‘No doubt some cus­tomers will be im­pacted’

The Labradorian - - FRONT PAGE -

“Hy­dro has been in­vest­ing in the Labrador sys­tem over the last sev­eral years. In par­tic­u­lar, with the very ac­tive econ­omy in Labrador… so we need to make in­vest­ments there to strengthen the sys­tem to main­tain re­li­a­bil­ity,” says Hen­der­son.

“We have to ad­just the rates to re­flect the costs of sup­ply­ing elec­tric­ity there in Labrador.”

Ac­cord­ing to Hen­der­son about $39 mil­lion was spent in in­fra­struc­ture and other costs in Labrador in re­cent years.

In terms of the pro­posed in­creases to the coast of Labrador, Hen­der­son says those rates are im­pacted by the in­ter­con­nected sys­tem. So if Labrador’s in­ter­con­nected cus­tomers in Lab West and cen­tral Labrador are fac­ing a rate in­crease, so will the coastal cus­tomers.

“Their (coastal cus­tomers’) costs are sub­si­dized by the rate pay­ers on the…in­ter­con­nected sys­tem,” says Hen­der­son. “So the in­creases these cus­tomers are see­ing, and the changes in the rates, are re­flec­tive of the cost changes on the in­ter­con­nected sys­tem.”

Hen­der­son ad­mits the price in­crease could have sig­nif­i­cant im­pact on some cus­tomers, de­pend­ing on their elec­tric­ity con­sump­tion. He says that NL Hy­dro is will­ing to show peo­ple ways that they can lower their amount of en­ergy con­sump­tion.

“There’s no doubt that some cus­tomers will be im­pacted a fair bit,” said Hen­der­son. “What we would like to do, to help cus­tomers, is to re­fer them to our ‘take charge’ pro­gram to help as­sist them in find­ing ways to save costs.”

The Public Util­i­ties Board (PUB) will hold hear­ings this fall to re­view the ma­jor­ity of the re­quested changes, akin to the more com­mon New­found­land Power rate ap­pli­ca­tion and re­view process.

Ul­ti­mately, the PUB may de­cide not to ap­prove the rate change as re­quested, call­ing for more mi­nor changes or deny­ing in­creases.

No dates have yet been set for the re­view.

“There’s no doubt that some cus­tomers will be im­pacted

a fair bit”


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