Newfoundland Power looking to hike electricity rates over 2-year period

Electrical bills in Newfoundland and Labrador could be getting higher, if the Public Utilities Board approves a new application from Newfoundland Power.  

The Fortis-owned electric utility is looking for permission to increase electricity rates over a two-year period, starting next summer.

Newfoundland Power is looking at a 1.5 per cent increase to electricity bills effective July 1, followed by another 5.5 per cent increase the following July.

The proposed increases would apply to both residential and commercial customers.

The general rate application — a process that happens approximately every three years — comes as Newfoundland and Labrador is grappling with spikes in the cost of living. 

"We know that these are challenging times for our customers and we understand that reliable service at affordable rates is more important now than ever," president Gary Murray said in a statement released Thursday.

"Since 2016, our rate applications have resulted in no increase in base electricity rates for our customers related to our operations."

Murray said effective cost management has meant Newfoundland Power can "serve more customers more efficiently than we did 10 years ago." The company has cut operating costs per customer by almost 10 per cent, adjusted for inflation, he said.

The PUB will conduct a review before making a decision on the proposed hikes. 

There are factors driving the increase, noted the company statement, pointing to the costs to deliver electricity to customers.

Murray also said the company is replacing aging infrastructure and assets so it can better handle storms, which are becoming more frequent and severe.

"Ongoing, strategic upgrades are crucial to maintaining current levels of reliability for our customers," he wrote.

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