July 22, 1996
(Mines and Energy)

Electricity rates in Southern Labrador

Rex Gibbons, Minister of Mines and Energy, today announced that government has accepted the recommendation of the Public Utilities Board (PUB) that island interconnected electricity rates should apply to the Labrador Straits area communities between L'anse au Clair and Red Bay.

Consumers in these communities are presently receiving electrical service from diesel generators, and are paying rates that have been established for high cost isolated systems. As a result of Newfoundland and Labrador Hydro Corporation's efforts to find lower cost power options, the corporation negotiated a contract to purchase power from Hydro Quebec's Lac Robertson project.

Following a request by area residents, government referred the issue of the appropriate rates to be charged in this area to the PUB. The PUB held public hearings in February and April of this year and delivered its recommendation to government on July 12.

The minister said that the decision, which will benefit individuals as well as area business development, demonstrates that the process works. He said: "As a result of Hydro's efforts to seek out means to reduce costs and the PUB's recommendation, electricity consumers in the province will benefit, with customers in the Labrador Straits area receiving normal interconnected rates."

Contact: Barry Rodgers, Director, Energy Economic Policy, Energy Branch, (709) 729-3674, Fax: (709) 729-2508, e-mail: brodgers@atpl.dnr.gov.nf.ca