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The following is being distributed at the request of the Consumer Advocate: Newfoundland Power's rate increase application "Newfoundland Power's attempt to extract a $4.6 million increase in revenue from the consumers of the province is offensive", says Consumer Advocate, Dennis Browne. Browne stated: "Just 39 days ago, the Public Utilities Board ordered Newfoundland Power to reduce its revenue requirements by $7.1 million. This $7.1 million reduction in rates benefitted hospitals, school boards, and municipalities, as well as ordinary consumers. For the first time in recent memory Newfoundland Power was ordered to give a rebate to its customers. Newfoundland Power now wants most of this money back." "Furthermore," Browne said, "the decision to seek a rate increase comes at a time when consumers are owed $5 million by Newfoundland Power for over-earnings collected by the utility in 1992 and 1993. The Public Utilities Board has already called a hearing into this issue. "This application for an increase in rates is another in a series of attempts by Newfoundland Power to gouge the consumers of the province. In 1996, the utility had initially applied for a $25 million increase in rates, an application which was ultimately denied by the board. This year Newfoundland Power refused to come forward of its own volition to have its rates reduced despite a dramatic decline in the long term bond rate and the Public Utilities Board was forced to call Newfoundland Power into a hearing at which time its rate of return was reduced from 11.25 per cent to 9.25 per cent. "The Public Utilities Board is required in law to ensure Newfoundland Power's facilities are managed and operated in a manner which will result in electricity being delivered to customers at the lowest possible cost consistent with reliable service. When this application comes before the Public Utilities Board the province's consumers will be seeking a reduction in the company's operating expenses which for the first six months of 1998 alone stood at $132.6 million." Contact: Dennis M. Browne, Q.C. 1998 09 11 12:15 p.m.
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