Week-long PUB negotiations into Newfoundland Power’s rate increase application begin today, according to Consumer Advocate Dennis Browne.

He says Newfoundland Power is attempting to increase rates by increasing its own rate of return from 8.5 per cent to 9.8 per cent – a 16 per cent increase.

Browne says that would see ratepayers pay approximately $35 million more in profit to Newfoundland Power’s shareholders over the next three years.

Earlier this year, Browne indicated that Newfoundland Power’s 45 per cent allowed equity is the highest authorized level in Canada.

The national median is 37 per cent.

NF Power Responds

Newfoundland Power says it is required to file a general rate application with the PUB every three years or so to review costs, operations and performance.

The utility says they were ordered to file their current application by June 1st, which was reviewed by both the PUB and Consumer Advocate.

Newfoundland Power’s Michele Coughlan says the utility has not increased rates in relation to their operations since 2016.

She says the proposed rate increase of 0.8 per cent, or 80 cents on a $100 dollar electricity bill, reflects all changes in costs, including investment in the electricity system and a fair return on that investment.