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Rate Stabilization

Every year on July 1, we adjust electricity rates based on the price of oil used to generate electricity at the Holyrood Thermal Generating Station, the amount of electricity used by customers, and the annual amount of water we use for hydroelectric generation.

This routine, annual adjustment is called the Rate Stabilization Plan (RSP). It was created to ensure that customer rates reflect the actual cost of electricity generation from year to year.

 

One-Time Bill Credit to Replace RSP Adjustment for 2020

In July 2020, all active residential and business customers who would normally see their electricity rates adjusted on July 1st each year will receive a one-time credit on their electricity bill. The credit replaces the annual electricity rate adjustment that normally occurs through the Rate Stabilization Plan.

The credit is based on Hydro’s expected fuel savings at the Holyrood thermal generating plant. The recent decrease in oil prices worldwide means it will cost us less to produce electricity over the next year – those savings are being passed directly onto our customers.

Normally, the decrease in fuel prices would have resulted in an electricity rate decrease for these customers through the normal operation of the Rate Stabilization Plan. This year, savings in fuel costs will be passed on to customers upfront through the one-time bill credit – providing relief on electricity bills now, when many customers need it most, rather than spreading out the forecasted savings over the next 12 months.

Learn more about the credit.