The province’s Consumer Advocate isn’t impressed with Newfoundland Power’s arguments for rate increases this year and next.
The Public Utilities Board is holding hearings this week in response to requests for a 1.5 per cent increase as of July 1st, and another 5.5 per cent bump a year later.
This year’s increase would equate to a $1 more on a $100 bill, while next year’s would equal about $5 more on the same bill.
Consumer Advocate Dennis Browne was in the hearing room on Thursday as Newfoundland Power President Gary Murray made the case for the increases.
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NF Power President and CEO Gary Murray.
Browne argues they would only boost the company’s profits.
He noted experts from the U.S. say there should be a larger rate of return, while those in Canada say the utility is doing “just fine.”
“Right now they’re making an 8.5 per cent rate of return, it’s getting them $48 million annually, and it is growing,” he said. “So, in about two years’ time, without an increase, they will be making a million dollars of profit per week.
“How much more does Newfoundland Power want?”
The hearings are scheduled to continue today.