The province’s mitigation plan has been finalized, capping the Hydro rate increase associated with paying off the pricey Muskrat Falls project to 2.25 per cent for the next six years.
The plan only applies to island customers who are paying for the project, and comes into effect on July 1.
The province’s $5.2 billion rate mitigation deal with Ottawa was announced in July of 2021. Without a rate mitigation plan, the province says NL Hydro rates would have almost doubled to 23.6 cents per kWH.
On an average monthly bill of $300, customers will pay $307 per month starting in July of 2024, as opposed to the $500 a month without a rate mitigation plan.
Energy Minister Andrew Parsons calls the plan a “massive step forward.”
He says the money people are saving on their power bills will be appreciated when it comes to the cost of living.
Rate mitigation doesn’t mean you won’t see more increases in power rates. Newfoundland Power is applying for two general rate increases—a 1.5 per cent increase effective July 1st, and another 5.5 per cent increase in July of next year.
Earlier Story
The province has finalized its rate mitigation plan that will cap NL Hydro’s domestic residential rate increases from the repayment of the cost of Muskrat Falls to 2.25 per cent annually.
The plan only applies to island customers who are paying for the project, and comes into effect on July 1.
The province’s $5.2 billion rate mitigation deal with Ottawa was announced in July of 2021. Without a rate mitigation plan, the province says NL Hydro rates would have almost doubled to 23.6 cents per kWH.
On an average monthly bill of $300, customers will pay $307 per month starting in July of 2024, as opposed to the $500 a month without a rate mitigation plan.
Rate mitigation doesn’t mean you won’t see more increases in power rates. Newfoundland Power is applying for two general rate increases—a 1.5 per cent increase effective July 1st, and another 5.5 per cent increase in July of next year.