Premier and ministers meet with Labrador West delegation

Premier Roger Grimes, Mines and Energy Minister Lloyd Matthews, and Labrador and Aboriginal Affairs Minister Ernest McLean, today met with a committee from the Labrador West region to discuss the recent Public Utilities Board (PUB) decision which directs Newfoundland and Labrador Hydro (Hydro) to implement uniform rates for electricity users on the Labrador interconnected system.

"The PUB is an independent, quasi-judicial board mandated to ensure that rates are fair for all residents of the province," said Premier Grimes. "The Labrador West committee has acknowledged that government has no authority to overrule the recent PUB decision and they have not asked for a change in that position."

The PUB has instructed Hydro to equalize rates in western Labrador and to present a five-year plan that will level rates across the interconnected system in Labrador by 2009.

The premier continued: "Government will examine the information and evidence which led to the 1993 recommendation by the PUB, subsequently accepted by government, that established the concept of the Labrador interconnected system for rate purposes. We will initiate a consultative process involving Hydro, the residents of Labrador West and government to ensure that all parties are informed of the rationale for the decision that was taken at that time."

The premier noted that government recognizes the difficult market situation faced by the iron ore companies in Labrador West, and the economic impacts that increases in electricity rates would cause to their operations.

"Government will take into account all relevant information during this period of review to ensure that the concerns of Labrador West residents were adequately considered during previous PUB hearings. We will work diligently to provide a response to the residents of western Labrador in a timely manner."

Media contact: Carl Cooper, Office of the Premier, (709) 729-3960.

2002 09 10 4:55 p.m.