Labrador towns against proposed Hydro increase

The towns of Happy Valley-Goose Bay, Wabush and Labrador City are gearing up to oppose a proposed rate increase by Newfoundland and Labrador Hydro.

Electricity rates may increase 25 per cent

Towns in Labrador are gearing up to oppose a proposed increase in electricity rates.

Newfoundland and Labrador Hydro wants most of its Labrador consumers to pay 25 per cent more.

The new rates would still be some of the lowest in the country.

Opponents laid out their strategy in Labrador City on Tuesday night. 

The towns of Happy Valley-Goose Bay, Wabush and Labrador City have been granted intervener status, and have hired lawyer Ed Hearn to intervene at hearings. Hearn is also part of the 2041 Energy Group, which is fighting for alternatives to Muskrat Falls.

Labrador City Mayor Karen Oldford said it's going to cost the communities about $150,000 to fight Hydro's application.

The Public Utilities Board will judge the increase and decide if a proposed jump from 3.9 to 4.9 cents per kilowatt per hour is fair.

Labrador MP Yvonne Jones thinks it's unfair.

Jones has also obtained intervener status, allowing her to formally question the application for an increase.

She said it's an injustice to the people.

"This could foreseeably be a battle that we're going to be into on our own," said Jones.

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