The Public Utilities Board has rejected Newfoundland Power’s recent application for a 10.6 per cent rate increase.

In its decision filed today, the board directed Newfoundland Power to go back to the drawing board and revise its proposal regarding rates to take effect July 1st.

The board said Newfoundland Power should reduce its proposed operating costs by $2 million for 2025-26 to reflect a productivity allowance, providing an incentive for the utility to take greater measures to manage costs and find efficiencies.

They also want the utility to revise its proposals to exclude costs associated with short-term incentive payments to its executive and directors.

Meanwhile, the PUB says it does not accept a proposed increase in the rate of return on equity from 8.5 per cent to 9.85 percent, and is directing the utility to adjust its rate of return expectations to 8.6 per cent.

It wants Newfoundland Power to file additional reports and updates on advanced metering infrastructure, its load research study, supply cost recovery mechanisms and the method of calculating its rate of return on rate base, among other things.