Hydro filing application to set 2018 and 2019 electricity rates

St. John’s, NL – Today Newfoundland and Labrador Hydro (Hydro) will file an application with the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB) proposing new electricity rates for 2018 and 2019.

Much of the province’s electricity system was built in the 1960s and 70s, and requires considerable maintenance, upgrades or replacement. As part of our commitment to provide safe, reliable service to our customers today and in the future, we must invest in the province’s electricity system and take steps to prepare for interconnection with the North American grid.

“We know customers are counting on us to manage electricity costs as much as possible,” said Dawn Dalley, Vice President of Regulatory Affairs and Corporate Services at Hydro. “We have made broad changes at Hydro to improve our operations and we are pushing for continued efficiencies. We also know that customers need reliable service, so we continue to invest in our equipment and we are doing the necessary preparation for future changes coming to the electricity system.”

The application filed with the PUB proposes increases in electricity rates between 6.0% and 6.6% for most residential customers on the island and on the interconnected system in Labrador in 2018 and 2019. This represents an additional 0.2 to 0.9 cents per kilowatt hour – for most customers this will mean an increase of $6 to $6.60 for every $100 on a monthly bill.

“We understand that any increase in rates can be a challenge for customers,” said Dalley. “We have proposed spreading the upcoming increase over two years to lessen the impact and we remain focused on controlling costs while ensuring reliable power for customers. We have also made recommendations to help offset future rate increases as new equipment and facilities, like Muskrat Falls, come into service.”

It is well known that Muskrat Falls will have a significant impact on electricity rates. To help offset future rate impacts for customers, the application proposes that any savings gained by bringing less-expensive power to the island on new transmission lines from Labrador, or Nova Scotia, be set aside and given back to customers in future rates when Muskrat Falls comes into service.

The application to the PUB is the first step in the regulatory process to set electricity rates in the province. The PUB will review the application to ensure that the rates proposed are reasonable, and public hearings will take place. Once the process is complete, the PUB will make a final decision on electricity rates for 2018 and 2019.

Details of the application, including proposed rates for customers are found in the attached backgrounder and fact sheet found here: https://nlhydro.com/electricity-rates/regulatory-information/