Newfoundland and Labrador Hydro has announced completion of the Muskrat Falls Generating Station, a key milestone in the overall Lower Churchill Project.

But the utility says it will still be months before that has any effect on electricity rates.

Hydro says it doesn’t need Muskrat Falls power to keep the heat and lights on this winter, but completing the generating station will allow it to use as much as possible to reduce reliance on the aging Holyrood plant.

While the Labrador-Island Link is not yet fully commissioned, it can deliver power to the island this winter “as it is available,” with Hydro noting it can now be a reliable source even at partial capacity.

In fact, the LIL has so far been able to replace about 2-thirds of Holyrood’s total capacity, with more power gradually being pushed through the line as testing of the system, and its troubled software, continues.

It’s now expected to be fully online by the spring.

Meanwhile, the province continues to work with Ottawa toward finalizing the rate mitigation plan which was supposed to be done by September 30th.

That was delayed for numerous reasons, including issues with compensation for the Innu, whose land the project was built on.

Hydro CEO Jennifer Williams says she knows customers are antsy about rates going up, but assured there will be no spike at least before March, even though Hydro has begun paying for the Muskrat Falls Project itself.

That’s because Hydro has received approval to defer those costs until the rate mitigation plan and other administrative work is complete.

Williams insisted rates won’t double, pointing to initial estimates of about 15 cents a kilowatt hour when all is said and done.

The total cost of the Muskrat Falls Project is still in the $13-billion range, but that could see an increase after Christmas, Williams said.