NL Hydro proposes short-term 6% rate decrease

Low oil prices have led Newfoundland and Labrador Hydro to filean application with the Newfoundland and Labrador Board of Commissioners of Public Utilities requesting to drop electricity rates in the shortterm.

If the proposal is accepted, most island customersresidential, industrial and commercialwould see a decrease of 6.3 per cent on their bills by March 1.

The proposed price change would stay in effect until the PUB has a chance to review theapplication.

• Hydro cites aging assets, rising costs as reasons for rate increase

The request comes after fuel costs for the Holyrood Thermal Generating Station werereassessed for 2015.

In a news release Wednesday, Hydro said customers in isolated communities would see "rate changes equal to those approved for Newfoundland Power customers."

In November, Hydro said it wantedto increase rates by 2.8 per centin order to upgrade and maintain its aging generation and distribution network, and to pay the higher costs associated with delivering a reliableand cost-efficient service.

However, falling oil prices have changed that.

When Hydro announced the proposed increase last fall, "the average cost of No. 6 fuel used at Holyrood was $93.32 per barrel."

"The most recent forecast puts the average cost of fuel at $65.63 per barrel."