Newfoundland and Labrador Hydro will be permitted to earn profits equal to Newfoundland Power over the next two years so it can improve infrastructure and its financial position.
The Public Utilities Board (PUB) is being directed to permit Hydro to earn a return on equity equal to that of Newfoundland Power, Natural Resources Minister Kathy Dunderdale announced today in a press release.
"It is important that all parts of Nalcor are strong and financially sound to enable our energy corporation to meet its mandate, which includes being a reliable supplier of least-cost electricity through its regulated line of business, Hydro," she said.
The province has also agreed to waive its $13-million, annual debt-guarantee fee until 2010.
The measures will be in full effect by 2010.
A $100-million equity injection into Hydro's capital structure allocated in Budget 2008 is also assisting in retiring debt.
"Hydro will now be provided with an appropriate return on regulated equity comparable to other Canadian regulated utilities and its debt will be lessened through the $100 million equity injection," the minister said. "As a result of these measures, Hydro will not file a general rate application for 2010."
Hydro generating more revenue
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Published on
June 17, 2009
- Published on June 30, 2010
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Staff ~ The Telegram
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Comments
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- Randy
- - July 2, 2010 at 14:57:58
How much of a bonus will these Nalcor ceo's be receiveing this yr i wonder..We'll never know,because the company was set up by Dundderdal and Williams,to never be subject to audit.How much tax-payer money is pumped into this sink hole anyway and how much will our rates go up..Tell us that DANNY
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- flloyd
- - July 2, 2010 at 14:44:58
Yahoo. Hydro is making more money. Maybe now it's able to shut down that 'dinosaur' of a hydroelectric plant in Holyrood.
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- Randy
- - July 1, 2010 at 21:45:48
How much of a bonus will these Nalcor ceo's be receiveing this yr i wonder..We'll never know,because the company was set up by Dundderdal and Williams,to never be subject to audit.How much tax-payer money is pumped into this sink hole anyway and how much will our rates go up..Tell us that DANNY
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- flloyd
- - July 1, 2010 at 21:24:12
Yahoo. Hydro is making more money. Maybe now it's able to shut down that 'dinosaur' of a hydroelectric plant in Holyrood.
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