Newfoundland Power denied full rate hike

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Newfoundland Power

The Public Utilities Board (PUB) has issued its decision on an application filed by Newfoundland Power, denying the company the rate hike it had requested.

The company filed its request for a 7.2 per cent hike for homeowners on Sept. 14, 2012.

The request was subject to hearings before the energy regulator in January and February.

In its decision issued today, the board did not award the 7.2 per cent hike and stated Newfoundland Power would have to file a new proposal in line with decisions by the board related to its specific costs.

The bottom line, according to Consumer Advocate Thomas Johnson, is the coming power rate hike will not be as high as proposed by the Fortis company.

When the application was being debated before the energy regulator, members of the Newfoundland Power executive said the rate hike is needed to both maintain a strong financial position for the company and provide a fair return to shareholders.

Johnson argued the proposed hike was a show of corporate greed — for shareholder profit, rather than in the interest of fairness.

“One of the main drivers for the rate increase was the (requested) return on equity,” Johnson told The Telegram shortly after 12:30 p.m. today.

The requested return on equity was for 10.4 per cent this year, for example, up from 8.8 per cent.

“We had argued the return should be less than that,” Johnson said.

The PUB has decided 8.8 per cent is a fair return for the company.

The ultimate impact of the decision on customers will not be known until the company files its new numbers with the board.

 

 

 

Organizations: Newfoundland Power, Public Utilities Board

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Recent comments

  • Devil's Advocate
    April 29, 2013 - 10:18

    A little closer to more than every cent accounted for per pay. I already go cold and hungry half the time : (

  • John F. Walsh
    April 18, 2013 - 09:11

    I think it's ridiculous that Newfoundland Power has been granted this request. They always go before the PU Board with an inflated request and come with exactly what they wanted in the beginning. It's time for the PU Board to act more than a rubber stamp and look after the consumer for a change.

  • david
    April 17, 2013 - 12:52

    A requested ROE of 10.4%?!? What planet is Newfoundland Power living on, and can I please get a bank savings account or RSP or TFSA there?