The province’s Consumer Advocate is opposing two rate increase applications submitted by Newfoundland Power to the Public Utilities Board.
The utility is seeking two increases: 1.5 percent to take effect on July 1, 2024 and another 5.5 per cent in July of 2025.
Consumer Advocate Dennis Browne notes that Newfoundland Power earned $3.5 million more than anticipated in 2023 and is now looking to boost their shareholder rate of return from 8.5 to 9.8 per cent.
He says if the board grants the increase, Newfoundland Power could potentially earn an additional $9.8 million in profit annually. “This application is really about increasing their profit, and they’re anxious to earn more for their shareholders.”
(File photo.)
Browne points out that capital expenditures are included in Newfoundland Power’s rate structure. However, he expresses concern that the PUB hasn’t conducted a public hearing on the utility’s capital expenditures since 2005, opting for ‘paper hearings’ instead.
“The Public Utilities Board is not operating under some flag of convenience,” says Browne. “The Public Utilities Board has statutory obligations and when the ratepayers of the province are requesting a hearing, that should be given serious consideration—but it has not been.”
He adds that legislative changes now allow the Consumer Advocate to request that the Lieutenant Governor in Council mandate Newfoundland Power to conduct a hearing.
