Newfoundland Power has filed what it’s calling a “settlement agreement” to lower electricity rates.
President and CEO Gary Murray says recent negotiations resulted in the settlement of all matters related to 2022/23 General Rate Application. If approved by the Public Utilities Board there will be an average decrease of 1.1 per cent in electricity rates for residential and commercial customers effective March 1.
Murray says Newfoundland Power’s cost of operations has not contributed to any increase in base electricity rates for its customers since 2016. If the settlement agreement is approved by the board, rates for customer related to Newfoundland Power’s operations will be set through 2023.
The company did have an application before the board for an increase in the rate of return to 9.8 per cent from 8.5 per cent.
Consumer Advocate Dennis Browne says this is the best possible outcome for ratepayers—a decrease instead of an increase.
He is looking forward to the review of the Public Utilities Act, an exercise which he expects will be beneficial to customers.