Newfoundland and Labrador Hydro believes it has found a way to avoid massive power increases for Labrador customers: a price hike for Newfoundland customers.

The Crown corporation's original 2013 rate application had included a hefty 23 per cent hike for customers on the Labrador Interconnected System, to deal with a running deficit.

But in a filing sent to the Public Utilities Board on Friday, Hydro is proposing, instead, that customers in Newfoundland pay less than one per cent more on their bills to cover the high cost of providing powers to isolated customers.

The filing shows that while the so-called rural deficit costs the average Newfoundland Power customer $210.79, the cost for a customer on the Labrador grid is $630.39.

Meanwhile, Hydro is deferring a one-per-cent decrease for island customers that had been part of the new rate plan before the PUB.

Hydro officials want to present new information to the PUB in October as it makes a case for the new rates that customers will pay.

The PUB will determine whether or not Hydro's request will go through.