief outage (20-30 minutes).
Operations:
The public safety advisory has been lifted for the Jacopie Spillway. Water is no longer being released from the spillway. The plant remains online at reduced levels of generation. Teams have resumed on site operation.
Fire Status:
Forestry officials continue to monitor fire conditions, which remains at a level one. Forestry teams are on site and coordinating fire response activities with all available resources. They have advised that flare ups are possible until the fire has been extinguished completely. For the latest fire status please refer to the Province’s Active Fires Dashboard, which is updated every six hours.
The Trans Labrador Highway is open to through traffic. If you are travelling through Churchill Falls, please ensure your vehicles are charged or fueled before leaving. If your vehicle cannot travel this distance without refueling or recharging, we advise delaying travel plans. Services are not available in Churchill Falls. A reminder that the evacuation order for Churchill Falls remains in effect.
We expect our next update tomorrow evening.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 28, 11:25 am
To Our People:
A reminder to our friends and colleagues from Churchill Falls, please reach out to our People Care Centre if you need anything at all (709-733-5343 or PeopleCareCentre@nlh.nl.ca).
The evacuation order remains in effect. Only critical staff will have access to the Town of Churchill Falls at this time. These team members have been notified and we will reach out directly to anyone needing to be called back to work.
We appreciate many are eager to get back to your homes. We must be thoughtful and diligent in ensuring a safe return for all. This may take several days or longer as there are many considerations. We continue to monitor fire status and work with provincial officials to get you home only when safe to do so.
The fire remains approximately 3-4 kilometers away from the town. There was a small flare up near the airport last evening, but the fire remains held and has not reached homes, the town buildings or infrastructure. Forestry officials have advised that flare up are possible until the fire has been extinguished completely. Our teams continue to meet several times daily with Forestry officials and following their guidance.
We will continue to share updates through all available channels.
To Our Customers:
Power has been restored for all customers. Yesterday, following consultation with Government, teams were able to enter Churchill Falls and re-energize both lines. There continues to be a risk of outages for all customers in Labrador while active fires continue to burn near transmission lines in both Labrador and Quebec. Our teams are taking actions to minimize the risk of outages where possible. Customers should continue to be prepared for outages. Please follow our website and social media (@NLHydro) for the latest information. For updates anytime, please contact our customer service team at 1-888-737-1296 or nlhydro.com/outages.
Labrador City – Some customers in Labrador City continue to receive power via Hydro Quebec. Once we are ready to re-establish full connection to Churchill Falls supply, expected early next week, we will advise these customers as it will require a brief outage (20-30 minutes).
Operations:
The public safety advisory has been lifted for the Jacopie Spillway. Water is no longer being released from the spillway. The plant remains online at reduced levels of generation. Teams have resumed onsite operation.
Fire Status:
Forestry officials continue to monitor fire conditions. For the latest fire status please refer to the Province’s Active Fires Dashboard, which is updated every six hours.
The Trans Labrador Highway is open to through traffic. If you are travelling through Churchill Falls, please ensure your vehicles are charged or fueled before leaving. If your vehicle cannot travel this distance without refueling or recharging, we advise delaying travel plans. Services are not available in Churchill Falls. A reminder that the evacuation order for Churchill Falls remains in effect.
We will continue to provide updates as information is available. We appreciate your patience and understanding.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 27, 5:35 pm
To Our People:
A reminder to our friends and colleagues from Churchill Falls, please reach out to our People Care Centre if you need anything at all (709-733-5343 or PeopleCareCentre@nlh.nl.ca).
The evacuation order remains in effect. We appreciate many are anxious to get back to your homes. We are turning our attention to planning and preparing for residents to return to the community. This evening, we will be sending a small team of critical personnel into the Town to assess health and safety concerns and begin initial preparations. This team has been notified. We will know more once they have had a chance to assess and we will continue to provide updates on next steps as available. In consultation with Provincial Officials, there is a team working to get you home as soon as safe to do so.
We know some of the footage that has been shared publicly is difficult to see. The fire has not reached your homes, the town buildings or infrastructure. The fire remains approximately 3-4 kilometers away from the town. Our teams are meeting several times daily with Forestry Officials and following their guidance.
We will continue share updates through all available channels.
To Our Customers:
All customers have been restored. Yesterday, following consultation with Government, teams were able to enter Churchill Falls and re-energize both lines. There continues to be a risk of outages for all customers in Labrador while active fires continue to burn near transmission lines in both Labrador and Quebec. Our teams are taking actions to minimize the risk of outages where possible. Please continue to be prepared for outages. Please follow our website and social media (@NLHydro) for the latest information. For updates anytime, please contact our customer service team at 1-888-737-1296 or nlhydro.com/outages.
Labrador City – Some customers in Labrador City continue to receive power via Hydro Quebec. Once we are ready to re-establish full connection to Churchill Falls supply, we will advise these customers as it will require a brief outage (20-30 minutes).
Fire Status:
Forest officials continue to monitor fire conditions and are advising of a positive outlook for the next several days. For the latest fire status please refer to the Province’s Active Fires Dashboard, which is updated every six hours.
The Trans Labrador Highway is open to through traffic. If you are travelling through Churchill Falls, please ensure your vehicles are charged or fueled before leaving. If your vehicle cannot travel this distance without refueling or recharging, we advise delaying travel plans. These services are not available in Churchill Falls. A reminder that the evacuation order for Churchill Falls remains in effect.
We will continue to provide updates as information is available and advise of coordinated, joint media availability with our partners in this response. We appreciate your patience and understanding.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 27, 2:05 pm
To our colleagues from Churchill Falls, we know some of the footage that has been shared publicly is difficult to see. We want to assure you that at this time, the fire has not reached your homes, town buildings or infrastructure. The fire remains approximately 3-4 kilometers away from the town.
We will continue to keep you updated through all available channels. If residents have questions at any time, please reach out to our People Care Centre: 709-733-5343 or PeopleCareCentre@nlh.nl.ca.
We’ve been advised that Government has reopened the Trans Labrador Highway (Route 500) to through traffic. The evacuation order for Churchill Falls remains in effect. If you are travelling through Churchill Falls, please ensure your vehicles are charged or fueled before leaving. If your vehicle cannot travel this distance without refueling or recharging, we advise delaying travel plans. These services are not available in Churchill Falls.
Update June 27, 11:30 am
Our People:
Our teams continue to focus on supporting our colleagues and their families from Churchill Falls. We are thankful for the outpouring of support throughout the province and for all the kindness being shown to those displaced, as well as those working tirelessly on the ground to support our people.
Our Customers:
Yesterday, following consultation with Government, teams were able to access Churchill Falls and re-energize both of the main lines. All customers have been restored. There continues to be a risk of outages for all customers in Labrador while active fires continue to burn near transmission lines in both Labrador and Quebec. Our teams are taking actions to minimize the risk of outages where possible. Please continue to be prepared for outages. Please follow our website and social media (@NLHydro) for the latest information. For updates anytime, please contact our customer service team at 1-888-737-1296 or nlhydro.com/outages.
Wabush
All customers in Wabush have been restored, including data centres, the landfill and cabin areas.
Labrador City
Some customers in Labrador City continue to receive power via Hydro Quebec. Once we are ready to re-establish full connection to Churchill Falls supply, we will advise these customers. This will require a brief outage (20-30 minutes).
Labrador East
There is no impact for Labrador East Customers. If supply from Churchill Falls should be interrupted, Hydro can serve customers from Muskrat Falls and/or the Gas Turbine in Happy Valley-Goose Bay.
Our Town and the Churchill Falls Plant:
At this time, homes and buildings in Churchill Falls have not been impacted by the fire. The plant continues to operate at a reduced load. The evacuation order remains in effect, we appreciate many are anxious to get back to their homes and the community. We continue to assess risk and in consultation with Forestry officials will determine when safe return is possible, first for critical teams to return, followed by all residents.
Fire Status:
Forestry officials continue to monitor fire conditions and are advising of a positive outlook for the next several days. For the latest fire status please refer to the Province’s Active Fires Dashboard, which is updated every six hours.
We will continue to provide updates as information is available and advise of coordinated, joint media availability with our partners in this response. We appreciate your patience and understanding.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 26, 5:47 pm
Our People:
Our teams continue to focus on supporting our colleagues and their families who have been displaced from their homes. It is very clear to our team, and now the world, that Churchill Falls is a special place for so many. We continue to coordinate response with our Provincial Partners – all are working to protect your homes and community.
Our Customers:
Most customers have been restored. There continues to be a risk of outages for all customers in Labrador while active fires continue to burn near transmission lines in both Labrador and Quebec. Our teams are taking actions to minimize the risk of outages where possible.
Please continue to be prepared for outages. Please follow our website and social media (@NLHydro) for the latest information. For updates anytime, please contact our customer service team at 1-888-737-1296 or nlhydro.com/outages.
Wabush
All customers in Wabush have been restored, with the exception of data centres and the landfill. Following consultation with Government, teams were able to access Churchill Falls and re-energize both of the main lines.
Labrador City
All customers in Labrador City are also supplied, most through a connection via Hydro Quebec. We are asking that customers in Labrador City continue to conserve energy and we are very appreciative of your ongoing assistance in managing demand on the system.
Labrador East
There is no impact for Labrador East Customers. If supply from Churchill Falls should be interrupted, Hydro can serve customers from Muskrat Falls and/or the Gas Turbine in Happy Valley-Goose Bay.
Our Town and the Churchill Falls Plant:
At this time, homes and buildings in Churchill Falls still have not been impacted by the fire and the plant continues to operate at a reduced load.
Fire Status:
Forestry officials continue to monitor fire conditions and report that the fire is approximately 4 km from the town. For the latest fire status please refer to the Province’s Active Fires Dashboard, which is updated every six hours.
We will continue to provide updates as information is available and advise of coordinated, joint media availability with our partners in this response. Media inquiries should be directed to jillpitcher@nlh.nl.ca, 709-689-9938. We will respond as available.
We appreciate your patience and understanding.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 26, 1:30 pm
Our People:
Our teams continue to focus on supporting our colleagues and their families who have been displaced from their homes. It is very clear to our team, and now the world, that Churchill Falls is a special place for so many. We continue to coordinate response with our Provincial Partners – all are working to protect your homes and community.
Our Customers:
Please follow our website and social media (@NLHydro) for the latest information. For updates anytime, please contact our customer service team at 1-888-737-1296 or nlhydro.com/outages. Thank you for your understanding as we continue to safely restore power as soon as possible for customers.
Wabush
Our customers in Wabush remain without power (1680 customers are affected). We know extended outages are challenging for our customers. Backup supply from Hydro Quebec is not an option for this area. There are several options for power restoration with the soonest option to be restoration from the existing lines. Crews are prepared to mobilize and attempt to re-energize lines as soon as it is safe to do so. For other options, we are also actively sourcing and preparing for alternative sources of supply.
Labrador City
Most customers in Labrador City are now being fed through Hydro Quebec (Approx 4,539 Customers with power). Work is ongoing to attempt to bring remaining customers back online.
Labrador East
There is no impact for Labrador East Customers. If supply from Churchill Falls should be interrupted, Hydro can serve customers from Muskrat Falls and/or the Gas Turbine in Happy Valley-Goose Bay.
Our Town:
At this time, homes and buildings in Churchill Falls have not been impacted by the fire and the plant continues to operate at a reduced load.
Fire Status:
Forestry officials continue to monitor fire conditions. For the latest fire status please refer to the Province’s Active Fires Dashboard, which is updated every six hours.
We will continue to provide updates as information is available and advise of coordinated, joint media availability with our partners in this response. Media inquiries should be directed to jillpitcher@nlh.nl.ca, 709-689-9938. We will respond as available.
We appreciate your patience and understanding.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 26, 1:08 pm
Media Advisory:
Premier Furey to Provide Update on the Fire in the Churchill Falls Area
The Honourable Dr. Andrew Furey, Premier of Newfoundland and Labrador, will be joined by Jennifer Williams, President and Chief Executive Officer of Newfoundland and Labrador Hydro, Jamie Chippett, Deputy Minister of the Department of Fisheries, Forestry, and Agriculture, and Blair Adams, Assistant Deputy Minister, Department of Fisheries, Forestry and Agriculture.
We will continue to provide updates as information is available and advise of coordinated, joint media availability with our partners in this response. Media inquiries should be directed to jillpitcher@nlh.nl.ca, 709-689-9938. We will respond as available.
We appreciate your patience and understanding.
Media inquiries:
jillpitcher@nlh.nl.ca
709-689-9938
Update June 25, 10:54 pm
Fire Status:
Forestry officials continue to monitor fire conditions and has advised that as of this evening town structures have not been impacted. For the latest fire status please refer to the Province’s Active Fires Dashboard , which is updated every 6 hours.
Plant & Transmission Operations:
The plant remains online at a reduced load.
Outage Updates:
There is no impact for Labrador East Customers. If supply from Churchill Falls should be interrupted, Hydro can serve customers from Muskrat Falls and/or the Gas Turbine in Happy Valley-Goose Bay.
Updates on outages affecting customers in Labrador West will be posted to the following link: https://nlhydro.com/update-on-power-outages-in-labrador-west/. We are in the process of gradually restoring power to many in Labrador City. Customers in Wabush will unfortunately remain without power as we continue to develop plans to restore the system as well as source alternate supply.
Evacuation Order in Effect:
At the recommendation of Forestry Officials, a full evacuation order is now in effect for all personnel remaining in the Town of Churchill Falls. All personnel have now been evacuated.
Please respect that this is a difficult time for those displaced by these fires. We will continue to provide updates as information is available. Questions and requests from the media should be directed to jillpitcher@nlh.nl.ca, 709-689-9938.
Media inquiries:
jillpitcher@nlh.nl.ca
689-9938
Update June 25, 6:11 pm
Fire Status:
The fire crossed the river earlier today.
Plant & Transmission Operations:
The plant remains online at a reduced load.
Related to the fires, two transmission lines have tripped resulting in outages for our customers in Labrador West. We will provide updates as more information is available.
Evacuation Order Updated:
At the recommendation of Forestry Officials, a full evacuation order is now in effect for all personnel remaining in the Town of Churchill Falls. All personnel have now been evacuated.
Please respect that this is a difficult time for those displaced by these fires. We will continue to provide updates here as information is available. Questions and requests from the media should be directed to jillpitcher@nlh.nl.ca, 709-689-9938.
Media inquiries:
jillpitcher@nlh.nl.ca
689-9938
Update June 25, 2:55 pm
Updated Evacuation Order for Churchill Falls
Due to the progression of the fire today, and under the direction of Forestry officials, teams on the ground in Churchill Falls are now safely evacuating the area in a phased and orderly fashion.
Our thoughts are with the folks who have been on the ground keeping things going until now and we cannot thank them enough for everything they have done.
Stay safe everyone. We will continue to provide more information with you as it becomes available.
Media inquiries:
jillpitcher@nlh.nl.ca
689-9938
Update June 25, 11:15 am
Media Advisory: Premier Furey to Provide Update on the Fire in the Churchill Falls Area
Premier Furey will be joined by Jennifer Williams, President and Chief Executive Officer of Newfoundland and Labrador Hydro, Jamie Chippett, Deputy Minister of the Department of Fisheries, Forestry, and Agriculture, and Blair Adams, Assistant Deputy Minister, Department of Fisheries, Forestry and Agriculture.
The availability will be live-streamed on the Government of Newfoundland and Labrador’s Facebook page.
Fire Status:
The fire is still held to the south side of the river and suppression and prevention efforts continue. Teams are monitoring weather conditions and fire status as today will be a critical day for suppression efforts.
Plant & Transmission Operations:
Last evening, we released water from the spillway in a controlled manner as a precautionary measure. Water management is an important consideration in maintaining production and protecting the plant assets.
At the time of this update, the plant continues to operate at approximately one-third of capacity, with continued supply to Quebec and Labrador West customers.
Evacuation Order Remains in Effect:
Please be advised that entry to Churchill Falls is limited to critical resources. We appreciate your cooperation as the team in Churchill Falls continue their focused attention on critical work.
Please respect that this is a difficult time for those displaced by these fires. We will continue to provide updates here as information is available. Questions and requests from the media should be directed to jillpitcher@nlh.nl.ca, 709-689-9938.
Media inquiries:
jillpitcher@nlh.nl.ca
689-9938
Update June 24, 9:10 pm
Public Safety Advisory: Controlled Water Release at the Jacopie Spillway
The Churchill Falls Generating Station is advising the public of a controlled water release to occur from the upper Churchill reservoir at the Jacopie Spillway commencing the evening of Monday, June 24, 2024. The expected duration of the release is unknown.
In addition to the evacuation zone, the public is advised to avoid the following areas:
- Jacopie and Whitefish Spillways, including boat launch areas;
- The Churchill River Bed downstream of the Jacopie Spillway;
- The Churchill River Walking Trail; and
- East and west forebay water storage areas located north of the community of Churchill Falls
Lowering the level in the reservoir is a precautionary measure as part of our fire response. As communicated earlier this evening, teams are intently monitoring forecasts as tomorrow will be a critical day for suppression efforts. Water management is an important consideration in protecting the plant assets.
We will advise once the controlled release of water has ended.
Safety is always our number one priority. The public is advised to always use extreme caution around dykes, dams and spillways as water levels in these areas are always unpredictable.
Media inquiries:
jillpitcher@nlh.nl.ca
689-9938
Update June 24, 7:10 pm
Fire Status:
There has been no significant change in fire status today. The fire is still held to the south side of the river and suppression and prevention efforts continued today. Teams are intently monitoring forecasts as tomorrow will be a critical day for suppression efforts.
Contractors are also now on site, and today, continued to make progress on establishing a fire break.
Plant & Transmission Operations:
Plant and transmission operations remain unaffected and are not at immediate risk.
Evacuation Order Remains in Effect:
Please be advised that entry to Churchill Falls remains limited to critical resources. We appreciate your cooperation as the team in Churchill Falls continue their focused attention on critical work.
The number of critical personnel remaining in Churchill Falls varies daily. There are currently about 100 persons on site overseeing a range of activities from operations and site services, to fire services and clearing for the fire break.
Please respect that this is a difficult time for those displaced by these fires. We will continue to provide updates as information is available. Questions and requests from the media should be directed to jillpitcher@nlh.nl.ca, 709-689-9938.
Update June 24, 11:10 am
Fire Status:
There is no significant change in fire status overnight. The fire is still held to the south side of the river and suppression and prevention efforts continued today. Teams are closely monitoring forecasts as well as fire status. Smoke conditions persist. While the system has not been impacted, we will keep our customers in Labrador updated if this situation changes.
Plant & Transmission Operations:
No change. Plant and transmission operations remain unaffected and are not at immediate risk.
Evacuation Order Remains in Effect:
Please be advised that entry to Churchill Falls remains limited to critical resources. We appreciate your cooperation as the team in Churchill Falls continue their focused attention on critical work.
Deliveries to Churchill Falls:
We ask that non-critical deliveries to the town be paused until further notice.
Receiving remains open at our at receiving location in Quebec.
Churchill Falls (Labrador) Corp
C/O TST CF Express
6600 Chemin St. Francois
St. Laurent, QC
H4S 1B7
Travelling through Churchill Falls:
The highway is open to through traffic. However, If you are travelling through Churchill Falls, please ensure your vehicles are charged or fueled before leaving. If your vehicle cannot travel this distance without refueling or recharging we advise delaying travel plans. These services are not available in Churchill Falls.
We will continue to provide updates here as information is available. Questions can be directed to jillpitcher@nlh.nl.ca, 709-689-9938.
Update June 23, 6:50 pm
Fire Status:
There is no significant change in the fire’s status today. The fire is still held to the south side of the river and suppression and prevention efforts continued today. Teams are closely monitoring forecasts. Smoke conditions persist. While the system has not been impacted, we will keep our customers in Labrador updated if this situation changes.
A section of vegetation, approximately 60 meters wide and 8-10 kilometers long, is being proactively cleared to create a physical barrier between the fire and the town. Industrial sprinkler systems have also been installed and are supplementing the lack of rain in efforts to protect homes and town assets.
Plant & Transmission Operations:
At this time, plant and transmission operations remain unaffected and are not at immediate risk. The response remains highly coordinated and we continue to support the ongoing needs of teams in Churchill Falls and those displaced.
We appreciate the significant media interest in this response. This is a stressful time for many. The small crew on site remain focused on operations and site services. We remain focused on supporting their health and wellness, as well as those displaced.
Evacuation Order Remains in Effect:
The town remains evacuated and we would like to remind the public and media that the area is open to emergency and critical personnel only. We appreciate your cooperation as the team in Churchill Falls continue their focused attention on critical work.
Deliveries to Churchill Falls:
We ask that non-critical deliveries be paused until further notice.
Travelling through Churchill Falls:
Please be advised that entry to Churchill Falls is limited to critical resources. The highway is open to through traffic. However, If you are travelling through Churchill Falls, please ensure your vehicles are charged or fueled before leaving. If your vehicle cannot travel this distance without refueling or recharging we advise delaying travel plans.
We will continue to provide updates here as information is available. Questions can be directed to jillpitcher@nlh.nl.ca, 709-689-9938.
Update June 23, 12:29 pm
Conditions remain stable this morning with the fire remaining on the south side of the river and suppression and prevention efforts continuing today.
At this time, plant operations remain unaffected and are not at immediate risk. The response remains highly coordinated and we continue to support the ongoing needs of personnel who remain stationed in Churchill Falls, as well as those who have been displaced.
The town remains evacuated and we would like to remind the public and media that the area is open to emergency and critical personnel only. We appreciate your cooperation as the team in Churchill Falls focus their attention on critical work.
We will continue to provide updates here as information is available. Questions can be directed to jillpitcher@nlh.nl.ca, 709-689-9938.
Update June 22, 11:00 pm
Conditions in Churchill Falls remain stable at this time with the fire remaining on the south side of the river. Resources will continue to focus on suppression efforts tomorrow. Response remains highly coordinated and we continue to support the ongoing needs of those who have been displaced.
Plant operations remain unaffected at this time and is not at immediate risk.
We will continue to update here as information is available. Questions can be directed to jillpitcher@nlh.nl.ca (709-689-9938).
Update June 22, 9:20 am
Conditions in Churchill Falls remain stable at this time with the fire remaining on the south side of the river.
Resources will continue to focus on suppression efforts today. Response remains highly coordinated and we continue to support the ongoing needs of those who have been displaced.
Plant operations remain unaffected at this time and is not at immediate risk.
Smoke remains an ongoing concern. While the towers in the area are steel structures, smoke can impact components on the lines (the insulators) resulting in trips. Teams are examining potential scenarios and working to mitigate any potential customer impact, should smoke conditions result in a trip. We will keep our customers in Labrador updated and are sharing preparedness information on our social channels.
We will continue to update here as information is available. Questions can be directed to jillpitcher@nlh.nl.ca (709-689-9938).
Update June 21, 10:12 pm:
Conditions in Churchill Falls remain stable this evening. We will provide further updates tomorrow or as new information is available.
Update June 21, 2:54 pm:
Conditions in Churchill Falls remain stable at this time.
Officials are cautiously optimistic about the outlook for today. Rain last evening, combined with the coordinated fire response continued to hold the fire to the south side of the river. Wind speeds are also expected to be a little lower today, which is favourable, keeping in mind this remains a highly volatile situation and conditions can change at any moment.
Additional resources are deployed to aid in suppression efforts, including four additional water bombers. Other fires in the area have also been downgraded.
Response remains highly coordinated and we continue to support the ongoing needs of those who have been displaced.
Plant operations remains unaffected at this time and is not at immediate risk.
Smoke remains an ongoing concern. While the towers in the area are steel structures, smoke can impact components on the lines (the insulators) resulting in trips. Team are working to understand potential scenarios and mitigate any potential customer impact, should smoke conditions result in a trip. We will keep our customers in Lab West updated and are sharing preparedness information on our social channels.
Finally, we appreciate the significant media interest in this response. Many team members remain focused on operations and support for our employees, their families, and pets. We will continue to update here as information is available. As always, questions can be directed to jillpitcher@nlh.nl.ca (709-689-9938).
LINKS:
Update June 20, 10:40 pm:
This evening, together with Forestry Officials and the Provincial Emergency Operations Centre, our teams continued to monitor the fire and system impacts closely. Hydro officials are also located at the Provincial Emergency Operations Centre in St. John’s.
Firefighting efforts continued throughout the day and successfully kept the fire to the south banks of the river. As a result of this tremendous suppression effort, the fire has not crossed the river and there is no advancement towards the community. The Province continues to arrange additional firefighting support and resources and our teams on the ground continue to coordinate and support those efforts. In addition to the resources and equipment on route to the site, Forestry is also deploying sprinkler kits throughout the Town to assist with suppression around Town facilities and protection of property.
The plant remains in operation at full capacity. Roughly 40 people remain in the Town comprised of a small crew of Hydro employees to operate the plant and site services to secure the community, as well as members of the Royal Newfoundland Constabulary and firefighting crews. As communicated earlier, while there is no immediate risk to the plant, teams are analyzing potential scenarios. There are many considerations in determining an approach to production should teams receive direction to evacuate, including spilling requirement and downstream impacts, asset protection, and remote monitoring capabilities.
We are thinking about and remain focused on the safety of those responding and support for the residents and other evacuees of Churchill Falls. We have received tremendous support from the Town of Happy Valley-Goose Bay and community organizations to ensure everyone is taken care of. We will continue working jointly with local representatives to ensure we are keeping everyone informed and supported. We know this is a very challenging and scary time and we thank everyone who has stepped forward to provide support.
Status updates will be provided following assessments from Forestry Officials or should conditions or status change.
LINKS:
Media inquiries:
Jill Pitcher
689-9938
Update June 20, 6:10 pm:
Tonight, our teams continue to monitor the fire and system impacts closely.
Firefighting efforts continued throughout the day and will be ongoing throughout the evening. We are working closely with Forestry Officials and the Provincial Emergency Operations Centre on a coordinated response.
We are thinking about and remain focused on support for the residents and other evacuees of Churchill Falls.
The efforts of our Provincial responders have been relentless. We are grateful for their dedicated service and continued efforts to fight these fires. And we are grateful for the outpouring of support of so many agencies and organizations.
The plant remains in operation at full capacity. While there is no immediate risk to the plant, teams are analyzing potential scenarios. There are many considerations in determining an approach to production should teams receive direction to evacuate, including spilling requirement and downstream impacts, asset protection, and remote operations capability.
We appreciate that there is significant media interest. We will provide another update tomorrow morning unless the situation changes. If the situation does evolve, we will continue to advise through a coordinated approach with our Government partners in this response.
Link to briefing earlier today: Premier Furey Provides Update on Fire in Churchill Falls Area
Resource: For fire status updates, the Province’s Active Fires Dashboard is updated every 6 hours.
Update June 20, 10:13 am:
All residents have now been safely evacuated. We are appreciative of the incredible support for the people of Churchill Falls–from the Province, the Town of Happy Valley Goose Bay, the Red Cross, the Salvation Army, the YMCA, Pal Airlines, the RNC and so many others.
We continue to closely monitor fires in the area and will keep the public and media informed should the situation evolve. At this time, the fire has not crossed the river and remains between 5-6 km from the Town. Forecasts are not favourable, but there is an incredible coordinated effort being led by the Province.
We appreciate there are many questions regarding the generation and transmission assets in the area. Response efforts have prioritized protection of these assets. A small crew remains on site to operate the plant as long it is safe to do so. The plant is currently at normal production levels.
There is an update coming at 1pm that will be streamed live on the Government of Newfoundland and Labrador’s Facebook page. Details at the following link:
Media Advisory: Premier Furey to Provide Update on Fire in Churchill Falls Area
Resource: For fire status updates, the Province’s Active Fires Dashboard is updated every 6 hours.
Update June 19, 10:00pm:
Hydro has mobilized our Corporate Emergency Response Protocols in response to the evacuation order for the Town of Churchill Falls (see below) and in response to wildfires near the town. At this time, we are focused on the safety of everyone from Churchill Falls. We have approximately 750 residents and contractors who have have to evacuate. Forestry Officials have advised people to head east to Happy Valley-Goose Bay. The YMCA is the check-in point for evacuees.
We are coordinating with the Province, local officials, the Red Cross, the Town of Happy Valley-Goose Bay and other groups that have reached out to offer assistance.
We have a small crew of essential personnel that will stay on site at the generating station as long as it is safe to do so. Evacuation plans are also in place for this team, if required.
Teams are focused on response and we will provide updates as available at this link and on our Facebook Page and X (formerly Twitter).
Media inquiries:
Jill Pitcher
689-9938
Evacuation Order in Effect for Town of Churchill Falls
Forestry Officials are advising residents and visitors of the Town of Churchill Falls that an Evacuation Order is in Effect due to changing conditions of the fire around the community. We ask the community for their assistance in implementing an orderly and safe evacuation by 8:15 p.m.
If you require transportation, please proceed to the Town Centre Foyer or the Staffhouse Bus area.
Forestry Officials advise people to head east to Happy Valley-Goose Bay.
You can prepare by doing the following:
• Look in on friends and loved ones who may not monitor media regularly.
• Keep electronic devices and cell phones charged, including mobile chargers.
• Have your vehicle(s) filled with gas.
• Sign up for Churchill Falls Mobile Alerts & Community Notices and visitca for updates.
• Keep informed and monitor local media and NL’s Active Wildfire Dashboard and Government NL’s Forest Fire Season page for Public Notices and helpful links.
Newfoundland and Labrador Hydro is advising the public that the controlled water release from the upper Churchill reservoir at the Jacopie Spillway has ended.
Safety is always our number one priority. The public is advised to always use extreme caution around dykes, dams and spillways as water levels in these areas are always unpredictable.
June 24, 2024, 9:10 p.m.
Newfoundland and Labrador Hydro is advising the public of a controlled water release to occur from the upper Churchill reservoir at the Jacopie Spillway commencing the evening of Monday, June 24, 2024. The expected duration of the release is unknown.
In addition to the evacuation zone, the public is advised to avoid the following areas:
- Jacopie and Whitefish Spillways, including boat launch areas;
- The Churchill River Bed downstream of the Jacopie Spillway;
- The Churchill River Walking Trail; and
- East and west forebay water storage areas located north of the community of Churchill Falls
Lowering the level in the reservoir is a precautionary measure as part of our fire response. As communicated earlier this evening, teams are intently monitoring forecasts as tomorrow will be a critical day for suppression efforts. Water management is an important consideration in protecting the plant assets.
We will advise once the controlled release of water has ended.
Safety is always our number one priority. The public is advised to always use extreme caution around dykes, dams and spillways as water levels in these areas are always unpredictable.
Media inquiries:
jillpitcher@nlh.nl.ca
689-9938
On May 16, Hydro President and CEO Jennifer Williams joined Minister Parsons as the Government of Newfoundland and Labrador announced the final details of the Rate Mitigation Plan. Together, with actions taken to date, this plan limits rate increases related to the Muskrat Falls Project (Project) to 2.25% from now through 2030.
We know our customers have been concerned about electricity rates, and that is why we’ve been working closely with the Province for several years to ensure rates wouldn’t double when the Project was finished. Today’s plan will benefit all island customers and we anticipate that our customers will continue to pay the lowest electricity rate in Atlantic Canada on July 1.
Your Questions Answered.
What is Rate Mitigation?
The Muskrat Falls Plant and Labrador Transmission Assets were commissioned in November 2021 and the Labrador Island Link was commissioned in April 2023. Rate Mitigation is designed to allow Hydro to recover a small portion of the costs related to the Project assets from customers while providing certainty for customers, and preventing rates from doubling.
What does this mean for customers?
We recognize that many people are facing challenges and electricity customers continue to be concerned about electricity rates. All island customers will receive this rate mitigation benefit. For most customers, this means Hydro’s annual rate increase is now limited to 2.25% up to and including 2030. Without rate mitigation, rates would have almost doubled (estimated to be 23.6 cents per kWh in 2021).
Example: If your equal payment plan is $300 a month, you’ll pay almost $7 more after July 1, 2024 towards recovering costs related to the Muskrat Falls project. Without action from the Provincial Government and Hydro, this would have been an extra $200 a month. Over the course of the year, this is approximately $2,300 less than had the rate not been mitigated.
What does the Rate Mitigation Plan mean for Hydro?
Since Commissioning of the Project assets, Hydro has been responsible for paying the cost of these Lower Churchill Project assets—approximately $740 million each year. While a small amount ($44M in each of 2022 and 2023) has been collected from customers, the vast majority of costs have been accumulating in a Deferral Account.
The 2022 balance in this account was paid by a $190 million grant from GNL. The 2023 balance of $271 million will be paid down by Hydro over the next three years as part of the Rate Mitigation Plan.
Rate Mitigation allows Hydro to recover some of the costs related to the Lower Churchill Project from customers. Rate Mitigation processes follow normal regulatory processes with the Public Utilities Board, while providing certainty and transparency on rate structure.
Who is paying for Muskrat Falls, and how much?
The exact sources and amounts of funding may vary each year, but essentially the difference will be funded by Hydro.
Beyond the amount recovered from customers and from Federal Funding Sources, between now and 2030, Hydro will invest more than $2 billion to mitigate customer rates.
The portion customers pay in 2024 will be less than 10% of Hydro’s annual cost of Muskrat Falls.
Are we getting electricity from Muskrat Falls? Is the Labrador Island Link working?
We have been seeing great value from our new assets, which have significantly contributed to 92% of our electricity generated from renewable energy sources in 2023—well on our way to being a net zero electricity company by 2035.
In 2023, we estimate the Labrador Island Link had an availability of 96%, better than expected for this early in its operation. Muskrat Falls Plant performance was also better the Canadian average.
How does this rate compare to other provinces?
The average residential customer in the Maritime provinces is forecasted to jump to 18.0 c/kwh in 2024, from 16.6 c/kwh in 2023. The average rate for customers paying the Island Interconnected rate is currently 14.3 c/kwh. After the July adjustment, we anticipate our customers will still pay the lowest rate in Atlantic Canada.
How are Island rates determined?
Determining rates for electricity is a complex process. Newfoundland and Labrador Hydro produces the electricity needed to serve all customers in the province. NL Hydro serves 24,000 customers on the island, one of which is Newfoundland Power. Newfoundland Power in turn distributes the power it receives from NL Hydro to an additional 275,000 customers on the island.
First, the cost to a utility to provide electricity to customers is determined through a very comprehensive General Rate Application Process This process has begun for Newfoundland Power and Hydro’s process will begin next year. That process sets the foundation for determining the rates for all customer classes, residential, commercial and industrial.
The majority of residents pay Island Interconnected rates. Each year, we apply to the Public Utilities Board (the regulator) to update the rate we charge to Newfoundland Power. That rate will now be set to ensure that Hydro’s impact on customer rates is limited to 2.25%. Newfoundland Power then applies for its rate adjustment, which will continue to vary. If approved by the regulator, that becomes the rate ALL residential customers on the Island. Hydro then files its rate schedule for all customer classes to the regulator for approval. Full rate schedules are updated and posted the first week of July each year.
There are separate applications for Island and Labrador Industrial customer rates. Rates for Labrador Interconnected Customers are only adjusted during a General Rate Application. Customers under the Northern Strategic Plan will continue to receive subsidized rates. We will continue to work with the regulator to implement rates and review our cost to provide service.
What happens after 2030?
While this plan provides certainty through 2030, together with Government, Hydro is committed to continued rate mitigation for our customers. What that might look beyond 2030 will be reviewed again into the future