Customer Rate Adjustment Expected July 2023

This week, Hydro filed an application with the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB) related to the Rate Stabilization Plan (RSP). The Application for July 1, 2023 Utility Rate Adjustment, filed annually, provides the projected rate adjustment that will come into effect July 1.

Hydro’s application proposes an increase in the wholesale rate to Newfoundland Power of 5.5% which is estimated to increase average rates charged by Newfoundland Power by 3.9%. Based on Newfoundland Power’s preliminary numbers and expected application, we anticipate an additional 3% rate increase. Newfoundland Power will make a separate rate application for July 1 reflecting updates to its Rate Stabilization Clause and Municipal Tax Adjustment.

As a result of the two applications, most rates are anticipated to increase on average 6.9%, effective July 1, 2023. The final rate change is subject to review and approval by the PUB.

The increase is related to fuel costs incurred in prior years that were not collected through customer rates and does not reflect any additional costs associated with Muskrat Falls or the Labrador Island link.

With the Labrador Island Link now commissioned, we are working towards the final rate mitigation plan. As a result, the Government of Newfoundland and Labrador and Hydro felt the projected rate increase was high enough without requesting customers to pay even higher rates through an increase in the recovery of Muskrat Falls project costs. The evidence provided to the PUB supports that approach.

Hydro’s application is subject to review and approval by the PUB. The final July electricity rate adjustment will be known later in June and communicated broadly to customers at that time.
We know customers continue to be concerned about electricity rates and through these efforts, Hydro and the Provincial Government are working to provide stable rates for the coming year.

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