Pros and cons of new rate agree­ment be­tween P.E.I. govern­ment and Mar­itime Elec­tric

The Guardian (Charlottetown) - - HOT ONLINE -

Pro: Elec­tric­ity rates will be sta­bi­lized over the next three years af­ter the P.E.I. En­ergy Ac­cord ex­pires Feb. 29. Con: Power rates will go up 6.9 per cent by 2019. Pro: P.E.I. En­ergy Cor­po­ra­tion will no longer be on the hook for a $68mil­lion CT4 diesel-fired gen­er­a­tor.

Con: Ratepay­ers are locked into 2.3 per cent rate in­creases for the next three years.

Pro: Mar­itime Elec­tric will be­gin work de­com­mis­sion­ing the Char­lot­te­town ther­mal plant, which will re­duce P.E.I.’s green­house gas emis­sions in en­ergy sup­ply.

Con: Is­lan­ders are re­spon­si­ble for pay­ing for costs as­so­ci­ated with this work through the rate in­creases.

Pro: Mar­itime Elec­tric has agreed to a slightly lower equity re­turn to its share­hold­ers as part of this new agree­ment.

Con: The util­ity still guar­an­tees a re­turn of 9.35 per cent, which is higher than the North Amer­i­can av­er­age rate of re­turn on elec­tri­cal rates of eight per cent.

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