N.L. Hydro seeks rate hike due to rising oil prices

Moira Baird
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The price of electricity could increase by as much as two per cent for the average residential customer starting July 1.

Newfoundland and Labrador Hydro says rising fuel prices are behind the possible increase, and it has requested approval for the price hike from the Public Utilities Board (PUB).

The price of electricity could increase by as much as two per cent for the average residential customer starting July 1.

Newfoundland and Labrador Hydro says rising fuel prices are behind the possible increase, and it has requested approval for the price hike from the Public Utilities Board (PUB).

Hydro's largest customer is Newfoundland Power, which supplies power to the bulk of electricity consumers in the province. A Hydro rate increase will likely be passed on to Newfoundland Power customers.

A Newfoundland Power spokesman said Friday the utility will first assess the impact of the Hydro increase on its own rates and file that information with the PUB in the coming weeks.

The PUB will make the final decision.

"The price of oil required for electricity generation at the Holyrood Thermal Generating Station is forecast to be higher than over the last 12 months, resulting in an average increase of approximately two per cent in electricity rates to consumers this coming July," Jim Haynes, Hydro's vice-president of regulated operations, said in a statement.

The utility's revised forecast by international consultants, PIRA Energy Group, pegs the average price of crude this year at $83.85 Cdn. per barrel, according to a Hydro spokesperson.

Last year's average price was $75.95 per barrel of oil.

The utility filed an updated fuel-price projection Thursday for the rate stabilization plan, a fund that smoothes fluctuations in electric bills as the price of crude oil moves up and down.

The rate stabilization plan is reviewed annually.

Hydro says between 15 per cent and 25 per cent of the island's electricity comes annually from oil-fired generation at Holyrood.

mbaird@thetelegram.com

Organizations: Newfoundland and Labrador Hydro, Public Utilities Board, Newfoundland Power Holyrood Thermal Generating Station PIRA Energy Group

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Recent comments

  • barry
    July 02, 2010 - 13:30

    Ya . They alway's look for a rate hike when oil prices go up but do they drop the rate when oil prices go down . No they don't . Say no to the rate hike.

  • Tweedle
    July 02, 2010 - 13:26

    Whats the problem? Everyone thinks things are so rosy here that they can ask foolish prices for homes. Well no difference with utilities. Remember, Danny told you all that this was a HAVE province. Well to have one must pay. So dig a little deeper, keep letting Danny give millions to NALCOR and keep paying more and more to have basic services. Nothing new here people. You voted this government in, you need to vote it out before you have nothing left.

  • barry
    July 01, 2010 - 20:18

    Ya . They alway's look for a rate hike when oil prices go up but do they drop the rate when oil prices go down . No they don't . Say no to the rate hike.

  • Tweedle
    July 01, 2010 - 20:12

    Whats the problem? Everyone thinks things are so rosy here that they can ask foolish prices for homes. Well no difference with utilities. Remember, Danny told you all that this was a HAVE province. Well to have one must pay. So dig a little deeper, keep letting Danny give millions to NALCOR and keep paying more and more to have basic services. Nothing new here people. You voted this government in, you need to vote it out before you have nothing left.