Newfoundland Power to drop rates

If accepted, rates would decrease by an average of 0.15 per cent on Aug. 1. The company would also rebate customers $3.6 million, starting in September with a credit on their bill, said company spokesman Bob Pike.

Earlier this year, Newfoundland Power had applied for a rate increase of 0.96 per cent starting in August, but the public utilities board turned down the request last month.

In its ruling, the board asked the company to give its customers a rebate from the company's $944,000 in excess revenues in 2001, which were a direct result of operating efficiencies and a tax refund.

The $944,000 rebate will be combined with an additional $2.7-million rebate related to interim electrical rates for 2003.

Pike said he expects the board to issue a decision on the company's new rate plan within the next few weeks.

"Overall, we feel the . . . ruling on the general rate application was a balance between the need to maintain reasonable electrical rates for customers and the need to preserve the financial integrity of the company," said Philip G. Hughes, president and chief executive of Newfoundland Power Inc.

Newfoundland Power is owned by Fortis Inc., a diversified electric utility holding company based in St. John's with assets of more than $2 billion Cdn and annual revenue over $700 million Cdn.

It has holdings in six electric distribution utilities in Newfoundland and Labrador, Prince Edward Island, Ontario, Belize and the Cayman. The firm also owns power companies in New York state and Belize and has real estate and hotel operations in Atlantic Canada.