Newfoundland Power is a regulated utility. From time to time, we file what is referred to in the regulatory world as a General Rate Application (or GRA for short!) with the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB). What this really means is that we will “open our books” for a full review of the Company’s costs as well as customer electricity rates.
We understand that the cost of electricity matters to you along with receiving reliable electricity service…this matters to us too. That’s why we work hard to minimize the impact on rates while balancing the need to improve and maintain the provincial electricity system. In fact, we are pleased to report that we have been able to control our operating costs at a rate that is below inflation.
Today we filed a 2016-2017 GRA as ordered by the PUB proposing an average rate increase of 3.1% effective July 1, 2016. Although we are focused on managing our costs, there continues to be upward pressure on various costs associated with the delivery of electricity. For example, we purchase 93% of the power we supply to you from Hydro. Increased cost of supply accounts for a portion of this rate increase. Continued investment in the electricity system and establishing a fair and reasonable return on this investment are other components of this proposed rate change.
If you’re interested in finding out more about the 2016-2017 GRA, check it out HERE!