Hydro announces lower than anticipated rate increases for customers

"The current change reflects more recent actual costs of providing service to our customers," said President and CEO Bill Wells.  "To reflect the changes in the cost of providing service, Hydro's rate proposals have been adjusted."

Hydro is now proposing a rate increase of 6.4 per cent to Newfoundland Power, 0.3 per cent lower than the rate originally proposed.  This will result in a decrease in consumer rates from 3.7 per cent to 3.5 per cent. Also, industrial rates will decrease from 10.4 per cent to 10 per cent.

Overall, rates for customers serviced by the Labrador Interconnected System will decrease by approximately 11.6 per cent.  Domestic rates in Labrador West will not change from Hydro's original proposal, and domestic rates in Happy Valley/Goose Bay will decrease by 6.6 per cent as opposed to the originally announced 7.2 per cent decrease.  The $2.9 million surplus for Wabush customers is not affected by this change.

Mr. Wells added:  "The final rates will be determined by the PUB which may alter or amend Hydro's proposed rate structures."