rates Posts

Electricity Rates – Our Impact

Electricity Rates – Our Impact

The electricity system involves many organizations working together. At Newfoundland Power, our role is to deliver electricity to homes and businesses.

We purchase 93% of the power we deliver from Newfoundland and Labrador Hydro.  When the cost of electricity is raised by Hydro, it has a direct impact on electricity rates for our customers.

The rate increase effective October 1, 2019 was by Newfoundland and Labrador Hydro. It was not related to our operations and has no financial benefit for Newfoundland Power.

Doing our Part

We understand what’s most important to our customers is reliable service at affordable rates.

And we know you are concerned about Muskrat Falls and the cost of electricity. We share your concerns and will continue to work hard every day to manage costs and minimize our impact on electricity rates.

Here to Help

We can help you save energy and money through our takeCHARGE programs, rebates and energy saving advice. So far our customers have saved enough electricity to power the towns of Clarenville, Gander, and Stephenville for a year.

Newfoundland Power offers an financing to help you get started with your energy efficiency improvements.

You can also apply for our Equal Payment Plan. This plan allows you to pay the same amount all year long and avoid increases in your bill during the colder winter season.

What is a GRA?

What is a GRA?

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!