Minister Noel says Hydro rate application is not related to dividend payments

Mines and Energy Minister Walter Noel says Opposition Critic Shelley is misinformed and wrong when it comes to the reasons for Hydro�s rate application to the Public Utilities Board (PUB).

"Dividend payments come from Newfoundland and Labrador Hydro�s (Hydro) profit, not from the costs on which rates are based," said Minister Noel. "If Hydro retained more earnings, it would have no effect on Hydro�s application and the PUB�s decision to grant a rate increase.

"Is Mr. Shelley suggesting that we take no dividends from Hydro to invest in public services that are used by our citizens on a daily basis? Hydro is owned by the people of this province, and as the shareholders they are entitled to receive dividends. Public services must be maintained, and we will continue to use Hydro dividends as a legitimate source of revenue.

"The dividend payments that are received in this province are comparable to those paid by other public sector electrical utilities throughout Canada. Our government will continue to use these revenues for the benefit of all Newfoundlanders and Labradorians."

Media contact: Darrell Mercer, Communications, (709) 729-5777

2003 05 22                                      5:20 p.m.