NB Power applies for 2% rate hike
Electricity rates will increase April 1 if the Energy and Utilities Board approves the application
NB Power is applying for a 2 per cent rate hike that would take effect April 1, according to a news release from the utility.
It says it applied to the Energy and Utilities Board Monday for the same rate of increase for all customers including residential, farm, commercial, institutional, industrial and wholesale.
"Small annual increases today will help us make financial progress now and allow us to continue to pay down debt to protect our customers over the long term," said Gaëtan Thomas, NB Power President and CEO.
NB Power is pursuing a long-term financial plan that would see the corporation achieve a debt to equity ratio of 80/20 by paying down nearly a billion dollars' worth of debt by 2021, said the release.
If approved, the rate increase would cost an extra $4 per month for the average New Brunswick family.
NB Power's rates will remain among the lowest in Canada, said Thomas.
As of April 1, 2015, the cost of residential electricity ranged from 8.11 cents per kilowatt hour in Winnipeg to 15.62 cents per kilowatt hour in Charlottetown, according to Hydro Quebec.
As of May 1, 2015, a monthly bill for 1000 kilowatt hours cost $71.91 in Montreal, compared to $122.98 in Moncton and $164.97 in Kenora, Ont., according to Manitoba Hydro.
NB Power also applied for a 2 per cent rate increase in 2015, but after a hearing, the EUB ruled 1.6 per cent was reasonable. It just took effect Oct. 1.