The Public Utilities Board believes that Newfoundland Power can cut $2-million from its annual operating costs without jeopardizing reliability performance.

The main supplier of electricity to the Newfoundland market is on par with the national average in terms of the frequency of outages, but the duration of those outages is shorter than the national standard.

The P.U.B. last week rejected the company’s application for a 10 per cent rate increase, and said no to most of what it asked for in terms of the rate of return to shareholders.

From 2013 to 2022, the utility cut operating costs per customer by 10 per cent while maintaining reliability levels. However, that trend has reversed. Since 2021, Newfoundland Power’s operating costs per customer have been increasing at rates higher than inflation.

The board wants Newfoundland Power to file a preliminary framework on a strategic plan regarding its approach to balancing cost and reliability.