P.E.I. borrows $31M in energy accord refinancing
The money is being used to refinance debt associated with the refurbishment of the Point Lepreau Nuclear Generating Station and the decommissioning of the Dalhousie Thermal Generating Station.
Energy Minister Paula Biggar said it is part of the previous P.E.I. Energy Accord.
The accord was set up in 2010. Under that agreement Maritime Electric lowered electricity rates for Islanders, and in exchange the government signed a loan on behalf of the utility, taking advantage of its borrowing power to get a lower interest rate than the utility could. That accord expired earlier this year, and a new three-year agreement on electrical rates has been set up.
Biggar said the refinancing of the outstanding loan balance of $31.34 million includes the conversion of short-term loans to long-term loans, and a lower rate of interest for the balance.
She said the savings should help to reduce and stabilize electricity rates in the coming years.
Related News
Old meters giving away free electricity to thousands of N.B. households
FREDERICTION - Home and business owners with old power meters in New Brunswick have been getting the equivalent of up to 10 days worth of electricity a year or more for free, a multi million dollar perk that will end quickly if the Energy and Utilities Board approves the adoption of smart meters.
Last week the EUB began deliberations over whether to allow NB Power to purchase and install 360,000 new generation smart meters for its residential and commercial customers as part of a $92 million upgrade of its distribution system.
If approved, that will spell the end to about 98,000 aging…
