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Electricity rate expected to rise in province

Published on April 24, 2012
The Telegram
Published on April 24, 2012
Topics :
Newfoundland and Labrador Hydro , Newfoundland and Labrador Board of Commissioners , Public Utilities

Most electricity consumers in the province can expect to pay more money on their power bills come July, according to Newfoundland and Labrador Hydro.

In its annual filing with the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB), Hydro’s fuel price projection came in at $119 per barrel of oil, up from the previous figure of $103.

The adjusted rate for consumers is expected to rise by 5.4 per cent as of July 1. Supply costs for Newfoundland Power associated with increased electricity usage will result in an additional 1.5 per cent increase as of the same date, according to Hydro.

The overall rate increase would then be seven per cent. The PUB is now tasked with giving final approval to the rate increases.

“Presently, electricity rates on the island are directly influenced by the price of oil used to generate electricity at the Holyrood Thermal Generating Plant,” said Jim Haynes, Hydro’s Vice President of Regulated Operations, in a news release issued today. “Rising oil prices mean electricity rates are increasing.”

Hydro said the wholesale rate for electricity will increase by approximately eight per cent, but the rate stabilization plan adjustment results in a lower rate increase of 5.4 per cent for consumers.

Comments

  • Username
    Gord
    - April 28, 2012 at 23:32:51

    What ever happened with the extra power being supplied to the grid from the Abitibi power stations and there are two less paper mills as well as closed fish plants etc.

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  • Username
    Gord
    - April 28, 2012 at 23:14:40

    Many unhappy posters here and rightly so. The household income of most people can not keep up with the annual increases and not all families have two incomes. Now, what are the seniors to do with a fixed income without pension increases. I think the minimal amount of crude oil Holyrood is using is being used as the perfect excuse to justify Muskrat Falls. If you want to point fingers at our increasing usage take a look at all the developers building homes with excessive lighting to flip for profit, look at the box stores with their huge open concept uninsulated ceilings, look at retailers who abandon buildings to move to a busier location, look at office building who's lights blare all night long and go to Nalcor's site and check out the list of organizations they donate to annually. Our power bill is factoring in donations to these groups who can't do it on their own reputation. It's out of control, why should the home owner who stayed in the same house for life be subject to equal increases as we did not contribute to the demand.

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  • Username
    gord
    - April 25, 2012 at 23:55:13

    I'm confused, if prosperity and growth is good for the province then why is my basic living costs forcing me to consider leaving here. What ever happened to "many hands lighten the load"? As population grows the more money they want from me and the big retailers still suck here in GF/W.

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  • Username
    Don Joseph
    - April 25, 2012 at 09:22:14

    Some of you people have to remember, that yes we are a have province.. but it's only those people that got their money in Alberta and brought it back that are actually able to afford anything. The rest of us 'poor' saps who tried to make a living here are just being forced out of our homes, and cars apparently...

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  • Username
    ME
    - April 25, 2012 at 08:52:58

    All I have to say .....this is BULL!!!!! I agree with alot of the comments, people are just going to start moving OUT OF NL the way prices are going up and up and up and up and up......people are just making it by now, we DON'T NEED THIS AT ALL!!!! There is NO DEMAND FOR HOUSES SO WAY ARE THEY GOING UP EVERYWHERE YOU LOOK????????

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  • Username
    Tom
    - April 25, 2012 at 08:43:14

    The day muskrat falls starts to be developed, we are expected to pay even more again for our power. Within the next few years rates are expected to go up 50% due to this project. The power will be generated and sold in the market for LESS than what we will be paying, so to make up the shortfall, we have to subsidise other provinces and U.S consumers. We should be paying no more than what others pay. If we can’t get the same price, then we should not be building since there is no real demand in the open market for the excess power. If there was the price would reflect it, and it does not so…………Hydro gets more customers, we have to pay more, we use oil we pay more, we get in a black hole, muskrat falls, and we have to pay a lot more. Getting screwed every way we turn. This is NOT a good project. I know why they want to build now. There will be a market for all the power at a good rate in the future, 20-30 years from now, but until then, the residents will pay an average of 50% more for clean power while we wait for good market conditions. Cheaper to build right now, but we get screwed. Either stop the project now, or run it at a loss. We should not be subsidising anybody else’s power.

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    • Username
      John Smith
      - April 25, 2012 at 09:31:53

      Tom b'y...you really don't have any idea about this project...do you? This project has nothing at all to do with selling power to outside markets. It was costed without the input from sales to NS, or even the loan guarantee. The development is to provide power here on the island, and get us off oil. If we can mannage to sell a bit great...if we don't it does not change the fact we will need extra power, and that oil is going up every day. Get informed my friend...

  • Username
    paul
    - April 25, 2012 at 00:16:28

    Hold on here.....as per the narrative electricity rates are influenced by the price of oil used to generate electricity at the Holyrood plant. Is this small generator at Holyrood supplying the whole province? What gives? More explanation please....

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  • Username
    PaddyHutch
    - April 24, 2012 at 22:05:34

    I'd say I'll start sleeping in the car, but I can't afford to fill that for heat either. For a have province, we are paying an awful lot to heat our homes and drive our vehicles. Cutting jobs, raising taxes, fuel costs, electricity.....when will it end? Next thing you'll be charging us money to flush toilets.

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  • Username
    Marg
    - April 24, 2012 at 20:11:46

    Some of us will just have to freeze next Winter.

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  • Username
    Joseph McGrath
    - April 24, 2012 at 19:51:42

    These rate increases are going to force us from our homes if they keep coming.Fixed income for seniors means no more money.Maybe they want us to buy a car so we can save on licence and registration fee??Maybe we got to buy a rifle and ammo and get trained in hunting and then get a licence at a reduced rate to hunt a bear.Is that how we are to get the extra cash for these increases.I just looked at the government SALARY ESTIMATES and it is highway robbery to see such a lot of the extra large salary payouts.Someones got to get some SENSE AND some PERSEPTIVE of what is happing in NL.This government is "OUT OF TOUCH".There is no gravy train for most of the population living here.

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  • Username
    John Smith
    - April 24, 2012 at 18:24:14

    Well, our prices for electricity have increased by 60% since 1998, every year it goes up by 6-8 %...and will continue to do so. One of the main reasons we need to get off oil dependence, and get muskrat falls done as soon as possible.

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