Close

Regulatory Information

Regulatory Process

Hydro is a crown corporation and regulated under the Hydro Corporation Act. The Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB) holds full authority to deal with regulatory matters concerning Hydro, including approval of its capital, borrowing programs, and rates.

The PUB is responsible for the regulation of the electric utilities in the province to ensure that the rates charged are just and reasonable, and that the service provided is safe and reliable.

At Hydro, we are dedicated to delivering safe, reliable, least-cost power our customers. We are committed to controlling the cost of our operations while also taking environmental and social into strong consideration.

Click the following link for more information on regulatory filings and documents.

General Rate Application

GRA stands for General Rate Application. During the application process, the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB) reviews our application and decides if proposed rate changes will be approved and implemented.

As a regulated utility, we are accountable for carefully managing rates. We are taking steps to reduce costs and operate as efficiently as possible as we make improvements to the system and maintain reliable service for customers.  The latest updates are available on our electricity rates main page.

Rate Stabilization Plan

Rates are set based on a forecast of how much electricity will be needed and the corresponding price of oil. Because these two things are subject to change, Hydro has a Rate Stabilization Plan (RSP) to annually adjust rates to account for the “actual” amount and cost of oil used to generate electricity at the Holyrood Thermal Generating Station.  This adjustment typically occurs on July 1 every year, but can be moved at the discretion of the Board of Commissioners of Public Utilities.

Every month, the Rate Stabilization Plan compares Hydro’s actual cost of fuel to what cost customers paid. If customers pay more than the cost of No. 6 fuel, these extra funds are set aside with interest and returned to customers the following year through the RSP.  Here are the RSP rate adjustments we’ve seen the last several years:

2018 – increase of 4.2%
2017 – increase of 8.1%
2016 – decrease of 9.5%
2015 – decrease of 9.7%
2014 – increase of 4.0%
2013 – decrease of 8.0%

Capital Budget Applications

By August 1 of every year, we’re required to file an annual capital budget application for review by the Public Utilities Board (PUB). Once approved, this capital budget application sets out which priority projects are to be undertaken the following year with respect to new construction, major upgrades, and replacement and refurbishment work for both new projects and ongoing multi-year projects. This regular investment in our system ensures that we can continue to provide our customers with reliable electricity while carefully managing our costs.

In support of our focus on transparency and providing access to information, our capital budget applications are publicly available below:

2020 Capital Budget Application
2019 Capital Budget Application
2018 Capital Budget Application
2017 Capital Budget Application
2016 Capital Budget Application
2015 Capital Budget Application
2014 Capital Budget Application
2013 Capital Budget Application
2012 Capital Budget Application
2011 Capital Budget Application