Newfoundland and Labrador Hydro announces lower rate increases for customers

St. John's, NF  Newfoundland and Labrador Hydro (Hydro) informed the Board of Commissioners of Public Utilities (PUB) on October 3, 2001 that a projected rate increase for Island residential and industrial consumers is lower than originally thought.  A correction in the allocation of costs was identified after Hydro filed its general rate application with the PUB.

"This will result in lower rate increases for customers," said Don Barrett, manager of Corporate Affairs and Risk Management.  Hydro is requesting a rate increase of 6.6 per cent to Newfoundland Power, as opposed to a 6.7 per cent increase as originally announced.  This will result in an approximate 3.6 per cent increase in consumer rates, as opposed to 3.7 per cent, and a 8.5 per cent increase in industrial rates, as opposed to a 10.4 per cent increase.

The correction in the allocation of costs will also result in lesser overall decreases in Labrador rates than previously announced.  Overall rates for customers serviced by the Labrador Interconnected System will decrease by 4.9 per cent as opposed to about 13.1 per cent as originally estimated.  Specifically, domestic rates in Labrador West will not change from Hydro's original proposal; domestic rates in Happy Valley  Goose Bay will decrease by 5.5 per cent from seven per cent; and customers in Wabush will continue to receive a $2.9 million surplus.