Nfld. & Labrador

NL Hydro proposes short-term 6% rate decrease

Low oil prices have led Newfoundland and Labrador Hydro to file an application with the Newfoundland and Labrador Board of Commissioners of Public Utilities requesting to drop electricity rates in the short term.
NL Hydro says falling oil prices has contributed to its request to the PUB to drop electricity rates. (CBC)

Low oil prices have led Newfoundland and Labrador Hydro to file an application with the Newfoundland and Labrador Board of Commissioners of Public Utilities requesting to drop electricity rates in the short term.

If the proposal is accepted, most island customers — residential, industrial and commercial — would see a decrease of 6.3 per cent on their bills by March 1.

The proposed price change would stay in effect until the PUB has a chance to review the application. 

The request comes after fuel costs for the Holyrood Thermal Generating Station were reassessed for 2015.

In a news release Wednesday, Hydro said customers in isolated communities would see "rate changes equal to those approved for Newfoundland Power customers."

In November, Hydro said it wanted to increase rates by 2.8 per cent in order to upgrade and maintain its aging generation and distribution network, and to pay the higher costs associated with delivering a reliable and cost-efficient service.

However, falling oil prices have changed that.

When Hydro announced the proposed increase last fall, "the average cost of No. 6 fuel used at Holyrood was $93.32 per barrel."

"The most recent forecast puts the average cost of fuel at $65.63 per barrel."