Newfoundland Power has proposed a 5.5 per cent increase in customer electricity rates in 2025, but the province's Public Utilities Board believes the increase may go higher in order to recover costs. (Jeremy Eaton/CBC)
Newfoundland and Labrador's Public Utilities Board says power rates in the province could increase more than rates proposed by Newfoundland Power over the next two years, according to a news release from the PUB.
Newfoundland Power made its general rate application to the PUB in December, asking the board for a full review of its costs in 2025 and 2026 to be recovered in customer rates.
If approved, the application would result in an average rate increase of 5.5 per cent in 2025 for customers of Newfoundland Power and for customers of Newfoundland and Labrador Hydro whose rates are based on Newfoundland Power's rate.
According to a news release sent by the PUB earlier this month, the utility wants an increase because of higher costs since its last application. It also wants a greater return on equity, from 8.5 per cent to 9.85 per cent.
"Full recovery of Newfoundland Power's costs, including forecast supply costs, could result in a significantly higher increase in customer rates than the 5.5% indicated in the application," the PUB wrote in its release.
Newfoundland Power also asked for a 1.5 per cent rate increase which would come into effect this July.
President Gary Murray told CBC News in November that the increases are needed because the company is replacing aging infrastructure and assets to better handle storms.
The PUB will meet on Thursday to set a schedule and procedures for the application process.