ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Apr 18, 2013) - Yesterday, Newfoundland Power Inc. (FTS.TO) received a ruling on its 2013-2014 general rate application ("GRA") from the Newfoundland and Labrador Board of Commissioners of Public Utilities ("PUB"). Today, Newfoundland Power outlined the expected impact of this ruling on its customers' electricity rates.
"It will take several days to determine the detailed impact of this ruling," said Earl Ludlow, President and Chief Executive Officer, Newfoundland Power Inc. "However, based on our initial review, we expect that customer electricity rates will, on average, decrease by approximately 3% on July 1, 2013."
The impact of yesterday's PUB ruling will result in an overall increase of approximately 5% in electricity rates on July 1, 2013. Last week, a proposed decrease of approximately 8% in electricity rates on July 1, 2013, was announced due to the operation of the annual Rate Stabilization Plan. When combined, it is expected that Newfoundland Power's customer electricity rates will be, on average, approximately 3% lower on July 1, 2013.
The actual amount of the decrease will vary for individual customers depending on their class of service and the amount of electricity used. For the Company's residential customers, electricity rates are expected to be approximately 2% lower on July 1, 2013.
The PUB ruled that for the purposes of setting customer electricity rates, the Company's capital structure would remain at 45% common equity with an allowed return on equity of 8.8% for 2013 through 2015.
"We remain committed to helping our customers save energy and save money with enhanced programs, tools and practical tips with our energy efficiency partnership with Newfoundland and Labrador Hydro, takeCHARGE - Saving Energy Starts Here!," concluded Ludlow.
Visit newfoundlandpower.com to review the PUB ruling regarding Newfoundland Power's 2013-2014 GRA.
With a customer base of over 252,000 accounts, Newfoundland Power Inc. is committed to safety and dedicated to providing the highest level of customer service and reliability of electricity in the most cost-efficient manner possible. For more information on Newfoundland Power's programs, services and community partnerships, please visit www.newfoundlandpower.com. All of the common shares of Newfoundland Power Inc. are owned by Fortis Inc.
Fortis Inc. is the largest investor-owned distribution utility in Canada, with total assets of approximately $15 billion and fiscal 2012 revenue totaling $3.7 billion. The Corporation serves more than 2,000,000 gas and electricity customers. Its regulated holdings include electric distribution utilities in five Canadian provinces and two Caribbean countries and a natural gas utility in British Columbia, Canada. Fortis inc. owns and operates non-regulated generation assets across Canada and in Belize and Upstate New York. It also owns hotels and commercial office and retail space in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS.