July 31, 1998
(Justice)

The following is being distributed at the request of the Consumer Advocate:

Decision favourable to consumers

Consumer Advocate Dennis Browne stated today: "The 9.25 per cent rate of return set by the Public Utilities Board in today's decision will give the consumers in this province the lowest rate of return established for any public utility in the country.

"On behalf of consumers across the country, we would hope that other Public Utilities Boards will follow the leadership of the Newfoundland Public Utilities Board so that consumers throughout Canada can take advantage of the new Canadian economy with its low interest rates and long term Canada Bond which still hovers well below six per cent.

"The board's order will save consumers in this province in excess of $7 million this year and consumers, for the first time in recent memory, will see a reduction in their electricity bills."

Newfoundland Power has been ordered to pay a refund to consumers before the end of October 1998 to reflect the rate of reduction for the period January 1, 1998, to the last billing in August 1998. New rates will come into effect on September 1, 1998.

Browne stated: "While ordinary consumer will appreciate this rebate, large users of electricity, such as our hospitals, schools and municipalities will gain the most benefit from the rate reduction and the refund."

Browne concluded: "This has been a successful hearing for consumers. Consumers in this province now have the benefit of the lowest rate of return in the country. This is a good day.

"Over the next few days, we will be reviewing all aspects of this decision and will be providing information to consumers, through the media, in reference to the same."

Contact: Dennis Browne, (709) 724-3800.

1998 07 31 3:35 p.m.