NB Power files General Rate Application with Energy and Utilities Board for 2016/17
Fredericton, N.B. – Today, NB Power filed a General Rate Application with the Energy and Utilities Board (EUB) requesting a two percent rate increase for April 1st, 2016-2017. The rate would apply to all customer classes. This application follows the strategy for long-term low and stable rates first laid out by NB Power in 2011 and in subsequent 10-Year Plans filed annually with the EUB.
As mandated in the Electricity Act (2013), NB Power is pursuing a long-term financial plan that would see the corporation achieve a debt to equity ratio of 80/20 by paying down nearly a billion dollars’ worth of debt by the year 2021. Pursuing this strategy allows NB Power to methodically pay down debt and lower interest payments over time so that it can prepare for what is expected to be a changing energy future. At the same time, NB Power continues to pursue efficiencies in the running of the company to ensure it makes consistent annual financial gains and rate stability for New Brunswick families and businesses.
“Small annual increases today will help us make financial progress now and allow us to continue to pay down debt to protect our customers over the long term”, said Gaëtan Thomas, President and CEO of NB Power. “With a two percent increase, our rates will remain among the lowest in Canada and will help us meet our commitment to finding additional efficiencies in our performance while improving our finances.”
If approved, the rate increase would represent an extra $4 per month for the average New Brunswick family and would maintain NB Power's residential rates as the lowest in the Maritimes.
The measures outlined in today’s application with the EUB are required to achieve the strategic and financial objectives laid out in the 10-Year Plan. These measures give NB Power the flexibility to respond to unexpected events, to changing markets and technologies, and to potentially invest in new sources of generation as decisions on the Mactaquac Hydro Generating Station are required.
Today's filing will allow the EUB and various stakeholders to review the evidence in preparation for a hearing expected in 2016.
The Evidence document can be accessed on the New Brunswick's Energy and Utilities Board website.
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