Energy and Utilities Board approves 2017-18 rate increase for NB Power
Fredericton, N.B. – NB Power will continue paying down its debt while also investing in outage prevention and reliability, and maintaining the lowest electricity rates in the Maritimes provinces, with an average 1.77 per cent rate increase for all customer classes approved by the Energy and Utilities Board (EUB) effective April 1, 2017.
“Small and steady rate increases are part of our long term financial plan to ensure stable and predictable costs for our customers now and in the future,” said Darren Murphy, Chief Financial Officer and Vice-President of Corporate Services at NB Power. “These incremental rate increases will allow us to manage variability in our revenue and expenses while we continue to pay down debt and prepare for large capital projects like the life extension of the Mactaquac Generating Station.”
The decision follows five days of public hearings conducted in February 2017 during which NB Power responded to detailed questions about the utility’s rationale for the rate increase from EUB members, public and private interveners and members of the public. The written decision is available on the EUB website.
NB Power has made a consistent effort to keep rates low and stable over the last few years. For the first time in nearly a decade, certain customer classes will receive slightly different rate increases based on a methodology approved by the EUB in May 2016. These differential rate increases will promote greater fairness among the rate classes based on the cost to serve each customer class.
Additional revenue from the rate increase will allow the utility to build equity and pay down debt in advance of the costs associated with the future of the Mactaquac Generating Station. It will also allow for some necessary investments in the non-nuclear side of Point Lepreau Generating Station, improving station performance and reliability for years to come.
MEDIA CONTACT: Marie-Andrée Bolduc, communications, NB Power, 506-458-3212 or email@example.com