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NB Power will increase rates by two per cent in October

19 June 2014

FREDERICTON (GNB) – NB Power will increase rates in all classes by two per cent on Oct. 1.

“This small increase will help NB Power meet its requirement to pay down debt while continuing to provide the safe, reliable and customer-focused service that New Brunswickers have come to depend on,” said NB Power president and CEO Gaëtan Thomas. “We understand the impact of higher costs on New Brunswick families, which is why we are working to help customers save energy and money through the Save Twice rebate program as well as additional educational and efficiency initiatives.”

The rate increase is in line with the original forecast for rate changes and debt reduction driven by theNew Brunswick Energy Blueprint released by the provincial government in October 2011.

Factoring in the increase, New Brunswick electricity rates remain the lowest in Atlantic Canada (see charts). The charts reflect NB Power’s all-in average rate of 11.27 cents per kWh, which includes the 10.25 cents per kWh energy charge, plus the monthly service charge.

“After three years, we remain on track to meet the targets we had forecasted as a result of the Energy Blueprint,” said Thomas.

Starting in the fiscal year 2015-16, NB Power will be required by the new Electricity Act to make an annual rate application to the Energy and Utilities Board for increases, decreases or maintenance of rates on the revenue required to meet financial targets. The two per cent increase set for Oct. 1 will help NB Power stay on track to meet its debt reduction goal of $1 billion by 2021. The utility’s annual revenue requirements will be part of a rolling 10-year strategic, financial and capital investment plan that will be submitted to the Energy and Utilities Board annually starting in 2015.

 

Media Contact(s)

Deborah Nobes, communications, NB Power, 506-458-4838, [email protected]

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